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CaliforniaSB 1392025-2026 Regular SessionSenateWALLET

Budget Act of 2025.

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 2 costs, 2 mixed.

OPEB contributions paused for some units

From July 1, 2025 through June 30, 2027, Unit 12 stops both employee and employer retiree health prefunding contributions. Unit 9 stops the employer prefunding contribution and it is not withheld from employee pay in that period. Unit 6 stops the employer share, but employees continue their 4.0% contribution.

Paychecks continue during budget delays

If the Budget Act is late in 2025, 2026, or 2027, the Controller keeps paying covered state workers. Pay and benefits continue for work done from July 1 until the budget is enacted. Payments come from the General Fund and unallocated special funds and are limited to what is needed for that work period.

Retiree health payroll contributions and rules

The state aims for a 50/50 split of retiree health costs. Employees who are eligible for health benefits, including permanent intermittent staff, pay a set percent of pensionable pay into the fund. Starting July 1, 2023, rates can change each July 1 if actuarial costs move by more than 0.5 percentage point, with annual changes capped at 0.5 point and keeping the 50/50 split. Money paid goes to the Annuitants’ Health Care Coverage Fund and is not refundable. Examples: Unit 13 rose to 3.9%, Unit 18 to 4.0%, Unit 19 to 3.0%, and Unit 16 to 1.4%, with 2020–21 employee suspensions. Unit 5 phases in contributions after using a 3.4% salary increase for prefunding; by July 1, 2024 the example schedule reaches 3.4% employee and 3.4% employer, subject to actuarial rules. The HR Director can set rates for certain non‑bargaining or excepted employees, and the state matches contributions.

Units 9 and 12 pay-for-leave plan

From July 1, 2025 to June 30, 2027, employees in Units 9 and 12 are in PLP 2025. Pay is cut by up to 3% each month. In return, you get up to 5 hours of paid leave each month. Retired annuitants and certain Budget Act entities are not included.

Budget cuts tied to union agreements

The law reduces Budget Act items linked to agreements with Units 9 and 12 by $88.773 million total: $18.219 million (General Fund), $47.271 million (unallocated special funds), and $23.283 million (other nongovernmental cost funds).

Union deals approved; MOUs set terms

The law approves MOU provisions for Units 9 (June 19, 2025) and 12 (June 20, 2025) that need funding, but they take effect only if money is appropriated. MOUs or addenda made June 21–30, 2025 that help meet Section 3.90 budget cuts are ratified. If funds are not approved, either side may reopen talks. If an MOU conflicts with this law, the MOU controls. Approved MOUs can also take effect through laws passed outside the annual Budget Act, and pay and benefit rates must match an approved MOU unless the Budget Act says otherwise.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 138 • No: 12

Senate vote • 6/30/2025

Item 97 — Senate SFLOOR

Yes: 34 • No: 1

House vote • 6/30/2025

Item 1000 — Assembly AFLOOR

Yes: 76 • No: 1

Senate vote • 3/20/2025

Item 73 — Senate SFLOOR

Yes: 28 • No: 10

Actions Timeline

  1. Chaptered by Secretary of State. Chapter 25, Statutes of 2025.

    6/30/2025Senate

  2. Approved by the Governor.

    6/30/2025legislature

  3. Enrolled and presented to the Governor at 6:45 p.m.

    6/30/2025legislature

  4. Assembly amendments concurred in. (Ayes 34. Noes 1. Page 1845.) Ordered to engrossing and enrolling.

    6/30/2025Senate

  5. Senate Rule 29.4 suspended.

    6/30/2025Senate

  6. In Senate. Concurrence in Assembly amendments pending.

    6/30/2025Senate

  7. Read third time. Passed. (Ayes 76. Noes 1. Page 2363.) Ordered to the Senate.

    6/30/2025House

  8. Assembly Rule 63 suspended. (Ayes 56. Noes 19. Page 2362.)

    6/30/2025House

  9. Ordered to third reading.

    6/30/2025House

  10. Withdrawn from committee pursuant to Assembly Rule 96.

    6/30/2025House

  11. From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET.

    6/25/2025House

  12. From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET.

    6/24/2025House

  13. Referred to Com. on BUDGET.

    3/24/2025House

  14. In Assembly. Read first time. Held at Desk.

    3/20/2025House

  15. Read third time. Passed. (Ayes 28. Noes 10. Page 443.) Ordered to the Assembly.

    3/20/2025Senate

  16. Read second time. Ordered to third reading.

    3/18/2025Senate

  17. Ordered to second reading.

    3/17/2025Senate

  18. Withdrawn from committee. (Ayes 27. Noes 10. Page 384.)

    3/17/2025Senate

  19. Referred to Com. on B. & F. R.

    2/5/2025Senate

  20. From printer. May be acted upon on or after February 23.

    1/24/2025Senate

  21. Introduced. Read first time. To Com. on RLS. for assignment. To print.

    1/23/2025Senate

Bill Text

  • Chaptered

    6/30/2025

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  • Enrolled

    6/30/2025

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  • Amended Assembly

    6/25/2025

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  • Amended Assembly

    6/24/2025

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  • Introduced

    1/23/2025

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