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Administration seeks authority to defer or impose 2025–26 salary increases; unions and lawmakers object

3410953 · May 20, 2025
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Summary

The May revision would let the administration suspend or impose salary increases under control sections tied to collective bargaining; legislative analysts and union representatives warned this could undermine bargaining and asked for clearer legislative limits and alternatives.

The administration proposed control sections (3.90 and 3.91 language in the May revision) that would permit it to pursue up to $766.7 million in savings (including $283.3 million General Fund) from employee compensation by deferring scheduled pay increases and, if necessary, imposing terms on bargaining units that do not reach agreement.

Department of Finance officials said the state will first attempt to achieve savings through collective bargaining for the July 2025 pay period and, if no agreement is reached, would include a budget revision to impose reductions.…

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