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Latest News - June 2013

June 17, 2013
SEIU deal increases state worker costs by nearly $735 million
Source: The Sacramento Bee

The tentative agreement hammered out between Gov. Jerry Brown and SEIU Local 1000 will add roughly $734.8 million over three years to California's compensation costs for the 95,000 employees the deal covers.

Put another way, the state's average cost per employee would increase under the proposal by roughly $7,700 -- $210 per month from July 2013 through June 2016. Union members must ratify the pact before it can take effect.

Raises phased in over the last two years of the deal account for the bulk of the money, according to estimates released last week by Brown's Department of Human Resources.

A planned 2 percent raise in fiscal 2014-15 would add a total of $262.5 million over two years. A second 2.5 percent pay increase anticipated in fiscal 2015-16 adds another $167.4 million for that year.

Higher health benefits costs will add another $271 million. Raises for seasonal clerks, employee pay differentials and a few other relatively minor items make up the balance.

Meanwhile, the state will save $2.79 million over the contract's three years because new CalPERS members will be under the lower-benefits, higher pension-contribution formulas mandated by the 2012 pension-change law.



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