THE
Publication of the State Employees Association of North Carolina • May 2009 • Vol. 27 No. 3 • Circulation 55,000
Senate Proposes Furloughs-Harmful to Working Families and Public Services By Mary Adelaide Bell Gov. Bev Perdue and Senate budget writers have both proposed budgets for the upcoming biennium. Although a two-year, $6 billion deficit is looming overhead and both budgets are balanced, one is significantly more poised to tackle the needs of North Carolina during this difficult financial time.
The Senate, however, took the easy way out by balancing their budget on the backs of working families. The Senate’s budget calls for an unlimited number of furloughs at the discretion of agency heads, as well as laying off 712 state employees. Senate budget writers have expressed a desire for even more cuts; Sen. Linda Garrou (D-Forsyth), one of the Senate’s chief budget writers, told The News & Observer she would cut more if she had “a magic wand.” Additionally, a bill has been filed to allow up to 20 furlough days per year, and legislators have expressed support for 12 furlough days per year. “I am extremely disappointed at the Senate’s obvious neglect toward the employees of this state,” said SEANC Executive Director Dana Cope. “The demand on public services – unemployment offices, community colleges – has increased drastically. For the Senate to answer that demand with a reduced workforce is ludicrous.” State employee furloughs could result in a 7.7 percent or higher pay cut – much higher than the 1.5
PHOTO BY Erica baldwin
The difference between the two proposals is the use of furloughs in the Senate budget. Gov. Perdue paused longevity pay for two years in order to avoid furloughs and mass pay cuts; layoffs were kept to a number that could be achieved through attrition.
Freshman Sen. Don Davis (D-Greene), left, and SEANC Executive Director Dana Cope meet outside of the Senate chamber on March 25 to discuss legislation affecting state employees.
percent to 4.5 percent in longevity pay state employees receive. While SEANC recognizes that longevity pay is a great benefit for career state employees, the association has run the numbers (see box below) and knows a longevity freeze, instead of furloughs, is the
most equitable solution for employees. The governor’s plan also offsets the loss of longevity play with bonus leave. Bonus leave can either be used in later years or saved until retirement and paid out in the final paycheck along with unused vacation pay. Thus, it increases the average final pay on which the retirement benefit is calculated.
Furloughs vs. Longevity Pay Breakdown
Although state employees with less than 10 years of service are not losing longevity pay, they are not gaining bonus leave.
Senate’s Proposal: Furloughs
Longevity pay is an important benefit to state employees, most of whom make less than the market rate. The association looks forward to working with the Perdue administration to ensure it is reinstated fairly and accurately in two years.
20 days/year – 7.7% base pay reduction
12 days/year – 4.7% base pay reduction
Governor’s Proposal: Longevity Freeze – 0% base pay reduction Years worked
Bonus leave
Longevity Pay
25+ years of service
94 hours
4.5%
20 but < 25 years of service
68 hours
3.25%
15 but < 20 years of service
48 hours
2.25%
10 but < 15 years of service
32 hours
1.5%
(earned each year 2010 & 2011)
As of press time, the House had not presented its budget proposal. None of these measures will be enacted until approved by the Senate, the House and the governor. Remember, the most important person your legislators hear from is you. Come to Raleigh on May 5 for SEANC Lobby Day. Share your story with your legislators, and remind them to put public services first. See page 7 for more information. mbell@seanc.org