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May Revision includes proposed employee-compensation savings; LAO and unions urge bargaining and warn of labor-relations damage

3445850 · May 21, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

The May Revision assumes $766.7 million in employee-compensation savings (about $283.3 million General Fund) by deferring or suspending scheduled general salary increases and authorizes control-section language to impose reductions if bargaining does not produce agreements. The LAO recommended rejecting open-ended control language and asked for a

The Department of Finance presented the Assembly Subcommittee 5 with a May Revision proposal that would seek $766.7 million in employee-compensation savings, including $283.3 million in General Fund savings, as part of the administration's package to close a projected budget shortfall.

Han Dong Ming of the Department of Finance said the administration will "make every attempt" to reach savings through collective bargaining but also proposed control-section language that would suspend scheduled salary increases for ratified agreements…

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