July 2019 • Vol. 37, Issue 5
THE
REPORTER
State Employees Association of North Carolina
COOPER VETOES BUDGET WITH RAISES, RETIREE BONUS The House and Senate announced a state budget compromise on June 25 that prioritized state employee pay increases and included a bonus for retirees in each of the next two years. Three days later, Gov. Roy Cooper vetoed it. The compromise plan included raises for state employees that are higher than the average teacher raise for the first time in decades. Most state employees would receive a 5% increase over two years, as well as an additional five bonus days of leave. Neither the House nor the Senate included anything for retirees in their initial proposals. Action by SEANC members was credited with bringing the issue of retiree pay back to the table, eventually resulting in a 1% bonus over the next two years in the compromise. SEANC members reached out to their legislators in droves this summer to let them know that the Senate’s pay plan was better than the House’s plan. They also voiced their concerns over the lack of respect for retirees in either budget. “We are grateful that, for the first time in decades, the House and Senate prioritized state employee raises in the conference budget,” said SEANC President Jimmy Davis. “Thousands of SEANC members took grassroots action and contacted their legislators during this process. We appreciate that Speaker Moore and Senator Berger worked directly with SEANC to ensure that relief for retirees is included in
The two-year budget includes: »» The Senate’s pay proposal of a 5% raise for most state employees (2.5% per year). »» Five additional days of bonus leave. »» Teacher raises: an average of 3.9% over two years. »» Retiree raises: a 1% bonus (.5% per year). »» Non-certified school personnel: a 1% raise. »» Maintaining the Senate’s correctional officer bonus structure. Emails sent to legislators during the budget process: »» Active employees: 2,768. »» Retirees: 1,890. »» Legislators reached: All 170 (50 Senate and 120 House).
the report.” House and Senate leaders have said that they remained willing to negotiate with Gov. Roy Cooper on the final budget. SEANC will ask legislators and the Governor to reconsider the DHHS move to Granville County, a move which we strongly oppose. As of presstime, the House and Senate planned to hold votes to override that veto. Unlike years past, an override is not a forgone conclusion because Republicans do not have a supermajority.
Hospital executives holding out on joining the Clear Pricing Project Hospital executives are refusing to sign contracts that will reduce healthcare costs. State Treasurer Dale Fowell’s deadline for providers to sign contracts with the State Health Plan on the Clear Pricing Project for next year passed, on July 1. The Clear Pricing Project will save taxpayers more than $250 million and plan members more than $50 million in out-of-pocket expenses. The plan’s old network and reimbursement structure will remain in place until it expires on Jan. 1, 2020. As of June 28, stubborn hospital executives were holding out, hoping to
get their way and continue to overcharge state employees and retirees. More than 15,000 providers have signed on to the plan, including the state’s largest independent physicians clinic network, Community Care Physicians Network, and ECU Physicians. The list also includes MinuteClinic, Raleigh Orthopaedic and Tryon Medical Partners. However, the N.C. Healthcare Association (NCHA) advised hospitals not to speak to SEANC. SEANC Executive Director Robert Broome reached out to the CEOs of all 111 hospitals in June to discuss the plan.
Only seven of them responded. WBTV in Charlotte reported on June 24 that UNC Hospitals had used public funds to donate $58,633 to Partners for Innovation in Health Care, a dark money group set up by NCHA to fight the Clear Pricing Project. If they won’t listen to SEANC, surely they’ll listen to their patients! We need each of you to contact your local hospital to ask them to sign on to the State Health Plan next year. Visit ahcnc.org to find phone numbers for the hospitals in your area. After your call, please email us at info@seanc.org to let us know how your call went.