The Governor’s Recommended Budget pays for 52,180 state positions. About 21 percent of the General Fund and lottery funds are spent on state positions and related costs, while approximately two-thirds of the state budget is sent out in special payments to fund staff in schools, local governments, or other activities outside of state government. That is why, when the General Fund is down due to a recession, the majority of the reductions in staff actually occur in other government sectors.

 

Within state government, most of the positions are in the University System and the Human Services area. The fastest growing area for state positions is in the Department of Corrections, which has more than doubled from 2232 positions prior to the passage of Ballot Measure 11 in 1994 to 4,535 positions for 2005-07. This growth pattern will continue as long as Ballot Measure 11 is in effect.

 

By law, the number of state employees is subject to a cap based on the state’s population. The limit equals 1.5 percent of the state’s population in the previous year. This budget’s proposed number of positions is well under the state cap and is more than 1,000 lower than the number of state positions in 2003-05.

 

The Governor’s 2005-07 Recommended Budget includes a $130 million General Fund package to pay for salary and benefit increases for state employees. The budget also includes funding for merit increases for eligible employees. Salary and wages, including funding for merit increases, were frozen for the last two years. In addition, significant changes were made to the state’s retirement system.