State workers oppose proposed $400M compensation cuts at Senate hearing

The Senate Budget and Fiscal Review Subcommittee No. 5 convened on May 20, 2025, to discuss critical issues surrounding corrections, public safety, judiciary, labor, and transportation in California. The meeting featured a series of public comments primarily focused on proposed cuts to state employee compensation and the implications of these cuts on workers and their families.

The session began with testimonies from state employees expressing their concerns about the potential for significant salary reductions. Calvin Yang, a state scientist, highlighted the unfairness of the state reneging on compensation agreements, especially in light of rising inflation and the costs associated with returning to the office. He urged the committee to oppose any payroll cuts.

Melissa Hokey, a member of the state workers' union, echoed these sentiments, criticizing the state for prioritizing unnecessary expenditures over fair compensation for workers who are essential to maintaining state operations. She emphasized the need for fiscal responsibility and questioned the rationale behind funding additional office leases while proposing salary cuts.

David Egan, representing the Department of Housing and Community Development, called for the rejection of any compensation cuts, stressing the high cost of living in California and the importance of honoring existing contracts. Frances O'Rourke from the California State Lottery also opposed the proposed cuts, citing previous budget savings achieved through reduced office space.

Candace Keyfavor, a long-time state employee, questioned the logic of increasing spending on office leases while simultaneously cutting employee pay. She urged the committee to consider alternatives that would not violate union contracts.

The discussion also included support for the governor's proposed modifications to the SP 678 grant program, as presented by Josh Gaugard on behalf of the Chief Probation Officers of California. He noted that these modifications would provide stability to probation departments while addressing the state's budget deficit.

Elizabeth Espinosa, representing urban and rural counties, supported changes to funding methodologies and emphasized the importance of including local communities in discussions about prison closures.

Several speakers, including Susan Rodriguez, chief negotiator for SCI Local 1000, and Ashley Lepar from the Emergency Medical Services Authority, reiterated the call to reject any cuts to state worker pay, framing the issue as a matter of respect and sustainability for workers who are vital to California's functioning.

The meeting concluded with a strong consensus among public commenters against the proposed cuts, highlighting the need for fair compensation and the importance of maintaining the integrity of collective bargaining agreements. The subcommittee's discussions underscored the ongoing challenges faced by state employees and the critical need for dialogue between the state and its workforce.