Senate passes radical budget with no pay raises
By Jonathan owens SEANC Director of Communications
The N.C. Senate passed a radical budget on June 19 that included no across-the-board raises for active employees and no cost-of-living adjustments for retirees, among other harmful provisions for state employees.
Despite touting a $400 million surplus, senators chose to lower taxes on big corporations rather than respect the hardworking men and women whose public services keep this state moving forward with a much needed pay raise. What’s more, a retiree cost-of-living adjustment could be paid through investment gains without adding to the bottom line.
If you’ll recall, the House passed a proposal that reflected a concern for the services provided by state employees, giving a 2-percent raise and 40 hours of bonus leave to active employees and a 2-percent COLAs to retirees.
Beyond the lack of across-the-board raises in the Senate budget, some of the most troubling aspects of negotiations surround the State Health Plan. Both the Senate and the House appropriated $0 for the State Health Plan and would allow the plan to spend down reserves, which were accumulated by cost-shifting to state employees and retirees
through premiums, premium surcharges, higher deductibles, higher co-pays and reduced benefits. In essence, state employees have prepaid for the employer contribution to their own health plan. That’s not a benefit at all.
To stay within budget, the State Health Plan would be forced to reduce benefits and increase premiums, deductibles and co-pays despite the Board of Trustees’ very conservative funding request. Rather than giving state employees a pay increase, the Senate budget actually cuts overall compensation because of State Health Plan changes.
With three plans on the table – from the House, Senate and the Governor – we are surely in for a long debate.
A continuing resolution was passed on June 30 to continue government operations beyond the July 1 start of the fiscal year. That resolution expires on August 14.
Getting this state back in the black after the recession has largely been paid for on the backs of state employees. Without a meaningful raise, your salary buys less now than it did before. Effectively, that’s a salary decrease.
SEANC will be advocating for at least the House’s proposal, which includes a 2-percent raise and 40 hours of bonus leave for state employees as well as a 2-percent costof-living adjustment for retirees.
jowens@seanc.org
House votes not to concur on harmful personnel bill
SEANC scored a resounding victory on June 17, when House members stood firmly in support of the integrity of the State Human Resources Act and voted 115-0 after Rep. Jeff Collins (R-Nash), the bill’s sponsor, made a motion not to concur with the Senate’s version of House Bill 495.
The bill cedes authority from the General Assembly to the State Human Resources Commission, allowing it to create policies with the effect of law with regard to priority and salary rights of separated employees.
Writing the laws on these rights and restrictions of employees has been and should remain the job of the General Assembly. The power given to the Commission by this bill is far too broad and exceeds reasonable limits for agency or commission power over taxpayers.
The State Human Resources Commission is not
a truly independent commission. The Office of State Human Resources’ website describes the Commission as adopting policies and practices “with the approval of the Governor.” The agency, and thus the Commission, belong to the governor’s office and answer to him, not the legislature. Ceding this power grants excessive powers to the Commission that should be reserved for the General Assembly. This bill is the antithesis of the regulatory reform efforts taken by the General Assembly in recent years.
SEANC lobbyists have spoken with House conference committee members and anticipate that the harmful provision will be removed. House conferees were named just after the June 17 vote, but the Senate had yet to name theirs as of press time.
PUBLIC POLICY
Quotes to Note
“Once you take (retiree health care) away, what incentive is there to work for the state?” said Chuck Stone, a SEANC lobbyist on health care issues. We are in a rush to have the worst State Health Plan coverage in the United States of America.”
“Neither the House nor Senate budgets appropriate an amount of money adequate to provide for health care inflation ... We hope that the Senate will take the sacrifices and the dedication of public employees into consideration.”
Director of Operations Chuck Stone, in an interview with the News & Observer for the June 26 story, “Future NC employees would not receive retirement health care under Senate budget.”
“In the privatization of jobs, when a company comes in, they have to make a profit and how will they make the profit? By cutting services in that department.”
District 7 Chairman Henry Belada, in a June 25 Morganton News-Herald story, “Agencies join forces to spread the word.”
Reporters piling up?
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THE REPORTER 1621 Midtown Place Raleigh, NC 27609
Jonathan owens, Editor-In-Chief
Beth Dew, Managing Editor alicia Miller, Associate Editor aManDa wise, Associate Editor
State Employees Association of North Carolina 1621 Midtown Place • Raleigh, NC 27609 Telephone 919-833-6436, 800-222-2758 www.seanc.org
SEANC accepts advertising material from companies and persons seeking to communicate with SEANC members. Acceptance of this advertising does not indicate SEANC approval or endorsement of any representation that the message, product or service is as represented by the advertiser. SEANC accepts no responsibility and shall not be liable for any use of or reliance on any such information, product or service. SEANC is a private entity and is under no obligation to carry advertisements of any nature, political or otherwise, that may be viewed as contrary to the interests of the association and its membership.
SCHOLARSHIP
SEANC AWARDS ANNUAL SCHOLARSHIPS
The SEANC Scholarship Foundation and SEANC districts across the state announced they are awarding more than $100,000 in awards; $38,500 of that is being given out by the statewide SEANC Scholarship Foundation to 47 welldeserving students. The five categories of statewide scholarships include:
Four-year financial — a $1,000 scholarship to attend a four-year college or university.
Four-Year Financial ($1,000)
Austin Taylor
Moriah Davis
Henderson School: East Carolina
University
Daughter of District 42
member Felicia Davis Dept. of Health and Human Services
Roanoke Rapids
School: UNC-Chapel Hill
Son of District 57
member Crystal Adams Dept. of Public Safety
Traniqua Felton
Elizabeth City School: East Carolina University
Daughter of District 69
member Angela Felton Dept. of Health and Human Services
Savannah Rollinson
Wanchese School: Meredith College
Daughter of District 68
member Allison Rollinson Dare County Schools
Kaleigh Kemp
Lansing
School: East Tennessee
State University
Daughter of District 8
member Anita Eldreth Dept. of Transporation
Tucker Lowery
Black Mountain School: Mars Hill University
Son of District 2 member
Michelle Lowery Dept. of Health and Human Services
Taylor Easter
Winterville
Brache’ Baucum-Porter
Winston-Salem
School: UNC-Charlotte
Son of District 16 member
Pamela Baucum
Winston-Salem State University
School: East Carolina University
Daughter of District 65
member Angela M. Easter East Carolina University
Aaliyah Warren
Kinston School: UNC-Greensboro Daughter of District 66
member Sandra Warren Dept. of Health and Human Services
Shaunee’ McLaurin
Laurinburg
School: UNC-Pembroke
Daughter of District 18
member Iris Lockhart Dept. of Public Safety
Four-year merit — a $1,000 merit scholarship to attend a four-year college or university.
Two-year financial — a $500 scholarship to attend a community college, technical school or trade school.
Two-year merit — a $500 merit scholarship to attend a community college, technical school or trade school.
Member only — a $500 scholarship awarded to SEANC members.
Jasmine Blair
Fayetteville
School: Campbell
University
Savannah Equils
Swan Quarter School: N.C. State University
Daughter of District 63
member Sherryll Dodge Dept. of Public Safety
Daughter of District 22
member Elaine Blair Dept. of Public Safety
Anjali Paintal
Raleigh
School: UNC-Chapel Hill
Daughter of District 45
member Amanjit Paintal Dept. of Environment and Natural Resources
Darnisha Pulley
Oxford
School: UNC-Charlotte
Daughter of District 21 member
Catherine Demming Dept. of Health and Human Services
Dylan Basilice
Harrisburg
School: Appalachian
State University
Son of District 10
member John Basilice Cabarrus County Schools
SCHOLARSHIP
Four-Year Merit ($1,000)
Alexander Spencer
West Jefferson School: N.C. State University
Son of District 8 member
Stephanie Spencer Ashe County Schools
Rachel Petherbridge
Garner
School: Boston University
Daughter of District 39 member
Donna Petherbridge N.C. State University
Francesco Giorgino
Raleigh School: N.C. State
University
Son of District 42 member
John Giorgino Dept. of Environment and Natural Resources
Ashley Weingartz
Greenville School: East Carolina University
Daughter of District 65
member Ann Weingartz East Carolina University
Peter Evans-Digre
Chapel Hill
School: Case Western Reserve University
Son of District 44 member
Laurie Evans N.C. Museum of Art
Rachel Hobbs
New Bern School: UNC-Chapel Hill
Daughter of District 67
member Karen Hobbs
Administrative Offices of the Courts
Hamza Baloch
Matthew Parker
Carthage School: N.C. State
University
Son of District 20 member
Michael Parker Retiree
Cary School: UNC-Chapel Hill
Son of District 37 member
Zahid Baloch Dept. of Transportation
Katelyn Vause
Connor Davis
Cullowhee
School: UNC-Chapel Hill
Son of District 1 member
Jeffrey Davis
Western Carolina University
Richlands School: Lenoir-Rhyne
University
Daughter of District 61
member Robert Vause Dept. of Transportation
Lena Hooker
Winston-Salem
John-Andrew Lovins
Lenoir
School: East Carolina University
Son of District 5 member
Andrea Lovins Retiree
School: Wake Forest
University
Daughter of District 16
member Pat Hooker
Davidson County Schools
Waverlea Brown
Goldsboro School: UNC-Chapel Hill
Daughter of District 60
Simone Knight Dept. of Health and Human Services
Nicholas Carroll
Wilmington School: UNC-Wilmington
Son of District 62
member Dean Carroll Dept. of Environment and Natural Resources
Support the SEANC Scholarship Foundation!
Remember to Check 1563 in the Combined Campaign!
Richard Hall, Jr. Fayetteville
School: UNC-Chapel Hill
Son of District 46
member Debra Hall Dept. of Revenue
(Continued on Page 6)
The SEANC Scholarship Foundation is included as one of the organizations you can contribute to through the State Employees Combined Campaign (SECC). This gives all SEANC members who wish to support the SECC an opportunity to designate a portion or all of their contribution to the SEANC Scholarship Foundation.
Please remember to support the SEANC Scholarship Foundation when you contribute your generous and thoughtful donation to the SECC. The SEANC Scholarship Foundation’s designation number is 1563.
SCHOLARSHIP
Two-Year Financial ($500)
Hayley Hall
Bladenboro
School: Cape Fear
Community College
Daughter of District 24
member Sherry Hall
N.C. State University
Taylor Bradshaw
Connelly Springs
School: Gaston College
Daughter of District 6
member Terry Bradshaw Dept. of Health and Human Services
Member-Only ($500)
Cassie Stewart Morganton School: Lees-McRae College
Member of District 6 Dept. of Health and Human Services
Rosa McAllisterMcRae
Raeford
School: Wingate University
Member of District 20
Sandhills Community College
Rashia Norman School: Fayetteville State University
Member of District 22 Dept. of Public Safety
Allie Scism Nebo
Mercedes Fordham
Concord
School: Capella University
Member of District 10
Dept. of Public Safety
School: Gardner-Webb University
Member of District 7
Dept. of Health and Human Services
Mary Parker
Rocky Mount
School: Nash Community College
District 46 member Dept. of Revenue
Christopher Diaz
Wilmington School: Cape Fear
Community College
Son of District 62
member John Diaz Dept. of Transportation
Megan Ennes
Natasha Farrington
Clayton
School: N.C. Central University
Member of District 27 N.C. Central University
Wilmington School: N.C. State University
Member of District 62 N.C. Aquariums
LaNatria Ellis
Shauna Burger Gastonia
School: Belmont Abbey College
Member of District 13 Central Piedmont Community College
Garland School: Argosy University
Member of District 24
Dept. of Transportation
Two-Year Merit ($500)
Lanna McKinney
Nebo
School: Western Piedmont Community College
Daughter of District 5 member Gary McKinney Dept. of Public Safety
Kayla Hardin
Marble
School: Tri-County
Community College
Daughter of District 1
member Lisa Hardin Tri-County Community College
Karly Moorefield
Morganton
School: Western Piedmont Community College
Daughter of District 6 member Lisa Moorefield Dept. of Health and Human Services
Thomas Cowan
Williamston
School: Florence Darlington Technical College
Son of District 65 member
Bonnie Cowan East Carolina University
Two from SEANC win SEIU scholarships
Service Employees International Union (SEIU), SEANC’s national affiliate, announced in June that two dependents of SEANC members won SEIU Lottery Scholarships to help further their education. A one-time $1,500 SEIU Lottery Scholarship was awarded to John Fraser of Pittsboro, the son of SEANC member Joseph Fraser of District 25 and a renewable $1,000 SEIU Lottery Scholarship was awarded to Darnisha Pulley of Oxford, the daughter of SEANC District 21 member Catherine Demming.
SEANC congratulates these winners and wishes them the best luck in their future endeavors.
— By Beth Dew
District 65 participated in the Pitt County Relay for Life May 15-16 at Boyd Lee Park in Winterville. The team consisted of SEANC members, their families and friends. They raised approximately $2,500 doing various fundraisers throughout the year that will go to the American Cancer Society. Pictured from left are Tanya Cannon, Adorian Bell, Tiffany Cannon, Joanne Tyson, Lynn Tuthill, Martha Latham, Inga Jones, Neichelle Bell, Cathy Collins, Bailey Cannon, LaRanda Boone, Stasia Austin, Debbie Austin, DeAnne Smith, James Chapman, Tiasia Andrews, Dorothy Andrews, Haley Clayborne, Lina Johnson and Lauren Arnold. Team members not pictured include Linda Sawyer, Linda Nelson, Alesia Warren, Kim Gutfield and Kendra McCurdy.
District 18 members Sharon Thompson and Deborah Christon, shown here with Member Action Coordinator
A.J. Albertson, won tickets to Carowinds on June 30 at a membership event at Southern Correctional Institution.
A highlight during District 65’s annual meeting was the presentation of $500 checks to Riley’s Army, Children’s Miracle Network and Greenville Community Shelter. Pictured are Casey Holland of Greenville Community Shelter, Caroline Wilkerson and Elise Ironmonger with Children’s Miracle Network and Kirk and Kelly Philpot with Riley’s Army.
PHOTO BY JOHNNY DAVISON
District 2 member Linda Pless with a new member at the DHHS Western Regional Office in Black Mountain.
PHOTO SUBMITTED BY LYNN
PHOTO SUBMITTED BY LYNN TUTHILL
PHOTO SUBMITTED BY AJ ALBERTSON
District 5 Chairwoman Sherry McCracken and Johnny Burnette attended lineup at Caldwell Correctional Institution in Lenoir on June 16 to speak about SEANC.
PHOTO BY JOHNNY DAVISON
Raleigh, NC
1621 Midtown Place
Raleigh, NC 27609
Senate cuts retiree health care for future workers
By Jonathan owens SEANC Director of Communications
It wasn’t enough for the Senate to thumb its nose at current and retired state employees in its out-of-touch budget. It also crippled the state’s chances of hiring good employees in the future, by cutting retiree health care benefits for anyone hired after Jan. 1, 2016.
State government wages have been stagnant for years, but good benefits have always been able to draw talented workers. The promise of health care at retirement is a major factor for many prospective workers. This change puts the state at a severe disadvantage in recruiting the best and brightest to work for the state.
No one is immediately affected by the change. No current workers would lose their benefits. But future employees, who may be willing to work for less if it meant good health care when they retire, will look elsewhere.
SEANC Director of Operations Chuck Stone, an expert on the State Health Plan, was interviewed by several media outlets about the cut. He pointed out several other bad provisions in both the House and Senate and major problems in the health plan in general.
The plan provides no help to workers who want to cover
SEANC needs you in Raleigh
SEANC’s Government Relations department is here to help with your visit with lawmakers. All you have to do is let us know you’re coming. Just email tbooe@seanc.org or call 800-222-2758 or 919-810-0272. If you can’t make it to Raleigh, call, write or email your legislators. Visit seanc.org/ legislators to find your representatives’ contact information.
their dependents and spouses. The state has always used the retirement benefit as a response to calls for dependent coverage. Now with this provision, even that benefit would disappear.
Both budgets call for the spending of reserves rather than adding funds to pay for the employer contribution next year – reserves that have been built up on the backs of state employees because of premium increases and surcharges.
Stone told N.C. Policy Watch, “Premium surcharges and other expenses associated with the State Health Plan have occurred, resulting in a cost shift to members of more than $1,300 on average per state employee – active or retired –each year.”
The provision will be a hot topic when the conference committee meets to hash out differences in the House and Senate budget plans.