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The 2024-25 Budget: CalFire—Implementation of a 66-Hour Workweek

Legislative Analyst's Office · lao-4886 · Brief · 2024-03-19

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2024-25 BUDGET The 2024-25 Budget: CalFire—Implementation of a 66-Hour Workweek GABRIEL PETEK | LEGISLATIVE ANALYST | MARCH 2024 SUMMARY The Governor’s budget includes $199 million ($197 million from the General Fund) and 338 positions in fiscal year 2024-25 to begin implementing a shift to a 66-hour workweek as contemplated in a 2022 memorandum of understanding (MOU) with the union representing firefighters from the California Department of Forestry and Fire Protection (CalFire). The costs of the proposal would increase in the coming years as CalFire phases in the changes, rising to $770 million ($756 million General Fund) on an ongoing annual basis and 2,457 permanent positions by 2028-29. Prioritizing firefighters’ health and welfare is a worthwhile goal, and pursuing this outcome through the concept of reducing firefighters’ workweek was a reasonable step for the Legislature to take when it approved the MOU in September 2022. However, both the cost of adopting a 66-hour workweek and the extent of the state’s revenue shortfall still were unknown at that time. The magnitude of the proposal the administration has now presented to the Legislature shows that it would create a substantial new ongoing General Fund commitment. This proposal comes at a time when the state faces a large, ongoing budget problem. As such, the Legislature faces a key decision as to whether or not implementing the proposal is affordable given the state’s current fiscal condition. If the Legislature is not certain that the General Fund can sustain the proposal right now, we recommend that it not move forward with funding the change as part of the 2024-25 budget. Deferring implementation would provide the Legislature with greater flexibility in the future to determine its preferred course of action in light of potentially evolving budget conditions, while still sustaining its long-term commitment to improving the health and wellness of the state’s firefighters. We also offer suggestions for interim, less costly steps the Legislature could consider taking to support firefighters if it were to delay implementation of the workweek change. If, however, the Legislature wants to prioritize General Fund for implementing this change beginning in 2024-25, we recommend it add reporting language to help ensure that the proposal maximizes the potential for associated wildfire resilience-related co-benefits. BACKGROUND CalFire’s Main Responsibilities state consists of both developed and relatively rural lands (generally not wildlands) for which fire CalFire Has Responsibilities for Fire response services are the responsibility of local Response and Resource Management. CalFire jurisdictions. In some cases, local jurisdictions has primary responsibility for wildland fire response contract with CalFire to provide fire protection and in State Responsibility Areas, which are mostly other services on their behalf. In addition to its roles privately owned wildlands that encompass about related to fire response, CalFire also has various one-third of the acreage of the state. The federal responsibilities for the management and protection government is responsible for wildland fire of the state’s forests. response on federal lands. The balance of the www.lao.ca.gov 1 2024-25 BUDGET Trends in Wildfires and the driest Figure 2 shows the average number CalFire’s Budget of wildfires by month across the last five years compared to the ten-year average, along with the Major Wildfires Have Occurred Over the number of wildfires by month in the severe 2018 and Past Several Years. As Figure 1 shows, most of 2020 wildfire seasons. As the figure shows, wildfire California’s largest and most destructive wildfires activity is relatively low from December through have occurred in recent decades. This trend has March and reaches its peak from June through been particularly notable in the last several years, August each year. While generally fewer wildfires which have seen some of the worst wildfires in occur in the fall (as compared to summer), these the state’s recorded history. For example, the fires can be particularly severe because forests are 2018 wildfire season included the Camp Fire in Butte dry after little to no rainfall during the summer, as County, which became the single most destructive well as due to other autumn weather conditions such wildfire in state history with nearly 19,000 structures as high winds. destroyed and 85 fatalities, including the near-total Increase in Wildfires Has Led to Concerns destruction of the town of Paradise. A few key factors About State’s Preparedness and Demands have contributed to the recent increase in large on Firefighters. Recent increases in large and and destructive wildfires, including climate change, severe wildfires have raised concerns about the poor forest and land management practices, and state’s capacity to adequately respond to these increased development in fire-prone areas. growing threats, particularly when multiple large While Annual Wildfire Seasons Have wildfires occur simultaneously as has happened Lengthened, Strong Seasonal Pattern in recent years. Responding to these large and Still Exists. Despite recent years having severe wildfires has imposed significant burdens particularly large and destructive wildfires on firefighters—many of whom have been required and concerns about wildfires becoming a to work long stretches without breaks. This, in turn, year-round phenomenon, the occurrence of has led to concerns about the mental and physical wildfires in California continues to have a strongly health and wellness of the firefighters who are on seasonal pattern—primarily occurring during the the frontlines of these events. These issues have summer and fall months when the weather is been highlighted in the media—such as in a series of articles published in Figure 1 2022 by CalMatters. California's Largest and Most Destructive Legislature Has Wildfires Have Occurred in Recent Decades Taken Various Actions to Respond to Concerns. The Legislature has 9 taken a number of 8 actions in response to 20 Largest 7 20 Most Destructive these growing concerns, 6 including to improve the 5 health and wellness of 4 firefighters. For example, 3 in the 2020-21 and 2 2022-23 budgets, the 1 Legislature approved proposals—totaling roughly 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s 2020sa $170 million per year on an ongoing basis—to provide a Includes wildfires that occurred from January 2020 through February 2024. relief staffing for CalFire. 2 LEGISLATIVE ANALYST’S OFFICE 2024-25 BUDGET in improving forest and Figure 2 landscape conditions in recent years, including Even in Recent Years, Wildfires Have Rarely Occurred in the Winter providing $2.8 billion from Number of Fires 2020-21 through 2023-24 as part of a series of 700 budget packages, as well as authorizing the 600 2020 continuous appropriation of $200 million annually 500 from cap-and-trade program revenues 400 through 2028-29 to 2018 Ten-Year Average support wildfire resilience 300 activities. These investments—which we 200 Five-Year Average discuss in more detail in our February 2024 100 report, The 2024-25 Budget: Crafting Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Climate, Resources, and Environmental Budget Solutions—are aimed in large part at reducing The main goal of these augmentations was to the susceptibility of the reduce the strain on firefighters by making it easier state’s forests and landscapes to catastrophic for them to take time off, such as for vacations wildfires, which should indirectly reduce the strains and training activities. (We discuss these staffing on firefighters. expansions in further detail later in this brief.) CalFire Budget and Staffing Have Increased Also, as part of the 2019-20 budget, the Legislature Substantially in Recent Years. Driven by approved a proposal that provided $9 million augmentations such as those discussed above, annually and 25 positions to augment various we estimate that CalFire’s total base wildfire employee health and wellness programs at CalFire. protection budget has nearly tripled over the past In recent years, the Legislature also has ten years (from $1.1 billion in 2014-15 to $3 billion in approved various increases in fire response 2023-24). As shown in Figure 3 on the next page, capacity more broadly, such as adding new CalFire’s overall budget also has increased, with fire crews at CalFire and partner agencies and its combined budget for fire protection, emergency funding new helicopters and other aircraft. (We fire suppression, and resource management and summarize many of these augmentations in our fire prevention more than doubling over the past 2022 publications, The 2022-23 Budget: Wildfire ten years (from $1.7 billion in 2014-15 to $3.7 billion Response Proposals and The 2022-23 California in 2023-24). Correspondingly, CalFire’s staffing Spending Plan: Resources and Environmental levels also have increased significantly over the Protection.) By augmenting fire response capacity, past decade. Specifically, between 2014-15 and the state provided resources to enable CalFire to 2023-24, the number of positions that CalFire respond more quickly and forcefully to wildfires. categorizes as related to fire protection increased This, in turn, was intended to help keep fires from from 5,756 to 10,275, and the total number of growing and exacerbating, thereby avoiding placing positions at the department grew from 6,632 to more severe strains on firefighters. Finally, the 12,000 (representing roughly an 80 percent state also has made unprecedented investments increase in both cases). www.lao.ca.gov 3 2024-25 BUDGET (Pursuant to federal law, Figure 3 212 hours is the maximum number of work hours allowed State Spending on CalFire during a 28-consecutive-day Has Grown Significantly in Recent Years period before overtime must (In Millions) be paid.) This compensation structure results in 19 hours $6,000 in a typical workweek (or 76 hours in a 28-day pay 5,000 period) being paid at 1.5 times Resource Management 4,000 and Fire Prevention an employee’s hourly rate for scheduled overtime, referred 3,000 Emergency to as Extended Duty Week Fire Suppression 2,000 Compensation. We estimate that scheduled overtime makes 1,000 Base Fire Protection up roughly one-third of the total base pay for most common 2005-06 2007-08 2009-10 2011-12 2013-14 2015-16 2017-18 2019-20 2021-22 2023-24 firefighter classifications. CalFire = California Department of Forestry and Fire Protection. For example, the salary range for an entry-level, seasonal Firefighter I position is roughly Current Structure of CalFire’s $3,700 to $4,600 per month, plus an additional Workweek, Staffing, and $1,800 to $2,300 in scheduled overtime. Operational Models Employees receive additional pay for unplanned CalFire’s current workweek, staffing, and overtime for any time worked in excess of 72 hours operational models are dictated in large part by in a workweek, which also is paid at 1.5 times an the department’s service needs, which include employee’s hourly rate. Unplanned overtime is used providing 24-hours per day, 7-days per week to backfill staff that take vacations or engage in coverage on a year-round basis, as well as training exercises, as well as to engage in certain augmented response capacity during peak wildfire emergency response activities. season. We discuss these current structures in CalFire Generally Uses a 3.11 Staffing further detail below. Factor for Permanent Firefighters. To provide CalFire Currently Operates on a 72-Hour round-the-clock coverage and allow each firefighter Workweek. CalFire firefighters have a different to take four days off per week, CalFire must hire work schedule than most other state employees. more than one person to cover each fire response To facilitate providing round-the-clock coverage, position (referred to as a “post”). Historically, firefighters typically work—on average— CalFire used a staffing factor of 2.33, meaning the four 72-hour workweeks in a 28-consecutive-day department would hire 2.33 firefighters for each cycle. A 72-hour workweek typically consists of post position in order to provide coverage seven three consecutive 24-hour days (during which days per week. As a result of the recent relief firefighters usually sleep at the station), followed staffing augmentations mentioned above, CalFire by four days off. currently is in the process of moving towards Under Current Workweek, Firefighters a new standard staffing factor of 3.11 for most Receive Significant Compensation post positions. Under this new staffing factor, the From Both Scheduled and Unplanned department would hire 3.11 firefighters for each Overtime. CalFire employees working a post to provide coverage seven days per week as 72-hour workweek receive overtime pay well as for when firefighters take time off (such as for all hours worked in excess of 212 hours for vacations, sick leave, or training). during the 28-consecutive-day workperiod. 4 LEGISLATIVE ANALYST’S OFFICE 2024-25 BUDGET CalFire fire engines generally are staffed with three has relatively few professional prerequisites. personnel at all times. Since each of these positions In contrast, attaining the rank of Fire Captain is considered a post that must be covered, it would requires significant firefighting experience, take 9.33 personnel to staff each engine if a 3.11 including serving for roughly three years as staffing factor were applied to each of the positions. a Fire Apparatus Engineer. Additionally, the CalFire’s Current Staffing and Operational various classifications also carry notable Models Have Various Other Key Features. differences in pay and benefits—we estimate Besides the workweek and staffing factors, other that Fire Captains earn roughly 50 percent important features of CalFire’s current staffing and more per month than Fire Fighter Is and Fire operational models include the following: Apparatus Engineers earn roughly one-third more per month than Fire Fighter Is. (Fire • Engines Currently Staffed With Mix of Fighter Is also are less costly for CalFire to Classifications, Including Temporary employ because they work a maximum of nine Staff. As mentioned above, CalFire’s fire months per year rather than year round.) engines generally are staffed with three • CalFire Operates Three Staffing Periods. personnel at all times. At least one of Currently, CalFire operates three staffing these three personnel is required to be a periods—base, transitional, and peak. The Fire Captain or Fire Apparatus Engineer number of fire engines, air attack bases, and (positions referred to as “company officers”). helitack bases that the department activates For example, a fire engine may be staffed varies across these three periods based on with a Fire Captain and two Fire Fighter Is projected fire risk. For example, during peak or a Fire Apparatus Engineer and two Fire season—which typically extends from roughly Fighter Is. As we display in Figure 4, these June through early October—CalFire operates personnel have different qualifications and 356 fire engines, 12 air bases, and 10 helitack duties. For instance, a seasonal Fire Fighter I bases. In contrast, during the base Figure 4 staffing period—which typically extends from Qualifications, Duties, and Pay Differ roughly December Across CalFire’s Firefighter Classifications through March— CalFire operates Company Officer Classifications Other Key Firefighter Classifications 65 engines and no aerial resources. Between the base and peak periods, CalFire operates what it refers to as a transitional staffing period. During these times of year, the number of fire engines and aerial Fire Captain Fire Apparatus Engineer Firefighter II Firefighter I • Permanent employee • Permanent employee • Permanent employee • Temporary employee resources are ramped • Manages fire station • Operates fire trucks, leads • Member of fire crew • Member of fire crew and supervises fire crews assigned fire crew under supervision under supervision up and ramped • Typical minimum • Typical minimum • Typical minimum • Typical minimum qualifications: qualifications: drivers qualifications: drivers license qualifications: 18-years old 18-years old and capable of down. (We display the license and three years and eight months as a and three months of physical duties as a Fire Apparatus Engineer firefighter firefighting experience • Estimated monthly number of fire engines • Estimated monthly • Estimated monthly • Estimated monthly payª: $6,200 payª: $9,300 payª: $8,300 payª: $7,500 that CalFire typically operates each month a Estimated monthly pay calculated assuming average of the salary range for the position and scheduled overtime. Does not in Figure 7 on page 13 include unplanned overtime. CalFire = California Department of Forestry and Fire Protection. of this brief.) www.lao.ca.gov 5 2024-25 BUDGET • CalFire Currently Rotates Personnel Unit 8 MOU Included 66-Hour Workweek Individually Rather Than as a Group. Provision—Contingent on a State Budget Currently, CalFire firefighters rotate on and off Appropriation. Under the agreement, the state of their shifts individually rather than together and union agreed to reduce the CalFire firefighter as a group “platoon.” For example, on a given workweek from 72 hours to 66 hours—a 24-hour fire engine, one firefighter may work Monday, reduction per 28-day pay period. The MOU set Tuesday, and Wednesday; whereas another this change to take effect on November 1, 2024— will work Tuesday, Wednesday, and Thursday; notably, after the expiration date of the agreement— and a third will work Wednesday, Thursday, and subject to an appropriation in the 2024-25 and Friday. For this reason, the same team budget. The agreement required that a joint of firefighters typically does not staff a fire labor management committee be established to engine together for more than one or two determine the changes needed to implement the days a week. reduction, including hours of work, shift patterns, retention and recruitment, and classifications. Unit 8 and Recent MOU The agreement further required the committee Unit 8 Represents Most CalFire Personnel. to present to the Director of the Department of Under state law, state employees regularly Finance a mutual agreement by July 1, 2023, to undertake collective bargaining with the Governor be included in the Governor’s budget proposal in (as represented by the California Department January 2024. Notably, the MOU specified that of Human Resources) over their compensation. if the Governor declares a fiscal emergency and State workers (except managers and certain General Fund monies over the 2024-25 Governor’s others) are organized into 21 bargaining units and budget’s multiyear forecasts are not available to represented by unions. The product of the collective support the reduction to a 66-hour workweek on an bargaining process is an MOU, which specifies the ongoing basis (including the estimated direct costs terms and conditions of employment. To take effect, and any increases in the cost of overtime driven MOUs must be ratified by union members and the by the proposal), the parties agreed to reopen the Legislature. Unit 8 (CalFire Local 2881) represents provision regarding how and when to implement the most of CalFire’s positions, such as Fire Captains, workweek reduction. Fire Apparatus Engineers, Fire Fighter IIs, and Fire Governor Intends to Declare Fiscal Fighter Is. (CalFire’s positions that are not covered Emergency and General Fund Is Facing Very by Unit 8 mostly consist of its administrative and Large Out-Year Deficits. Due to a deteriorating support positions, such as Associate Governmental revenue picture relative to expectations, both Program Analysts and Office Technicians.) our office and the administration anticipate that Legislature Approved Current Unit 8 MOU in the state faces a significant budget problem. September 2022. The Legislature approved the Specifically, in January our office estimated most recent MOU with Unit 8 in September 2022 that the Governor’s budget addressed a with the passage of Chapter 250 of 2022 (AB 151, $58 billion problem. More recent fiscal data we Committee on Budget). This MOU is in effect summarize in our February publication, The through June 2024. A successor agreement likely 2024-25 Budget: Deficit Update, indicate the will be submitted to the Legislature for ratification in budget outlook continues to worsen. We now the coming months, although the precise timing is estimate the state has a $73 billion deficit to not yet known. As we discussed in our August 2022 address with the 2024-25 budget. To address analysis of the Unit 8 MOU, the agreement included the budget problem, the Governor proposes various provisions such as providing a 6.6 percent a combination of actions including spending general pay increase over two years, adding reductions, fund shifts, delays, reserve withdrawals, additional pay for employees with long tenures cost shifts, and revenue increases. Notably, while and certain education qualifications, increasing the Governor has not yet declared a formal budget reimbursements for transit and vanpools, and emergency, the structure of the proposed solutions changing the workweek, as discussed further below. assumes that a declaration will be forthcoming in 6 LEGISLATIVE ANALYST’S OFFICE 2024-25 BUDGET the next few months. Specifically, the proposed problem facing the state, both our office and the withdrawals from reserve accounts—a key part of administration estimate that based on current the Governor’s budget balancing plan—are only revenue forecasts, the state will face significant allowable with a budget emergency declaration. structural operating shortfalls—at least $30 billion Moreover, in addition to the immediate budget annually—from 2025-26 through 2027-28. GOVERNOR’S PROPOSAL Includes Roughly $200 Million—Growing wildfire response-related positions; (2) salaries and to Over $750 Million Ongoing—From the benefits for adding new support staff, including General Fund to Implement a 66-Hour administrative personnel and maintenance staff; Workweek. The Governor’s budget includes (3) additional overtime (including both scheduled $199 million ($197 million from the General Fund) and unplanned) for firefighters and other wildfire and 338 positions in fiscal year 2024-25 to begin response-related classifications; (4) 235 new implementing a shift to a 66-hour workweek as vehicles, as well as costs for vehicle leases, contemplated in the 2022 MOU with Unit 8. The maintenance, radios, and equipment; (5) various costs of the proposal would increase in the coming augmented aerial support-related contracts, such years as CalFire phases in the changes, rising to as for contracted pilots and mechanics at airbases; $770 million ($756 million from the General Fund) (6) one-time special repair funding to address on an ongoing annual basis and 2,457 permanent maintenance needs at CalFire facilities; (7) training positions by 2028-29. As shown in Figure 5 on center costs; and (8) proportional funding for the next page, these costs include (1) salaries contract counties. and benefits for adding new firefighter and other ASSESSMENT Addressing Firefighter Fatigue and In adopting the Unit 8 MOU, along with the various other actions it has taken in recent years to Welfare Is a Worthwhile Goal address concerns about the health and wellness of Workweek Change Aims to Address firefighters, the Legislature has demonstrated that it Legitimate Concerns About Firefighter Welfare. prioritizes this issue. The state has experienced some of the most severe wildfire seasons in its history in recent Legislature Faces Decision About years. As discussed previously, these wildfires Whether Proposal Is Affordable have placed significant strains on the state’s Prioritizing firefighters’ health and welfare firefighters, many of whom have been asked to work through the concept of reducing their workweek for extended periods with few breaks. These long was a reasonable step for the Legislature to take periods of work have been difficult for firefighters in September 2022. However, at the time that the as well as for their families. By switching from a Legislature approved the current Unit 8 MOU, 72-hour workweek to a 66-hour workweek, the both the cost of adopting a 66-hour workweek typical schedule for a firefighter would include and the extent of the state’s revenue shortfall still roughly one fewer 24-hour shift per month than is were unknown. The magnitude of the proposal currently the case. This, in turn, could provide some the administration has now presented to the additional time off for firefighters, thus helping to Legislature shows that it would create a substantial address the legitimate concerns about fatigue that new ongoing General Fund commitment. have resulted from these recent wildfire seasons. www.lao.ca.gov 7 2024-25 BUDGET Figure 5 Summary of 66-Hour Workweek Funding Proposal (Dollars in Millions) 2024-25 Ongoing Positions Amount Positions Amount Salaries and Wages 338 $28.3 2,457 $191.9 Fire Response Positions 231 $19.5 2,075 $162.1 Fire Apparatus Engineer 104 7.6 1,352 98.7 Fire Captain 105 8.6 594 48.7 Battalion Chief 10 0.9 59 5.5 Heavy Fire Equipment Operator 10 0.8 40 3.3 Assistant Chief 6 1.1 24 4.3 Forestry Fire Pilot 5 0.6 15 1.7 Aviation Officer III 5 0.7 5 0.7 Reduction of Firefighter I Costs -14 -0.8 -14 -0.8 Support Positions 107 $8.8 382 $29.8 Associate Governmental Program Analyst 56 4.2 302 22.7 Staff Services Manager I 5 0.4 34 3.0 Heavy Equipment Mechanics 25 2.0 25 2.0 Direct Construction Supervisor I 21 2.1 21 2.1 Overtime — $13.9 — $122.3 Scheduled Overtime — 9.5 — 83.6 Unplanned Overtime — 4.4 — 38.8 Staff Benefits — $28.4 — $206.4 Operating Expenses and Equipment — $20.0 — $125.8 Contracts for Aircraft Staffing and Maintenance — $15.1 — $15.1 Vehicles Purchases, Leases, and Repair — $48.5 — $14.8 Training Center Costs — $33.2 — $7.7 Special Repairs — $5.3 — — Contract County Proportional Share — $6.3 — $86.4 Totals 338 $198.9a 2,457 $770.4b a $197 million from the General Fund and $2 million from reimbursements and various special funds. b $756 million from the General Fund and $14 million from reimbursements and various special funds. This proposal comes at a time when the state faces First, the workweek change would not be a large, ongoing budget problem. As such, the implemented until after the expiration of the MOU Legislature faces a key decision as to whether or and the administration’s estimate only included not implementing the change in the workweek is costs for activities occurring during the term of affordable given the state’s current fiscal condition. the MOU. Second, the joint labor management We discuss these issues in further detail below. committee was given relatively broad discretion Legislature Did Not Have Information About regarding how to structure implementation of the Cost Implications When It Considered MOU. new provision, but the committee was not even When the administration submits an MOU to the formed until after the MOU was ratified. These Legislature for consideration, it typically prepares factors precluded the Legislature from having an estimate of the associated costs. In the case of detailed information about the ultimate costs of the Unit 8 MOU, however, the administration’s cost implementing the 66-hour workweek change when estimate did not include the costs of the 66-hour it considered the MOU. Notably, at the time our workweek provision for a couple of reasons. office analyzed the MOU, we estimated that the 8 LEGISLATIVE ANALYST’S OFFICE 2024-25 BUDGET 66-hour workweek provision likely would be costly the number of firefighters the state employs, the for the state. However, we were only able to provide proposal would contribute to the need to build a a broad sense of the potential costs—which we new CalFire training center, which is estimated to stated were likely to be in the range of hundreds of cost roughly $420 million. millions of dollars annually—given the uncertainty Fiscal Conditions Have Deteriorated Since regarding how the provision ultimately would the Legislature Considered the MOU. When be effectuated. the Legislature considered the Unit 8 MOU in Structure of MOU Workweek Provision Is September 2022, the state’s fiscal condition Unique. The provision of the Unit 8 MOU that and outlook looked significantly better than they establishes a 66-hour workweek differs from how do currently. Specifically, around the time the policy changes typically are handled through the 2022-23 budget was enacted, both our office and collective bargaining process in a few notable the administration anticipated the state’s budget ways. First, the provision establishes a large policy would be roughly balanced over the coming years. change that affects how the state compensates Since that time, revenue projections have declined its employees and how the state combats wildfires precipitously. For example, the administration’s with minimal detail and significant deference to revenue forecasts for 2023-24 and 2024-25 are the joint labor management committee process. more than $70 billion lower than they were in June Second, the provision has very large fiscal effects 2022—and our office’s projections are even worse. that are not incurred until after the labor agreement This revenue erosion has resulted in significant has expired, making it impossible to know the projected deficits both in the budget year and full fiscal effect of the current MOU at the time out-years, as discussed previously. of legislative ratification. Third, as we discuss in Legislature Maintains Flexibility Over more detail below, the provision specifies that Implementing MOU Based on State’s Funding implementation of the policy change is subject to Capacity. The provisions of MOUs are always legislative appropriation in the 2024-25 budget— subject to appropriation, as the Legislature has the an explicit acknowledgment of the Legislature’s fundamental constitutional “power of the purse.” budget authority and its ability to revisit, modify, However, as referenced above, MOUs typically do or reject the policy in the future. None of these not include language explicitly declaring this to be three characteristics are standard of a typical the case. The fact that the Unit 8 MOU explicitly MOU provision. mentions this condition seemed to emphasize that Costs of Workweek Change Turning Out to the Legislature might need to weigh the capacity Be Very High. The cost of the administration’s of the General Fund to support the costs of the proposed approach to effectuating the 66-hour change beginning in 2024-25. Also, regardless of workweek change is substantial—$770 million the intent of the language in the MOU, no particular ($756 million from the General Fund) when fully Legislature may “bind the hands” of a future implemented. This proposal would result in a Legislature by requiring a future appropriation. roughly 20 percent increase in CalFire’s budget As such, even though it approved the Unit 8 MOU, and staffing levels compared to 2023-24. (As the Legislature still has flexibility around whether mentioned previously, total funding and staffing to provide funding to implement this proposal— in 2023-24 already reflect significant increases as with any other proposal the committee and compared to historical levels.) As noted, only administration might put forward. limited information was available on the details and Governor Is Inconsistent in Pulling Back implications of the 66-hour workweek when the Some Commitments While Retaining 66-Hour Legislature approved the MOU, so it may not have Workweek Change. The administration putting expected the associated costs to be this high. The forth this workweek proposal despite the 66-hour workweek change also could create cost budget shortfall—and thereby deferring to the pressures for the state that are not reflected in the Legislature to decide whether the General Fund proposal. Most notably, by significantly increasing can sustain the associated costs—deviates from www.lao.ca.gov 9 2024-25 BUDGET its approach to various other state commitments. However, in practice, if the Legislature chooses to Notably, in light of recent deteriorations in the appropriate the proposed funds to implement the condition of the General Fund, the Governor change as part of the 2024-25 budget, delaying is proposing to pull back numerous other implementation through the collective bargaining commitments that the state made in recent process likely will be difficult and result in some years. For example, the Governor is proposing to other concessions to affected employees that eliminate the existing telework stipends that have would increase state costs. Deferring to the been provided to many state employees—even collective bargaining process for adjusting the though these stipends also were agreed upon in workweek provision also would constrain the negotiations with numerous bargaining units— Legislature’s role in being able to shape any to save a much smaller amount than the cost potential modifications, since its only involvement of the 66-hour workweek proposal ($26 million with MOU agreements is a “yes” or “no” vote on General Fund annually). Additionally, the Governor ratification. In contrast, if the Legislature were is proposing various budget solutions in the climate, to defer approving funding for implementing the resources, and environmental areas—including 66-hour workweek, it would give the parties the reductions, delays, and fund shifts—to achieve opportunity to reopen discussions on that provision $4.1 billion in savings to address the 2024-25 as part of the upcoming negotiation process, budget problem. These proposals would pull such as to consider an alternative implementation back multiple funding commitments that were time line or put forward alternative and less costly made over the past few years, including reducing options to address firefighter welfare. It also well over $1 billion in funding that has already would give the Legislature the opportunity to been appropriated. (We discuss these proposed independently explore whether it would like to solutions in greater detail in our February 2024 implement other approaches to addressing its report, The 2024-25 Budget: Crafting Climate, concerns about firefighter health and wellness Resources, and Environmental Budget Solutions.) instead of the workweek change. Accordingly, Given the condition of the General Fund, we not funding the workweek proposal in 2024-25 is think it is both reasonable and necessary for among the only effective avenues available to the the Legislature to revisit all its previous budget Legislature if it wants to maximize its authority and commitments—including those the Governor flexibility to consider alternative approaches. proposes revising and those he would leave Withholding Approval Would Allow intact—to determine whether they still are among its Legislature to Adjust to Future Budget highest priorities for available funding. Conditions. The flexibility provided by not approving the proposal in 2024-25 would allow Withholding Approval of Funding in the Legislature to revisit the choice regarding 2024-25 Could Have Some Notable whether to implement the 66-hour workweek Advantages change in a future year when the General Fund There are a few reasons why it could be has greater capacity, including potentially with beneficial to the Legislature to withhold its approval modifications as needed or desired. In contrast, if of funding to implement the workweek proposal in the Legislature approves the proposal now and the 2024-25, as we discuss further below. budget condition does not improve, it may be in a position of having to make even steeper cuts to Withholding Approval Would Preserve other activities (or raising taxes by an even larger Legislative Flexibility to Revisit Approach. amount) to sustain this new funding commitment As discussed previously, the MOU includes in the out-years while facing multibillion-dollar language allowing for the reopening of when and annual deficits. how to implement the change in the workweek through future collective bargaining negotiations if the Governor declares a budget emergency and the General Fund cannot sustain the costs. 10 LEGISLATIVE ANALYST’S OFFICE 2024-25 BUDGET Withholding Approval Would Enable Revised would struggle to hire a sufficient number of Fire MOU to Incorporate Various Details That Have Captains to implement the workweek change if Yet to Be Bargained. Withholding approval of the department were to continue with its current funding for the 66-hour workweek also would give staffing model. As shown earlier in Figure 4, the collective bargaining process more opportunity working for at least three years as a Fire Apparatus to work out specific details of the policy so that the Engineer is a prerequisite for being eligible to be Legislature and public can be more aware of the hired for a Fire Captain position. Under CalFire’s totality of the proposal and the details can be fully current engine staffing model, the department incorporated into a revised MOU. For example, the employs roughly three Fire Captains for every current MOU does not incorporate any changes two Fire Apparatus Engineers. According to the to the number of hours firefighters would be paid administration, this imbalance has resulted in an for scheduled overtime, despite the fact that inadequate pipeline of qualified staff to fill Fire firefighters would be working fewer hours under Captain positions. The administration believes that the proposal. If a revised MOU were to come back adding large numbers of additional firefighters to to the Legislature for consideration in a future year, reduce the workweek without changing the current the negotiating parties could consider whether staffing model would exacerbate this imbalance and overtime pay policies for firefighters also should be result in an unworkable shortage of Fire Captains. adjusted in tandem with the workweek change. Proposed Approach Would Greatly Increase Share of Experienced, Year-Round Staff, Proposal Has Large Resulting in Higher Costs. The administration Operational and Other Impacts proposes to create a larger pipeline to Fire Captain The main intent of the proposal is to change positions by creating far more Fire Apparatus the CalFire workweek from 72 hours to 66 hours. Engineer positions than would otherwise be However, as we discuss further below, it goes well necessary. Specifically, the administration beyond just hiring proportionately more personnel proposes two actions that together have the to implement this change. Instead, the Governor effect of significantly increasing the number of also proposes making various changes to CalFire’s Fire Apparatus Engineer positions relative to other staffing and operational models—with significant firefighter classifications, both of which have associated costs. Additionally, the proposal also notable cost implications: has potential indirect impacts on both CalFire and • Increases Share of Seats on Engines Filled other partner agencies, such as local governments, by More Experienced, Year-Round Fire which are not fully understood at this time. Apparatus Engineers. As shown in Figure 6 Administration’s Proposed Approach Driven on the next page, under the proposal, by Goal of Addressing Imbalance in Ratio of CalFire would use Fire Apparatus Engineers Positions and Increasing Staff Development to fill many of the posts that currently are Pipeline. The administration argues that it filled by entry-level, seasonal Fire Fighter Is. cannot reduce the workweek simply by adding For example, an engine that currently is proportionately more firefighting staff. Instead, in staffed at any given time with a Fire Captain addition to hiring additional firefighters overall, the and two Fire Fighter Is might instead be administration also proposes to modify various staffed by a Fire Captain, Fire Apparatus other aspects of CalFire’s staffing model to address Engineer, and Fire Fighter I. a current problem with its staff development • Increases Number of Positions Hired to pipeline. Specifically, the proposal makes two Cover Each Fire Apparatus Engineer Seat key changes—discussed below—with the on an Engine. In addition to changing the primary intention of increasing both the number staffing mix on an engine during a particular and proportion of Fire Apparatus Engineers the shift, the proposal also would change the department employs. The administration’s primary number of Fire Apparatus Engineers CalFire rationale for these changes is a concern that it hires to cover an engine across multiple shifts. www.lao.ca.gov 11 2024-25 BUDGET (As discussed earlier, the number of positions hired to cover a particular post Figure 6 across multiple shifts is referred to as a staffing Proposal Would Change Mix of Personnel and factor.) This proposed Increase Number of Personnel Covering Each Seat on Engine change also is illustrated in Figure 6. Specifically, Personnel Covering Each Shift under the proposal, Current Personnel Covering an Engine Proposed Personnel Covering an Engine four people would be employed to cover each Fire Apparatus Engineer post rather than 3.11, as is the current policy. (As displayed, the Seat 1 FC or FAE SSeeaatt 22 FFFFII SSeeaatt 11 FFCC SSeeaatt 22 FFAAEE proposal also would increase the current staffing factor for Fire Fighter I positions from 2.33 to 3.11.) Seat 3 FFI SSeeaatt 33 FFI Fire Fighter I The net result of these changes is that the proposal not only increases overall CalFire staffing levels by roughly 20 percent but also makes very significant changes Personnel Staffing Each Engine Across Multiple Shifts to the mix of personnel Personnel Covering an Engine Personnel Covering an Engine employed by the department. Under Current Staffing Factors Under Proposed Staffing Factors Notably, the proposal would roughly double the number of Fire Apparatus Engineers employed by the department, while decreasing the number of Fire Fighter I positions. This, Seat 1 SSeeaatt 22 FFFFII (2.33) SSeeaatt 11 FFCC (3.11) SSeeaatt 22 FFAAEE (4) FC or FAE (3.11) in turn, has very large fiscal implications because Fire Apparatus Engineers are much more costly for the department SSeeaatt 33 FFFFII (2.33) SSeeaatt 33 FFI (3.11) compared to Fire Fighter Is, Fire Fighter I both because their pay and benefits are more substantial and because they work more months per year. Approach Has Various FC = Fire Captain; FAE = Fire Apparatus Engineer; FFI = Fire Fighter I. Cascading Impacts on CalFire’s Operational Model. The addition of over 2,000 new firefighters combined with the shift towards a much 12 LEGISLATIVE ANALYST’S OFFICE 2024-25 BUDGET higher share of firefighters being more experienced platoon model (subject to further bargaining year-round staff would have notable operational with Unit 8). Under this approach, firefighters implications for CalFire, including the following: would rotate on and off duty together as a group rather than individually. For example, • Would Increase the Number of Fire Engines an engine might be staffed by a team made Staffed Year-Round. The expanded ranks up of a Fire Captain, Fire Apparatus Engineer, and higher share of permanent (rather than and Fire Fighter I on Monday, Tuesday, and seasonal) firefighters would allow CalFire Wednesday; a separate trio of individuals to modify when it staffs its fire engines. on Wednesday, Thursday, and Friday; and a Specifically, instead of its current model of third group on Friday, Saturday, and Sunday. three staffing periods—base, transitional, and Notably, under this model, some days would peak, as discussed earlier—CalFire would have overlapping groups of two teams working move to two staffing periods—base and on the same day. peak—as shown in Figure 7. Also, the peak staffing period would be extended to nine Proposed Changes Could Have Indirect months rather than five months. Furthermore, Impacts on Other Agencies. In addition to the the number of fire engines that would be direct impacts on CalFire operations, the workweek staffed during the base period would more change could potentially have indirect impacts on than double—153 versus 65. CalFire and other partner agencies, many of which • Would Adopt a Platoon Staffing Model. may not be fully understood yet. For example, In addition to moving the department towards currently, many local agencies have contracts greater year-round staffing of engines, the with CalFire to provide local fire protection and additional permanent personnel would allow emergency services. If the proposal is approved, CalFire to adjust its staffing rotation to a we expect these agreements ultimately may need to be modified to reflect that (1) more personnel will be Figure 7 needed to fill each seat on a fire engine because of Proposal Would Increase Number of the higher staffing factors Fire Engines Staffed Year-Round and (2) each fire engine Typical Number of Engines Staffedª will be staffed with a mix of relatively more costly 400 personnel than is currently Current the case. These changes 350 Proposed could result in higher 300 costs for these local agencies and potentially 250 make it less advantageous 200 for some of them to contract with CalFire 150 for services. 100 50 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec a Timing of the ramp up and ramp down in staffed engines can vary somewhat from year to year. www.lao.ca.gov 13 2024-25 BUDGET Legislature Could for addressing these issues are not particularly Explore Other Options clear. Additionally, the proposal would not affect many of the underlying challenges associated As we discussed previously, addressing the with being a firefighter. Specifically, under this welfare of firefighters is a worthwhile goal. However, proposal, firefighters still would have to deal with particularly given the state’s fiscal condition, the the various inherent strains of the job, including Legislature could consider other ways to address doing physically and emotionally strenuous work. this underlying concern as an alternative to Moreover, even with a shorter workweek firefighters changing the workweek. Furthermore, even if the still would be expected to work regular 72-hour Legislature wants to proceed with implementing a shifts and still would have to be available to serve 66-hour workweek, it could consider modifying the potentially much longer periods during severe approach proposed by the administration. wildfire events. Degree to Which Proposal Will Address Most Cost-Effective Way to Address These Concerns About Firefighter Wellness Is Unclear. Firefighter Wellness Concerns Is Unclear. Given At a high level, the administration’s proposal to the lack of clarity around the strains affecting reduce the workweek would result in the state firefighters and the best ways to address them, hiring many more firefighters and each firefighter the Legislature could consider alternatives working the equivalent of one fewer 24-hour shift besides changing the workweek. For example, per 28-day pay period. This has the potential the Legislature could expand the existing health to improve conditions for firefighters since they and wellness programs at CalFire to ensure will receive some extra time off relative to their that firefighters have access to robust support current schedules. Also, because the proposal for mental and physical health concerns. Other would result in higher overall staffing levels at changes the Legislature could explore include CalFire, it could increase firefighting capacity and implementing policies that prohibit firefighters thus somewhat reduce the amount of overtime from working more than a certain number of days any individual firefighter might be asked to work. in a row (potentially paired with expansions in However, the extent to which the change would the use of mutual aid with partner agencies to improve firefighters’ overall health and wellness is offset potential losses in fire response capacity) uncertain. This is in part because—as discussed or decrease the number of hours worked in the in the nearby box—the nature of the health and offseason (such as through reducing or eliminating wellness challenges facing firefighters is not fully planned offseason overtime, as was done prior to understood, and thus the most effective strategies Lack of Clarity Regarding Nature of Problem With Firefighter Welfare A general recognition exists that the health and wellness of firefighters is a concern— particularly in light of recent severe and destructive wildfire seasons. However, the scope of the issues facing the California Department of Forestry and Fire Protection’s (CalFire’s) firefighters still is unclear, as data on key metrics such as the incidence of post-traumatic stress disorder, other mental health issues, and suicides are limited. Additionally, despite the increasing concerns about the health and wellness of firefighters, CalFire reports that its employee retention rates have remained largely stable over time and firefighting positions appear to continue to be very attractive to new employees. To date, CalFire has not provided evidence that it has faced challenges attracting firefighters to work at the department. For example, CalFire reports that it currently has three times more applicants for entry-level Fire Fighter Is than available positions, suggesting that health and wellness concerns are not dissuading people from pursuing this profession. 14 LEGISLATIVE ANALYST’S OFFICE 2024-25 BUDGET a change that occurred in 2006-07). Additionally, hours were covered entirely through the Legislature could consider using some of the scheduled overtime, this would essentially funding that would be required to implement the result in firefighters working a similar amount 66-hour workweek change to instead support as they currently do, but shifting some of efforts to improve conditions in the state’s forests. those hours to be classified as overtime. Such investments potentially could provide Such an approach likely would have the long-term benefits to firefighters—as well as to the effect of increasing the net compensation for environment and surrounding communities—by firefighters—and therefore state costs—but reducing the likelihood of the severe wildfires that we expect that the overall costs would be create the most significant strains on firefighters. less than the Governor’s workweek proposal. Each of these actions would involve trade-offs, but A major drawback to this approach is that they remain available options for the Legislature to even though it might increase firefighter explore if desired. compensation, it would not reduce their total Other Ways to Implement a 66-Hour work hours to the same degree, and thus Workweek. The administration indicates that it might not provide the desired health and does not believe any other viable approaches to wellness benefits. reducing the workweek exist apart from the one it • Addressing the Fire Captain Shortage presents in its proposal. However, if the Legislature Through Other Approaches. The Legislature wants to move forward with implementing a could consider adding firefighters to 66-hour workweek in accordance with the MOU, implement the 66-hour workweek but taking we have identified a number of other approaches other, less expensive actions to address the for doing so—although none is without trade-offs. Fire Captain imbalance. As noted above, many For example, the Legislature could consider: of the administration’s proposed changes— and associated costs—result from increasing • Reducing Relief Staffing. The Legislature the number of Fire Apparatus Engineers to could consider reducing the workweek at least encourage a bigger development pipeline in part by dropping the engine staffing factor for Fire Captains. The Legislature could back to 2.33 (the level prior to the changes instead adjust CalFire’s existing classification approved in 2020-21 and 2022-23). Under requirements, or create a new classification. this approach, the additional personnel that For example, the Legislature could look into CalFire currently is in the process of hiring creating a Lieutenant classification as a rank to implement a 3.11 staffing factor could between Fire Captain and Fire Apparatus instead be used to provide coverage for a Engineer, which could enable Fire Apparatus reduction in the workweek. This could allow Engineers to promote more quickly. This, in the department to shorten the workweek turn, would mean that fewer Fire Apparatus without adding such significant new costs. Engineer positions would be necessary to A major drawback to this approach is that create an adequate staff development pipeline maintaining a lower staffing factor would deny for higher-level positions. The Legislature firefighters the benefit of additional capacity also could direct CalFire to try to recruit to cover time off for vacations, training, and Fire Captains from other agencies. Even other activities. It also could potentially result if this required increasing the Fire Captain in some additional overtime compared to salary to make it more attractive, such an current plans. approach could potentially be less expensive • Increasing Scheduled Overtime. The than significantly expanding the number of Legislature could consider using scheduled Fire Apparatus Engineers beyond what is overtime to meet at least some of the reduced necessary to effectuate the workweek change. workweek hours. If the reduced workweek www.lao.ca.gov 15 2024-25 BUDGET If the Legislature Approves Proposal, …And Wildfire Resilience Activities Currently Important to Maximize the Benefits Not Well-Tracked. CalFire does not systematically track the amount of time its crews spend on Given the important goals—and very large wildfire resilience work versus other pursuits, which costs—of the Governor’s 66-hour workweek makes verifying the extent to which firefighters proposal, if the Legislature moves forward with actually spend time on these activities difficult. approving it, ensuring that the change provides Moreover, while CalFire currently tracks and reports as much value as possible to the state will be the overall number of acres treated as a result of important. Below, we discuss how the Legislature activities undertaken by the department, it does can facilitate this objective through requiring not report a break out of how many acres were additional tracking and reporting. treated directly by CalFire personnel—either by Proposal Has the Potential to Improve firefighting crews or by dedicated fuel reduction Wildfire Resilience, but Actual Benefits crews—compared to those treated by partners Will Depend Upon Implementation… The that receive grants administered by CalFire. administration’s proposed approach to decreasing Absent such information, determining whether the workweek to 66 hours would result in the state changes in the number of acres treated are a hiring over 2,000 additional permanent firefighters result of additional activities being conducted upon full implementation. These firefighters would by firefighters—including personnel added as a work on a year-round basis even during months result of the 66-hour workweek proposal—or stem when relatively few wildfires occur. In principle, from other state investments (such as the funding when not fighting fires, these personnel should be provided in recent wildfire resilience packages) available to perform other priority activities, such will continue to be challenging. Should it fund the as thinning forests and conducting prescribed workweek change, the Legislature could use it as burns to improve the resilience of the state’s an opportunity to hold CalFire more accountable forests. Importantly, however, the level of wildfire for achieving demonstrable wildfire resilience resilience benefits that ultimately are achieved will co-benefits by requiring more detailed reporting depend heavily on the extent to which the additional on (1) how CalFire firefighters spend their time, firefighters actually conduct this wildfire resilience including the amount of time spent on wildfire work in practice. resilience activities, and (2) the number of acres treated by CalFire firefighters. RECOMMENDATIONS Evaluate Whether Adopting New 66-Hour could be reopened if the Governor declares a Workweek Is Affordable at This Time Given fiscal emergency. We therefore recommend the Significant General Fund Shortfall. We Legislature decide whether or not to fund this recommend the Legislature not treat the decision change in 2024-25 based on its evaluation of the about whether to fund the implementation of a merits of the proposal, taking into account the 66-hour workweek as one that has already been information it now has on the costs of implementing made. As noted, the MOU was structured to the change and the condition of the General Fund. provide the state with the flexibility to weigh the Given the state budget deficit, we recommend state’s fiscal condition when determining whether the Legislature reassess all its previous budget or not implementation of this change should commitments—including those the Governor proceed—including by explicitly making it subject proposes revising and those he would leave to a legislative appropriation and by including intact—to determine whether they still are among language that negotiations over the provision its highest priorities for available funding. 16 LEGISLATIVE ANALYST’S OFFICE 2024-25 BUDGET Notably, given the recent deterioration in the Deferring providing funding now also could allow condition of the General Fund, we expect that the forthcoming collective bargaining process to difficult budget decisions may lie ahead for the consider changes—which is unlikely to occur if the Legislature. Specifically, based on current revenue Legislature proceeds with appropriating the funding projections, to bring the budget into balance over in 2024-25. The administration could come back the next few years, the Legislature will have to adopt to the Legislature sometime after the next round of some combination of ongoing program reductions MOU negotiations—such as in 2025-26 or a future and tax increases totaling at least $30 billion. year—with a similar or revised implementation Accordingly, we recommend that the Legislature proposal as part of a future MOU. This revised weigh whether the benefits of the 66-hour MOU could, for example, incorporate various details workweek proposal are sufficient to prioritize that have yet to be bargained so it better reflects funding it beginning in 2024-25, recognizing the totality of the change. The negotiations also that doing so likely will come at the expense of could revisit other potential options for reducing cutting other existing ongoing commitments more the workweek, such as using other approaches deeply and/or raising taxes more significantly to improve the pipeline to high-level positions than would otherwise be the case. instead of substantially increasing the share of If Uncertain Whether General Fund Can Fire Apparatus Engineer positions. The Legislature Support Proposal, Do Not Approve in 2024-25… could then consider whether to approve a revised Several factors contribute to uncertainties around MOU and fund the change to a 66-hour workweek whether the General Fund can sustain this proposal when the administration presents them to the in the coming years, including its high costs, current Legislature again. projections of budget-year and out-year deficits, and …And Consider Other Options for Addressing lack of clarity regarding future economic conditions. Firefighter Wellness Concerns. If the Legislature Moreover, as noted, the Legislature did not have were to defer action on the proposed workweek comprehensive cost estimates or information on change, we recommend it explore supporting the operational implications of the proposal when it other, less costly, steps to address concerns approved the concept of the workweek reduction about firefighter health and wellness in the interim. through ratifying the MOU. Should the Legislature For example, some changes the Legislature could determine that these concerns require a more consider include (1) various options for expanding cautious approach to adopting this substantial existing health and wellness programs at CalFire operational change with myriad impacts at this time, to ensure that firefighters receive adequate we recommend it consider deferring approval of professional support when they experience times funding for the workweek reduction to a future year. of crisis, (2) policies to reduce the number of hours (In practice, this would mean rejecting the proposal firefighters work in the offseason and/or the number without prejudice in 2024-25.) This option would of hours firefighters work per shift during severe provide the Legislature with the flexibility to sustain wildfires, and (3) additional support for projects its long-term commitment to the goals of addressing to improve forest conditions and make the state’s firefighter health and wellness, but also account for landscapes more resilient to the catastrophic the state’s current fiscal realities. The Legislature fires that impose the most strain on firefighters. could then reevaluate the concept of implementing The Legislature also could consider providing a the 66-hour workweek change in the future when small amount of dedicated funding to support the state’s budget condition improves. independent research to better understand the Delaying implementation also could offer other scope of problems with health and wellness among benefits, including providing additional time for the CalFire firefighters, such as the underlying causes Legislature to consider potential modifications to and most promising approaches for cost-effective the proposal (such as alternative ways to address solutions. Such research could help inform future the Fire Captain pipeline challenges) and to gather decisions regarding whether reducing CalFire’s information on the possible indirect implications workweek is the optimal approach to improving (such as on contracts with local agencies). firefighter health and wellness. www.lao.ca.gov 17 2024-25 BUDGET If Legislature Wants to Proceed With important information to help the Legislature Implementation This Year, Consider Adding assess how the newly approved personnel are Reporting Language. If the Legislature determines being used and ensure that they are maximizing that reducing CalFire’s workweek is among its the wildfire resilience co-benefits that can be highest priorities for the General Fund this year, achieved. (While we think this information would be we recommend it adopt provisional budget bill particularly important if the Legislature significantly language requiring the administration to track the expands CalFire staffing, the Legislature may want wildfire resilience co-benefits of the proposal— to consider requiring such a report regardless including the time firefighters spend on wildfire of its action on this proposal, as it also could resilience work and the amount of resilience help improve overall understanding of wildfire work completed by CalFire’s firefighters—and to resilience co-benefits achieved by existing wildfire report this information on an annual basis to the response staff.) Legislature. Such an annual report would provide CONCLUSION The landscape has evolved markedly in a few Given this altered context, the Legislature faces key ways since the Legislature approved the a key decision as to whether the General Fund Unit 8 MOU and the change to CalFire’s workweek can sustain implementing the proposed change in in September 2022. First, the condition of the CalFire’s workweek in the near term, recognizing General Fund has deteriorated significantly in the that doing so could well come at the expense of intervening months, making it much more likely making offsetting reductions to ongoing programs that the state will need to adopt significant budget elsewhere in the budget and/or adopting tax reductions and/or revenue increases. Second, increases. If the Legislature is not certain that the magnitude of the costs and implications of the the General Fund can sustain the proposal right 66-hour workweek change have become much now, we recommend that it not move forward clearer. We now know that when fully implemented, with funding the change as part of the 2024-25 the proposal would have very large state costs, budget. Deferring implementation would provide eventually totaling over $750 million annually from the Legislature with greater flexibility in the future the General Fund. Additionally, the administration’s to determine its preferred course of action in proposed approach would have significant effects light of potentially evolving budget conditions, on CalFire, resulting in a roughly 20 percent while still sustaining its long-term commitment increase in the department’s budget and staffing to improving the health and wellness of the levels and expanding its operations during months state’s firefighters. We also offer suggestions for that are relatively low-risk for wildfires. These interim, less costly steps the Legislature could changes would, in turn, have various direct and consider taking to support firefighters if it were to indirect operational impacts on both CalFire and delay implementation of the workweek change. other partner agencies. These impacts—some of If, however, the Legislature wants to prioritize which are still not fully clear—were certainly not General Fund for implementing this change apparent to the Legislature when it approved the beginning in 2024-25, we recommend it add Unit 8 MOU. reporting language to help ensure that the proposal maximizes the potential for associated wildfire resilience-related co-benefits. 18 LEGISLATIVE ANALYST’S OFFICE 2024-25 BUDGET www.lao.ca.gov 19 2024-25 BUDGET LAO PUBLICATIONS This report was prepared by Helen Kerstein with assistance from Nick Schroeder, and reviewed by Rachel Ehlers. The Legislative Analyst’s Office (LAO) is a nonpartisan office that provides fiscal and policy information and advice to the Legislature. To request publications call (916) 445-4656. This report and others, as well as an e-mail subscription service, are available on the LAO’s website at www.lao.ca.gov. The LAO is located at 925 L Street, Suite 1000, Sacramento, California 95814. 20 LEGISLATIVE ANALYST’S OFFICE