CA SB138

Approves memoranda of understanding between the state employer and State Bargaining Units 1, 2, 3, 4, 5, 7, 8, 10, 11, 13, 14, 15, 16, 17, 18, 19, 20, and 21, with provisions requiring expenditure of funds contingent on specific legislative appropriation

Requires state employees in Bargaining Units 1, 2, 3, 4, 5, 7, 11, 13, 14, 15, 16, 17, 19, 20, and 21 to participate in the Personal Leave Program 2025 (PLP 2025) from July 1, 2025, to June 30, 2027, receiving reduced pay in exchange for monthly leave credits

Suspends employee and employer monthly contributions for prefunding retiree health care benefits (other postemployment benefits) for the 2025-26 and 2026-27 fiscal years for multiple bargaining units, with phased restoration of contributions beginning July 1, 2027

Delays adjustments to employee retirement contribution rates for State Bargaining Units 2 and 19 from July 1, 2023/2026 to July 1, 2027, and suspends retirement contribution increases for Bargaining Unit 12 through June 30, 2027

Reduces Budget Act appropriations by $528,074,000 total ($227.5 million General Fund, $216.4 million special funds, $84.2 million other funds) pursuant to bargaining unit agreements, with PLP 2025 reductions exempting Legislative Counsel Bureau and State Auditor's Office employees