State Bargaining Unit 6.

The California Senate Committee on Budget and Fiscal Review has put forward legislation to approve and implement a new memorandum of understanding (MOU) with State Bargaining Unit 6, covering July 2025 through July 2028. The agreement modifies employee compensation, benefits, and leave programs while adjusting the state's prefunding obligations for retiree healthcare.

The legislation authorizes continuous appropriations to maintain employee compensation if budget acts are delayed, while requiring specific legislative funding approval for new MOU provisions to take effect. Either party may reopen negotiations if the Legislature does not appropriate necessary funds.

For the 2025-2027 period, Bargaining Unit 6 employees will participate in a Personal Leave Program that reduces pay by 3% in exchange for 5 monthly leave credit hours (7 hours for certain Fire Captain positions). The state's matching contribution to prefund retiree healthcare benefits will be suspended during fiscal years 2025-26 and 2026-27, while employees continue contributing 4% of pensionable compensation.

The bill reduces Budget Act of 2025 appropriations by approximately $120.2 million to align with the negotiated agreement. These reductions include $120.24 million from the General Fund and $2,000 from special and nongovernmental cost funds.

Implementation of certain provisions depends on the enactment of related legislation (Assembly Bill 139 and Senate Bill 139) by January 2026. As a budget-related appropriations measure, the bill would take effect immediately upon enactment.