California Department of Human Resources

The meeting addressed several key items following the call to order. Public comment was solicited but none was provided. The commission unanimously approved the minutes from the June 12, 2024 meeting, noting minor typographical corrections. The Chair's report updated the commission on the delayed Attorney General's opinion regarding the compensation structure for the Board of Equalization. Staff reports detailed several documents for review, including salary surveys for 2024 and benefit summaries. A presentation by the California Department of Human Resources covered collective bargaining updates, including scheduled salary increases for various state employee bargaining units and changes in employee retirement contribution rates. The Department of Finance provided an overview of the '25/'26 state budget, noting a projected surplus and the upcoming May revision. Following this, a presentation detailed the Consumer Price Index (CPI) calculation methodology and forecast, noting that recent actual inflation rates were slightly higher than projected. Finally, the State Board of Equalization presented on their constitutional duties, emphasizing their ongoing, full-time commitment to property tax administration and policy formulation, in response to earlier inquiries about reducing board member compensation based on decreased appeals workload.

The meeting involved discussions regarding salary adjustments for state officers, focusing on whether reductions or increases could be implemented in light of the state's fiscal condition. Legal counsel was sought regarding the ability to adjust salaries when the Special Fund for Economic Uncertainties (SFEU) deficit is below the one percent constitutional threshold; it was determined that the Commission is not precluded from making increases. The Commission heard a presentation from the Department of Human Resources detailing upcoming salary increases for state employees effective July 1, 2024, covering general salary increases and special salary adjustments at maximum pay rates, along with the eligibility percentages of the workforce. A subsequent presentation from the Department of Finance outlined the May revision budget, noting a projected $27.6 billion shortfall, budget balancing actions such as pulling from reserves, implementing reductions, and delaying payroll transactions for accounting purposes. The final segment included a presentation on the Consumer Price Index (CPI) economic forecast.

The meeting commenced with a roll call confirming all commissioners were present. Initial public comment was taken, excluding matters related to the Board of Equalization (BOE), which was deferred. The Commission unanimously approved the minutes from the March 18, 2025, meeting. The Chair's report addressed the ongoing discussion regarding the Attorney General's opinion concerning adjustments to BOE compensation. Staff reports summarized documentation received, including information on judicial branch salaries, the 2024/2025 economic uncertainties certification, and correspondence from taxpayer advocates and the BOE regarding workload changes, particularly due to Proposition 19. Presentations followed regarding collective bargaining updates, where savings through negotiated agreements related to the governor's May revision were discussed, focusing on potential salary deferrals rather than pay cuts compared to 2020. The Department of Finance presented an overview of the 2025 state budget at the May revision, noting a projected $12 billion shortfall to be closed by reductions, revenue/borrowing, and fund shifts, and confirmed salary deferrals fell under proposed reductions. A presentation on the Consumer Price Index (CPI) forecast indicated higher inflation projections for 2025, primarily driven by tariff policies. Finally, the Office of the Attorney General provided an overview of the written opinion concerning the Commission's authority over BOE base pay. The session concluded with presentations from the State Controller and Executive Director of the BOE, expressing opposition to any compensation reduction due to the critical, complex, and increasing workload of the BOE, especially concerning property tax administration ($110 billion in revenue) and recent legislative changes like Proposition 19.

The regular meeting of the Commission covered the adoption of the May 29, 2025 meeting minutes, noting a minor correction to the transcript. The Chair's report initiated a discussion regarding a more holistic review of compensation structure for the coming fiscal year, including calibrating pay across different officer roles and comparing compensation levels with other states. Staff reports included updates on collective bargaining, specifically a tentative three-year agreement with the CCPOA detailing a three percent general salary increase effective July 1, 2025, offset by a three percent Personal Leave Program reduction for the first two years. Updates were also provided on the state budget process and the current Consumer Price Index (CPI) forecast. The primary agenda item involved discussion and adoption of a proposed resolution setting compensation for elected officials. Following deliberation, the Commission voted unanimously to adopt a resolution for a 1.5 percent increase, recognizing the extraordinary fiscal situation while acknowledging historical under-compensation. The final item concerned scheduling meetings for the next fiscal year, where the Commission endorsed a more comprehensive approach to compensation review next year, potentially involving internal staff expertise or a subcommittee review of factors like time commitment, comparable compensation, and entity importance.

The meeting, conducted remotely, involved welcoming a new commissioner, Mr. Tyren Thompson, and introducing new counsel, Ms. Cohen, following the retirement of previous counsel. The Commission reviewed and approved the transcript of the meeting held on June 8th, 2021. Key discussion points centered on setting compensation for state officials amid economic uncertainty, specifically high inflation rates. A motion was introduced to grant a 7.8 percent wage increase, but after staff input indicated a much lower General Salary Increase (GSI) of 2.5 percent for the largest employee unit (SEIU 1000), the motion was amended. Ultimately, the Commission unanimously adopted a motion to increase salaries by 2.5 percent to align with the negotiated increase for other state employees. Commissioner Rice requested scheduling two meetings for the following year and sought data on the specific health benefit premiums for constitutional officers and legislators to ensure equity.