The California State Assembly approved six labor contracts that will cover 50,000 state employees for the next two years. The contracts will end furloughs, increase employee pension contributions and cut pay for a year. The agreements are estimated to save around $179 million next year, less than the $308 million that the Legislature was hoping for. Supporters of the contracts said that the savings will amount to $350 million over two years, and that employees will have to work longer. Similar contracts were approved by the Legislature under the previous governor.
See "Legislature OKs six state workers contracts", Marisa Lagos, San Francisco Gate, May 16, 2011