From a blog post by Jon Ortiz in The Sacramento Bee:

The California Foundation for Fiscal Responsibility has offered 10 ideas it says will save the state $5 billion each year. Most of the suggestions don’t cost state workers any out-of-pocket money. A few examples:

• Temporarily suspend earning of service years for pension benefits.
• Discontinue purchases of service (“airtime”) credits.
• Reduce compensated time off.
• Adopt a second-tier pension plan for new hires.

CFFR makes recommendations on how to reduce California’s budget deficit $5 billion annually; $300 billion over 30 years