Legislative Update

State Budget Update

The Budget Subcommittees on Education have held hearings in both the Senate and the Assembly on the CSU's 1999-2000 support budget request. However, because each of the subcommittees is waiting for the May Revise to make their final budget decisions, the entire CSU support budget request has been placed on the "checklist" in both houses.

It has been projected that California may realize between $3 and $4 billion in additional revenue over the next year, based on income from tax collections during the month of April and other tax gains stemming from California's robust economy. This anticipated revenue will lead to the May revision of the Governor's proposed $77.5 billion budget which he unveiled in January of this year. This is a critical time for all CSU constituencies to continue their strong advocacy for the CSU's budget priorities, which include:

• Compensation Increases for Faculty and Staff ($28.4 million)
• Additional Compensation to Address the Faculty Salary Lag ($19.5 million)
• Funds to Support the CSU's Technology Plan ($23 million)
• Applied Agricultural Research Funding ($4 million)
• Funds to Support High Cost Programs ($15 million)

Report on Employee Relations Legislation

One of the most significant issues before the Legislature this year, in terms of its impact on the CSU and other public institutions of higher education, is that of employer-employee relations. Among the bills which have been introduced this session are:

• Senate Bill 1241 (O'Connell). Agency Fee. SB 1241 amends the Higher Education Employee Relations Act (HEERA) to require the implementation of a mandatory "fair share" or "agency shop fee" for all employees of the California State University system who are members of a collective bargaining unit. This requirement would not be subject to collective bargaining and would not require a vote of the affected employees. It would be in effect for at least four years, from January 1, 2000 to January 1, 2004. The fees would be collected by the employer and transmitted to the employee organization. (Note: The provisions of this bill relating to the CSU were recently rolled into SB 645.)
• Assembly Bill 406 (Knox). Contracts. AB 406 would prohibit the issuance of a personal service contract which would result in the displacement of CSU employees. Under existing law, the CSU may enter into service contracts with public or private agencies, corporations, associations, or foundations. Typically, these contracts directly engage the time and effort of a contractor whose primary purpose is to perform an identifiable task, rather than furnish an end item of supply. AB 406 was approved by the Assembly Higher Education Committee on April 20 and will next be heard in the Assembly Appropriations Committee on May 12.
• Assembly Bill 1372 (Reyes). Temporary Employees. This bill would require a tempo-rary nonacademic employee of the CSU to be granted permanent status if the employee has served in his or her classification at the campus for at least 3 consecutive years in a time-base of at least 50%. The bill would also require part-time service performed by non-academic employees to be credited toward permanent status, on a pro rata basis. Temporary appointments at the CSU are normally made when a position is funded by contracts or grants, or when a project has a limited duration. Currently within the CSU, all temporary employees receive prorated vacation and sick leave. This bill will next be heard in the Assembly Appropriations Committee on May 12.