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CaliforniaSB 1612025-2026 Regular SessionSenateWALLET

Budget Act of 2025.

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 2 benefits, 2 costs, 3 mixed.

State worker pay continues during delays

The law keeps paychecks and benefits going if the 2026, 2027, or 2028 Budget Act is late. Beginning July 1 of each of those years, the Controller pays covered state workers for work done until the budget is enacted. The Controller can pay only what is needed for that period. These payments are counted in the later Budget Act.

OPEB paycheck deductions paused 2025–2027

From July 1, 2025 to June 30, 2027, retiree health (OPEB) contributions are paused for the covered bargaining units and the judicial branch. Some units pause employee deductions, some pause employer payments, and some pause both. The law lists the exact start date for each group.

Unit 12 retiree health rates rise

Unit 12 members paid 1.5% starting July 1, 2017. The law pauses employee and employer OPEB contributions in 2025–26 and 2026–27. On July 1, 2027 the rate is 1.4%. It rises to 2.7% on July 1, 2028, and 4.1% on July 1, 2029. After July 1, 2030, rates adjust to keep a 50/50 split, with yearly changes capped at 0.5 points.

Unit 18 retiree health contributions rise

If you are in Unit 18, your retiree health contributions keep being taken from your pay through June 30, 2027. Starting July 1, 2027, rates can rise when costs go up: for miscellaneous/industrial and safety members, the normal rate becomes half of total normal cost when a 1% cost trigger is met. The first increase is capped at 1 percentage point; later yearly changes need a 1% cost change and are also capped at 1 point. Separately, contributions on pensionable pay are 1.5% on July 1, 2027; 3.0% on July 1, 2028; and 4.5% on July 1, 2029. From July 1, 2030, rates adjust to keep a 50/50 split, with at most 0.5 points per year.

Goal: split retiree health costs 50/50

The state and many bargaining units must prefund retiree health care. The goal is a 50/50 split of normal costs by each unit’s target date. Target dates vary by unit and the judicial branch.

State workers trade pay for leave

From July 1, 2025 to June 30, 2027, many state workers must 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; some Fire Captain classes get up to seven hours. Units 8, 10, and 18 start the first pay period after ratification and end June 30, 2027. For other listed units, pay cuts and leave hours follow each unit’s MOU or a department order. Employees of entities listed in Section 3.90 are excluded unless a department includes them.

Union deals approved, funding required

The law approves specific union agreements dated July–August 2025. When the Legislature approves an MOU, your pay and benefit contributions must match it unless the Budget Act says otherwise. Parts that need money start only when funds are specifically appropriated, including in stand‑alone laws; if funds are not provided, either side may reopen talks. The budget adds $14,597,000 total to carry out these agreements.

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: 127 • No: 11

Senate vote • 9/12/2025

Item 114 — Senate SFLOOR

Yes: 29 • No: 0

House vote • 9/11/2025

Item 159 — Assembly AFLOOR

Yes: 70 • No: 1

Senate vote • 3/20/2025

Item 95 — Senate SFLOOR

Yes: 28 • No: 10

Actions Timeline

  1. Chaptered by Secretary of State. Chapter 114, Statutes of 2025.

    9/17/2025Senate

  2. Approved by the Governor.

    9/17/2025legislature

  3. Enrolled and presented to the Governor at 2 p.m.

    9/15/2025legislature

  4. Assembly amendments concurred in. (Ayes 29. Noes 0. Page 2956.) Ordered to engrossing and enrolling.

    9/12/2025Senate

  5. In Senate. Concurrence in Assembly amendments pending.

    9/12/2025Senate

  6. Read third time. Passed. (Ayes 70. Noes 1. Page 3329.) Ordered to the Senate.

    9/11/2025House

  7. Senate Rule 29.4 suspended. (Ayes 30. Noes 10. Page 2935.)

    9/11/2025House

  8. Ordered to third reading.

    9/10/2025House

  9. Withdrawn from committee.

    9/10/2025House

  10. Assembly Rule 96 suspended. (Ayes 56. Noes 19. Page 3164.)

    9/10/2025House

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

    9/8/2025House

  12. Referred to Com. on BUDGET.

    3/24/2025House

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

    3/20/2025House

  14. Read third time. Passed. (Ayes 28. Noes 10. Page 450.) Ordered to the Assembly.

    3/20/2025Senate

  15. Read second time. Ordered to third reading.

    3/18/2025Senate

  16. Ordered to second reading.

    3/17/2025Senate

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

    3/17/2025Senate

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

    2/5/2025Senate

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

    1/24/2025Senate

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

    1/23/2025Senate

Bill Text

  • Chaptered

    9/17/2025

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  • Enrolled

    9/12/2025

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  • Amended Assembly

    9/8/2025

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  • Introduced

    1/23/2025

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