FOR IMMEDIATE RELEASE
CONTACT: Eduardo Martinez (Portantino)
916-319-2044
December 11, 2008

California Cash Crisis Leads to First Bill of Special Session: Freeze All
Exorbitant Pay Raises
As state deficit grows by the second, legislator introduces bi-partisan legislation to immediately end all
compensation increases for top paid state employees

SACRAMENTO, CA – Joined by a bipartisan group of legislators, Assemblymember Anthony Portantino (D-La
Cañada Flintridge) introduced the first bill in the second extraordinary session (also known as the “special session”)
to prohibit any compensation increases for state employees who make over $150,000 per year. Democratic
Assemblymembers Tom Ammiano, Julia Brownley, Juan Arambula, Anna Caballero, and Sandre Swanson joined
Republicans Bob Huff, Chuck DeVore, Cameron Smyth, and Van Tran.

Under the legislation, AB 1 2X would impose a strict, categorical prohibition on any compensation increase for
state employees earning over $150,000. The legislation would allow the Governor to make exemptions to the salary
freeze for individuals “necessary for protecting the safety and security of the people of California”, but would
require him to explain why the increase is necessary. Due to California’s contractual obligations, AB 1 2X does not
apply to employees whose salary is governed by a memorandum of understanding (MOU) or another collective
bargaining agreement, nor does it apply to individuals employed in a classification that is subject to oversight by a
federal receiver (such as many employees in the Department of Corrections and Rehabilitation). AB 1 2X applies to
legislative and gubernatorial staff, but because voters approved Proposition 112 in 1990 which established the
independent California Citizens Compensation Commission, the salaries of the state constitutional officers (such as
Governor and Lt. Governor) and members of the Legislature can only be set by the Commission.

If approved by the Legislature and signed by the Governor, the measure would take effect immediately rather than
the normal effective date of January 1, 2010.