State Has $4 Billion Liability for Workers’ Unused Leave Pay

Governor Jerry Brown did not include this in his “wall of debt,” but the state has an approximately $4 billion liability to its workers for another fringe benefit: a cash-out of unused leave time.

According to The Sacramento Bee, under the terms of contracts bargained last year, about 30,000 civil engineers, investigators and specified equipment operators can qualify to convert some leave time into dollars, and the state made the same offer to about 30,000 managers and supervisors. These payments must be made by the end of June, and likely will cost millions.

Last year, the legislative analyst said the state’s leave liability totaled $3.9 billion as of June 2013, and the figure is growing. This is on top of a very liberal pension system available to state workers, along with other fringe benefits. (Source: The Sacramento Bee, April 8.)

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