The State Worker

Chronicling civil-service life for California state workers

July 19, 2010
FPPC says interest-free loans for state workers are OK

20 dollar bill.jpgBee Capitol Bureau colleague Torey Van Oot reported that the Fair Political Practices Commission on Friday issued an advice letter to the Senate Banking, Finance & Insurance Committee that employees do not have to report no-interest budget impasse loans as gifts or income on their statements of economic interests -- as long as the loans are offered to all state employees who are members of the institutions.

FPPC drew up the letter after concerns arose in some quarters that at least one bank -- one of the many that didn't announce a no-interest state worker loan program earlier this month -- was telling state workers that such loans had to be reported.

For now, the matter is moot except for legislative employees, who get no pay until a budget is approved. Judge Patrick Marlette's decision on Friday means that the state won't withhold pay to the federal minimum for about 200,000 state employees for this month or next while litigation plays out in Sacramento Superior Court.

Still, we recommend you check out Torey's post on our sister blog, Capitol Alert, for more info and a link to the FPPC advice letter.


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About The State Worker

Jon Ortiz The Author

Jon Ortiz launched The State Worker blog and a companion column in 2008 to cover state government from the perspective of California government employees. Every day he filters the news through a single question: "What does this mean for state workers?" Join Ortiz for updates and debate on state pay, benefits, pensions, contracts and jobs. Contact him at (916) 321-1043 and at


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