THE
P ublication of the S tate E mployees A ssociation of N orth C arolina • A ug . 2010 • V ol . 28 N o . 4 • C irculation 55,000
SEANC Protects State Employees’ Jobs and Benefits in Tough Times
Furloughs, Layoffs and Pay Cuts Stopped Days before the budget came up for a vote, a threat of 20 hours of mandatory furloughs for all state employees was floating around the legislature. SEANC was able to keep the hours out of the final proposal, though the legislature gave the UNC system authority to furlough their employees. SEANC also helped state employees dodge pay cuts and broadbased layoffs for the second year in a row with multi-billion dollar budget deficits. Jobs Saved This year, SEANC saw employees of the deaf and blind schools and advocates like recreational therapist Kim Stewart, who spoke at lobby day, have their services and jobs restored as members and staff showed legislators the results of their jobs – essential services to North Carolinians, such as the children and physically challenged they serve, who count on them every day. Political Favoritism at UNC System Prevented SEANC worked for the passage of a “Mary Easley” provision that requires the university system to report personnel actions and pay increases to the Office of State Personnel and the Office of State Budget Management quarterly – a requirement that didn’t previously exist which will help prevent favoritism such as Mary Easley’s 88 percent pay raise in 2008. Due Process and SPA Protections Maintained SEANC, who believes employees are innocent until proven guilty, was able to get a provision passed in the ethics bill that would protect employees’ information during investigations into personnel matters. State Personnel Act (SPA) protections, which are a target every session, were also maintained this year.
By Doranna Anderson, District 47, and Mary O’Neill, District 39
The Democratic leadership paralyzed any changes in the State Health Plan this year, including moving oversight away from the legislature and striking the body mass index penalty set to begin next July, by refusing to vote on the bills in committee. See more on page 2.
On July 9, when we got the emergency call from SEANC Lobbyists Ardis Watkins and Suzanne Beasley to come to the General Assembly, we Anderson O’Neill didn’t hesitate. We knew it was important to have us – real-live state employees – by their side in the last hours of the legislative session. You see, legislators were still working on two bills that would greatly affect us – and you: 1) An ethics bill attempting to open the floodgates on our privacy (including files with medical information relating to personnel actions) and 2) An amendment defining how agencies determine 1 percent cuts. So after working a full day, we headed to Jones Street. And there we stayed until 4 a.m. We’ll admit, we got a little punchy. Chocolate and caffeine came to our rescue at 2:30 a.m. But we were there to do important work. Unless you’ve experienced it, you’ll never know how crazy the legislative process is. We sat in session, as our lobbyists sat outside the chamber doors listening online strategically positioning themselves to talk with key legislators who emerged. We helped them literally chase down important legislators to ask for their support. It’s a lot of work, and our lobbyists should be applauded for doing this day-in and day-out every session. They accomplish a lot with their expertise and passion for our issues. When you go to the General Assembly, you really understand that legislation changes quickly. Negotiations happen on the chamber floors and in closed-door meetings. One word can change our fate. As members, we put a face on the legislation. Legislators seemed surprised to see us there, especially in the wee hours of the morning. But we wanted them to know their actions directly affect us, and we wanted accountability from our elected leaders. At the end of the day…er, in the early morning hours…our privacy was protected in the ethics bill. Unfortunately, politics won over policy with the 1 percent agency cuts. The House passed the amendment requiring agencies to consider cutting operational expenses before positions, with strong support from both parties, but the Senate (especially Republicans) wouldn’t budge. We encourage SEANC members to take part in the legislative process. It’s exciting. It’s exhausting. It affects our way of life. Our dues are well worth the professional representation SEANC offers. Come to Raleigh next session and see for yourselves – armed with chocolate and caffeine, of course.
ebaldwin@seanc.org
danderson83@nc.rr.com, ncst8_lady@yahoo.com
By Erica Baldwin
For the first time in seven years, the state legislature approved a final budget by the start of the July 1 fiscal year – a $19 billion budget that, in the midst of an economic downturn, spared the vast majority of state employees from major job losses, furloughs and pay cuts, thanks to SEANC’s work around the clock. Budget provisions and other legislation affecting state employees and retirees include the following:
Our All-Nighter at the General Assembly
Privatization Blocked Privatization of prison maintenance staff is now prohibited. Retirement Funding Raided The retirement system took one of the biggest hits, losing another $139 million in state pension fund monies – meaning the fund will need $310 million to stay properly funded. In a pension fund that’s designed to pay for its own benefit increases – and has fallen short due to years of minimal or no employer contributions – even more funding will be needed for cost-of-living adjustments and employer contribution increases in future years. 1% Agency Cuts Enacted The General Assembly ordered 1 percent budget cut in all agencies – giving managers flexibility to make the cuts. These “contingent” cuts were ordered effective July 1, even though Congress could provide $519 million to North Carolina that would make these cuts unnecessary. SEANC worked to get a provision to require agencies to slim down administrative costs and vacant positions before cutting jobs, but legislators refused even though a similar provision exists for local school administrative units. Privatization Study The legislature ordered the Department of Correction to develop a pilot program to study privatization of probation services. SEANC will work to make sure probation problems are fixed and better funded, instead of being farmed out. State Health Plan
THE REPORTER AUGUST 2010
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