logo
California lawmakers join state workers in rejecting proposed salary freezes

California lawmakers join state workers in rejecting proposed salary freezes

Yahoo06-06-2025
In California's behind-the-scenes budget process, it's hard to know what legislative leaders and Gov. Gavin Newsom will agree to — until the dust settles.
But with just over a week to finalize the budget, or go without pay, lawmakers are weighing the options about which of the governor's proposed cuts they're willing to stomach. One option to help patch the $12 billion deficit would be to delay salary increases for public employees in the upcoming fiscal year. By negotiating pauses in pay raises with bargaining units, the administration hopes to save $767 million.
While some lawmakers have opted to remain quiet on the question, legislators on both sides of the aisle have said they are not willing to balance the budget on the backs of state employees' salaries.
'I'm here in solidarity to support you and to help fight for you in the Capitol,' Assemblymember Pilar Schiavo, D-Chatsworth, told a crowd of hundreds of state employees gathered on the Capitol grounds on Thursday morning.
A coalition of labor groups, including Service Employees International Union Local 1000 and smaller unions representing doctors, scientists and other public workers, descended on the Capitol to urge lawmakers to reject the governor's budget-savings measure.
The stakes are high for public sector unions, many of which have spent the last few months pushing back against Newsom's March directive to bring public employees back to offices four days a week.
Now, labor groups are hoping that lawmakers will say no to the governor's proposals.
While the governor has offered to negotiate with the state's 21 bargaining units over the salary freezes, the budget proposal before the Legislature now would grant the administration authority to impose savings anyway, if lawmakers agree. California is required to follow labor contracts that cover its workforce, but only if the Legislature approves the spending for it.
'Take care of state workers, so they can take care of Californians,' Kristen Silliman, a Department of Developmental Services employee, said outside the Capitol Swing Space Thursday waiting in line to lobby lawmakers.
The issue of supporting public employees is close to home for Schiavo, whose constituents have been suffering the health consequences and misery of a perpetually burning landfill in Southern California. Those who live near the Chiquita Canyon landfill have come to depend on the guidance of state scientists monitoring the noxious fumes coming off the literal dumpster fire.
'I want to be here to stand with you, to fight with you, and to make sure that this budget changes before we see it on our desk next week,' Schiavo said to rallying state employees.
While she does not sit on the Assembly budget committee, Schiavo said there is a general consensus among lawmakers that they don't want to balance the budget with the help of public workers who protect California's communities.
The vice chair of the Senate Budget Committee, state Sen. Roger Niello, R-Fair Oaks, similarly opposed the governor's proposal to freeze salaries.
'State workers' pay is a contractual obligation,' the Sacramento-area Republican said in a statement. 'It would be wrong for the Governor to unilaterally break that contract.'
Additionally, Assemblymember Sharon Quirk-Silva, D-Fullerton, previously expressed opposition to the cuts while presiding over a budget subcommittee hearing on the issue.
Other lawmakers, including those on budget committees, were not as eager to come out against the proposal.
State Sen. Christopher Cabaldon, D-West Sacramento, and Assemblymember Liz Ortega, D-San Leandro, both declined to comment when asked if they supported freezing public employees' salaries as part of the budget solution.
Meanwhile, state workers and their unions have not been quiet on the subject.
On Thursday, hundreds of public employees from across the civil service spectrum marched from the Capitol to the Swing Space in Sacramento to decry and lobby against the proposed payroll freeze. Equipped with pithy signs and a mariachi band, labor groups also hoped to call attention to various other employment issues at the state.
Dr. Kafia Abbasi, a psychiatrist who treats incarcerated patients at the California Health Care Facility in Stockton, said it's already difficult to recruit doctors to work in state prisons.
'It's taxing to work in a toxic, stressful environment,' Abbasi said, standing with her fellow white-coated members of the Union of American Physicians and Dentists, which represents medical professionals working for the state.
Not awarding these raises will make it more difficult to hire doctors, Abbasi said, which could exacerbate another issue the union has been fighting: the replacement of state-employed physicians with contractors.
Representatives for the doctors union said contracted physicians can earn more than double than what state-worker counterparts make. But because these private employees often work temporary assignments, patients don't receive the same continuity of care that state doctors said they provide, Abbasi said.
The impact of salary freezes on recruitment and retention issues are also a major concern for state veterinarians.
Dr. Everardo Mendes, a veterinarian with the California Department of Food and Agriculture, said the state will struggle to hire new veterinary graduates if the government withholds raises that were agreed to the previous year.
'I didn't expect to be here,' Mendes said. 'I thought we had a contract.'
Mendes noted that his bargaining unit, which represents state scientists, went years without raises due to stalled negotiations between the state and California Association Professional Scientists, UAW Local 1115.
Now, Mendes is concerned he won't see raises another year.
Additionally, Newsom's return-to-office order was a major concern cited by protesting workers Thursday.
As an office technician, Carlyn Pipkins is on the lower end of the salary scale for state employees. With the expectation that she will return to office four days a week, Pipkins is expecting her day-to-day cost will increase.
The Department of Water Resources employee hopes lawmakers will reject the proposed salary freezes.
She said she was banking on a raise this year 'just to be able to live.'
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Elevance Health, Inc. (ELV) Downgrades 2025 Earnings Amid Rising Medical Costs
Elevance Health, Inc. (ELV) Downgrades 2025 Earnings Amid Rising Medical Costs

Yahoo

time7 minutes ago

  • Yahoo

Elevance Health, Inc. (ELV) Downgrades 2025 Earnings Amid Rising Medical Costs

We recently compiled a list of Elevance Health, Inc. stands third on our list among the most undervalued healthcare stocks. Elevance Health, Inc. (NYSE:ELV) is a major U.S. healthcare company, known for its insurance brands Anthem and WellPoint, and its growing Carelon health services arm. It serves around 45.6 million medical plan members and is recognized for integrating technology and value-based care to improve healthcare delivery. The company is facing increased healthcare utilization and rising medical costs, especially in the ACA and Medicaid segments. This has led to a downgrade in full-year 2025 earnings. A 'market-wide morbidity shift' is evident, with new ACA enrollees using emergency services at nearly double the rate of commercial members, and Medicaid patients showing higher acuity due to redeterminations. Amid these challenges, some investors see Elevance Health, Inc. (NYSE:ELV) as one of the most undervalued stocks in the healthcare sector, given its long-term positioning and strategic adjustments. The company expects a surge in elective procedures by Q4 2025 as members act ahead of expiring tax credits in 2026 that could raise their out-of-pocket costs. To address these pressures, the business is ramping up AI-driven tools for risk detection, care coordination, and operational efficiency. It's also expanding value-based care contracts, particularly in behavioral health and oncology, with over one-third of benefit expenses tied to risk-sharing models. The company is adjusting pricing strategies for ACA plans and advocating for Medicaid access amid potential regulatory changes. A healthcare professional discussing a treatment plan with a patient in an outpatient clinic. Though total membership fell by 212,000 in Q2 due to Medicaid attrition, the Medicare Advantage segment continues to grow. Elevance Health, Inc. (NYSE:ELV) is prioritizing long-term financial stability over aggressive member growth as it navigates rising costs, shifting regulations, and post-pandemic care patterns. While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Keybanc Hikes Spotify Technology S.A. (SPOT)'s Price Target To $860, Maintains Overweight Rating
Keybanc Hikes Spotify Technology S.A. (SPOT)'s Price Target To $860, Maintains Overweight Rating

Yahoo

time7 minutes ago

  • Yahoo

Keybanc Hikes Spotify Technology S.A. (SPOT)'s Price Target To $860, Maintains Overweight Rating

Spotify Technology S.A. (NYSE:SPOT) is among the 13 Best Global Stocks to Buy Right Now. On July 11, Keybanc lifted the stock's price target to $860 from $640, while maintaining an Overweight rating for its shares. The adjustment represents significant upside potential, given its share price of $674.46 at the close on July 23. Copyright: dennizn / 123RF Stock Photo The firm said that it expects Spotify Technology S.A. (NYSE:SPOT)'s second-quarter results and guidance for the third quarter to contain some variability related to foreign exchange, seasonal gross margin dynamics, and social charges. The analyst has advised investors to buy any near-term dips and reiterated that its core thesis remains intact. Keybanc believes that music is under-monetized in a price inflationary market with favorable competitive dynamics and several initiatives that support high-teens revenue growth. In other news, Deutsche Bank on Wednesday also raised Spotify Technology S.A. (NYSE:SPOT)'s target price to $775 from $700 and maintained a Buy rating for its shares. The Luxembourg-based company, which provides digital music-streaming services worldwide, has seen impressive returns in 2025, gaining 51% year-to-date. While we acknowledge the potential of SPOT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Small Cap Defense Stocks to Buy According to Hedge Funds and 13 Best Booming Stocks to Buy Now. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Vertex Pharmaceuticals Incorporated (VRTX) Launches JOURNAVX, First Non-Opioid Acute Pain Treatment
Vertex Pharmaceuticals Incorporated (VRTX) Launches JOURNAVX, First Non-Opioid Acute Pain Treatment

Yahoo

time7 minutes ago

  • Yahoo

Vertex Pharmaceuticals Incorporated (VRTX) Launches JOURNAVX, First Non-Opioid Acute Pain Treatment

We recently compiled a list of Vertex Pharmaceuticals Incorporated stands second on our list and has recently launched the first non opioid acute pain treatment. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), a global biotech firm based in Boston, is known for developing innovative treatments for serious diseases like cystic fibrosis, sickle cell disease, and beta thalassemia. The company is recognized for its strong pipeline targeting unmet medical needs. In July 2025, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) launched JOURNAVX (suzetrigine), a first-in-class, non-opioid treatment for moderate-to-severe acute pain. JOURNAVX, an oral NaV1.8 pain signal inhibitor, was named a 2025 Breakthroughs Innovation Celebration winner by Premier, Inc. It represents the first new class of pain medicine in decades and offers a safer alternative to opioids by directly targeting pain pathways without addiction risks. This launch marks a major advancement in pain management, aligning with public health efforts to reduce opioid use. JOURNAVX is especially relevant for acute pain scenarios such as post-surgical recovery and injury care. A closeup of pills in a pharmacy, representing the high quality medications of the company. Beyond acute pain, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) continues to expand its reach. Its next-gen cystic fibrosis therapy, ALYFTREK, received approval from the European Commission in July 2025, strengthening its global leadership in this area. The company is also advancing gene-editing therapies like CASGEVY for sickle cell and beta thalassemia, and is developing treatments for kidney disease, type 1 diabetes, and rare genetic disorders. While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store