All Roll Calls
Yes: 141 • No: 10
CaliforniaSB 1402025-2026 Regular SessionSenateWALLET
Budget Act of 2025.
Sponsored By: Sponsor information unavailable
Signed by Governor
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 1 benefits, 1 costs, 3 mixed.
State worker pay continues during budget delays
The law keeps pay and benefits going if the Budget Act is late. For 2025–26, it covers Units 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 14, 15, 16, 17, 18, 20, and 21. For 2026–27 it covers Units 5, 6, 9, 10, and 12. For 2027–28 it covers Units 6, 9, and 10. For 2028–29 it covers Unit 6. The Controller pays only what is needed for work from July 1 until the Budget Act is enacted.
Retiree health prefunding rates for state workers
The law requires most state workers who get health benefits to pay a set percent of pensionable pay to prefund retiree health care. Examples: Unit 7 rose to 4.0% by July 1, 2019; Unit 8 reached 4.4% and then dropped to 3.4% no sooner than November 1, 2022; Unit 12 rose to 4.6% by July 1, 2020 with more increases in 2027–2029; Unit 5 uses a 0.0% employee rate with a 3.4% employer redirect starting July 1, 2020 and phases toward 6.8% total by 2024. Rates can be adjusted yearly to keep about a 50/50 split, with a 0.5% cap on changes. Only employees eligible for health benefits, including permanent intermittent, must pay. Contributions go to the Annuitants’ Health Care Coverage Fund and are not refundable. CalHR can set rates for certain excepted employees.
Retiree health deductions paused for some units
For Units 9 and 12, both employee withholding and the employer payment for retiree health prefunding are paused in 2025–26 and 2026–27. This raises take‑home pay for those employees during the pause. For Unit 6, the employer payment is paused in 2025–26 and 2026–27, but employees still pay 4.0%.
Pay cut with leave for Units 6, 9, 12
From July 1, 2025 to June 30, 2027, Units 6, 9, and 12 are in PLP 2025. Pay is cut by up to 3% each year. In return, employees get up to five hours of leave each month. Unit 6 Fire Captains get up to seven hours. Retired annuitants and certain listed entities are excluded.
Unit 6 labor deal and budget cuts
The state approves the Unit 6 memorandum of understanding dated June 12, 2025. Any parts that need state spending take effect only after the Legislature funds them in the Budget Act. If the MOU conflicts with this section, the MOU controls, but spending items still need approval. The law also cuts Budget Act items by $120,242,000: $120,240,000 from the General Fund and $1,000 each from two other items.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 6/30/2025
Item 98 — Senate SFLOOR
Yes: 38 • No: 0
House vote • 6/30/2025
Item 1000 — Assembly AFLOOR
Yes: 75 • No: 0
Senate vote • 3/20/2025
Item 74 — Senate SFLOOR
Yes: 28 • No: 10
Actions Timeline
Chaptered by Secretary of State. Chapter 26, Statutes of 2025.
6/30/2025SenateApproved by the Governor.
6/30/2025legislatureEnrolled and presented to the Governor at 6:45 p.m.
6/30/2025legislatureAssembly amendments concurred in. (Ayes 38. Noes 0. Page 1845.) Ordered to engrossing and enrolling.
6/30/2025SenateSenate Rule 29.4 suspended.
6/30/2025SenateIn Senate. Concurrence in Assembly amendments pending.
6/30/2025SenateRead third time. Passed. (Ayes 75. Noes 0. Page 2364.) Ordered to the Senate.
6/30/2025HouseAssembly Rule 63 suspended. (Ayes 56. Noes 19. Page 2362.)
6/30/2025HouseOrdered to third reading.
6/30/2025HouseWithdrawn from committee pursuant to Assembly Rule 96.
6/30/2025HouseFrom committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET.
6/24/2025HouseReferred to Com. on BUDGET.
3/24/2025HouseIn Assembly. Read first time. Held at Desk.
3/20/2025HouseRead third time. Passed. (Ayes 28. Noes 10. Page 443.) Ordered to the Assembly.
3/20/2025SenateRead second time. Ordered to third reading.
3/18/2025SenateOrdered to second reading.
3/17/2025SenateWithdrawn from committee. (Ayes 27. Noes 10. Page 384.)
3/17/2025SenateReferred to Com. on B. & F. R.
2/5/2025SenateFrom printer. May be acted upon on or after February 23.
1/24/2025SenateIntroduced. Read first time. To Com. on RLS. for assignment. To print.
1/23/2025Senate
Bill Text
Chaptered
6/30/2025
Enrolled
6/30/2025
Amended Assembly
6/24/2025
Introduced
1/23/2025