All Roll Calls
Yes: 161 • No: 35
CaliforniaAB 1382025-2026 Regular SessionHouseWALLET
Budget Act of 2025.
Sponsored By: Jesse Gabriel (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 1 benefits, 0 costs, 6 mixed.
State workers keep pay during budget delays
If the Budget Act is late, your pay and benefits continue. For 2026–27, Units 2, 5, 6, 7, 9, 10, 12, 13, 16, and 19 keep getting paid from July 1, 2026 until the budget is enacted. For 2027–28, this applies to Units 2, 6, 9, 10, 16, and 19 starting July 1, 2027. For 2028–29, it applies to Units 6 and 16 starting July 1, 2028. The Controller only pays what is needed for work done in the gap before the budget passes.
Retiree health prefunding pause, then phased payments
For 2025–26 and 2026–27, many units get a pause on monthly retiree health prefunding. In some units both employee and employer payments stop; in others only the employer share stops. Unit 6 employees continue their employee payments. Unit 12 starts new payments on July 1, 2027 (1.4% of pay), adds 1.3% on July 1, 2028 (2.7% total), and adds 1.4% on July 1, 2029 (4.1% total). Unit 13 starts 1.2%, then +1.3%, then +1.3% (3.8% total) on those dates. Beginning July 1, 2030, both sides adjust to keep a 50/50 cost share, with changes limited to 0.5 points a year.
Personal Leave Program: pay cut, more leave
From July 1, 2025 to June 30, 2027, many state workers join the Personal Leave Program 2025. Units 6, 9, and 12 take up to a 3% pay cut and get up to five hours of leave each month; certain Fire Captains get up to seven hours. Your union contract or department sets the exact cut and leave. Employees at the Legislative Counsel Bureau and the State Auditor’s Office are exempt. Workers at entities listed in Budget Act Section 3.90 are also excluded.
Union contracts approved; changes need funding
The state approves the June 28 and July 8, 2025 union contracts. Pay and employer benefit rates follow approved contracts unless the Budget Act or another law says otherwise. Any item that costs money takes effect only if the Legislature funds it. If funds are not approved, the state or the union can reopen talks. Approval can happen in the Budget Act or in another law.
Unit 2 pension rates freeze, then adjust
For Unit 2 safety members, your contribution rate stays at 11.5% from July 1, 2025 through June 30, 2027. For Unit 2 miscellaneous and industrial members, rates in current law also remain in place through June 30, 2027. Starting July 1, 2027, rates can change when actuarial costs move. The board sets your rate at half of the normal cost, rounded to 0.25%, and any one‑year change is capped at 1 percentage point.
Units 12 and 19 pension rate changes
For Units 12 and 19, starting July 1, 2024 the base pension rate is 9.5% with federal service and 10.5% without, applied to pay over $513 or $317. On July 1, 2025, miscellaneous members’ rates change to 9% (federal) or 10% (non‑federal); industrial members stay at 9.5% or 10.5%. Unit 12 has a pause on any further increases tied to actuarial changes through June 30, 2027. Starting July 1, 2027, Unit 19 rates (including safety) can reset when two tests are met: the normal cost changes by more than 1 point from 2025–26, and half of the new cost (rounded to 0.25%) differs from the current rate.
State trims $528 million in pay budgets
The state reduces employee‑compensation budget items by $528 million. Cuts are $227.545 million from the General Fund, $216.351 million from special funds, and $84.178 million from other funds. These reductions follow agreements with the state employer and certain bargaining units.
Sponsors & Cosponsors
Sponsor
Jesse Gabriel
Democratic • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 7/17/2025
Item 198 — Senate SFLOOR
Yes: 28 • No: 9
House vote • 7/17/2025
Item 1000 — Assembly AFLOOR
Yes: 67 • No: 4
legislature vote • 7/14/2025
Vote in CS62
Yes: 13 • No: 5
House vote • 3/20/2025
Item 68 — Assembly AFLOOR
Yes: 53 • No: 17
Actions Timeline
Chaptered by Secretary of State - Chapter 78, Statutes of 2025.
7/29/2025SenateApproved by the Governor.
7/29/2025legislatureEnrolled and presented to the Governor at 11:30 a.m.
7/18/2025legislatureSenate amendments concurred in. To Engrossing and Enrolling. (Ayes 67. Noes 4. Page 2588.).
7/17/2025HouseAssembly Rule 63 suspended. (Page 2587.)
7/17/2025HouseIn Assembly. Concurrence in Senate amendments pending.
7/17/2025HouseRead third time. Passed. Ordered to the Assembly. (Ayes 28. Noes 9. Page 2124.).
7/17/2025SenateSenate Rule 29.4 suspended. (Ayes 24. Noes 8. Page 2123.)
7/17/2025SenateRead second time. Ordered to third reading.
7/16/2025SenateFrom committee: Do pass. (Ayes 13. Noes 5.) (July 14).
7/15/2025SenateFrom committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F. R.
7/14/2025SenateIn committee: Hearing postponed by committee.
6/25/2025SenateReferred to Com. on B. & F. R.
4/2/2025SenateIn Senate. Read first time. To Com. on RLS. for assignment.
3/20/2025SenateRead third time. Passed. Ordered to the Senate. (Ayes 53. Noes 17. Page 732.)
3/20/2025HouseRead second time. Ordered to third reading.
3/18/2025House(Ayes 53. Noes 17. Page 643.)
3/17/2025HouseOrdered to second reading.
3/17/2025HouseWithdrawn from committee.
3/17/2025HouseReferred to Com. on BUDGET.
2/3/2025HouseFrom printer. May be heard in committee February 8.
1/9/2025HouseRead first time. To print.
1/8/2025House
Bill Text
Chaptered
7/29/2025
Enrolled
7/17/2025
Amended Senate
7/14/2025
Introduced
1/8/2025