California Healthline Daily Edition

Summaries of health policy coverage from major news organizations

Brown Administration Plans To Cut State Worker Costs by $750M

Last week, officials from Gov. Jerry Brown's (D) administration met with state employee union leaders to discuss potential cuts to worker costs, according to sources familiar with the meetings, the Sacramento Bee's "The State Worker" reports. The cuts could include higher employee contributions to health care benefits.

Budget Revision Details

In his fiscal year 2012-2013 budget plan released in January, Brown estimated that the state faces a $9.2 billion budget deficit. However, recent findings from state officials suggest that the deficit is significantly more.

Sources said that Brown administration officials told union leaders that the governor's May budget revision will seek $750 million in state employee cost savings. The officials asked union leaders to help develop ways to achieve the savings, according to sources (Ortiz, "The State Worker," Sacramento Bee, 5/9).

Brown is expected to release the budget revision on Monday (Megerian, "PolitiCal," Los Angeles Times, 5/9).

Possible Cuts to State Worker Costs

Brown's revised budget could seek savings by:

  • Implementing furloughs;
  • Increasing worker contributions to pensions;
  • Ordering wholesale layoffs; or
  • Requiring outright pay cuts ("The State Worker," Sacramento Bee, 5/9).
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