Analysis of Governor's Proposal to Suspend State Employee Pay Increases and Authorize Compensation Reductions in 2025
In the 2025 May Revision, California proposes suspending state employee pay increases and authorizing the Department of Finance to reduce compensation if new labor agreements are not reached by July 1, 2025. This analysis reviews compensation components, past cost-reduction strategies, labor law context, and recommends legislative actions to guide and scrutinize such reductions.