State Bargaining Unit 6.

The California Assembly Committee on Budget proposes modifications to state employment agreements and benefit structures through legislation that revises compensation arrangements for State Bargaining Unit 6. The bill establishes a new Personal Leave Program requiring Unit 6 employees to accept a 3% pay reduction in exchange for monthly leave credits from July 2025 through June 2027.

The measure suspends employer contributions to retiree healthcare prefunding for fiscal years 2025-26 and 2026-27 while maintaining employee contributions at 4%. It provides continuous appropriation authority to ensure compensation continues if budget acts are delayed, extending through fiscal year 2028-29 for Unit 6 employees.

To offset costs, the legislation reduces specific Budget Act appropriations by approximately $120.2 million, primarily from the General Fund. The bill allows certain memorandum of understanding provisions requiring expenditures to take effect through legislative appropriations outside the annual Budget Act process.

Implementation depends on coordination with related bills - AB 139 and SB 139. If enacted together, AB 140's amendments to various Government Code sections will only become operative if it is the last of the three bills enacted. The measure takes immediate effect as budget-related legislation.

The bill maintains existing employee eligibility for health benefits and continues requiring contributions to be deposited in the Annuitants' Health Care Coverage Fund without refund provisions. Any conflicts between the legislation and memoranda of understanding are resolved in favor of the agreements, provided expenditure provisions receive legislative approval.