July 2020 • Vol. 38, Issue 5
THE
REPORTER
State Employees Association of North Carolina
Legislative session ends amid lingering uncertainty In one of the strangest General Assembly short sessions in memory, legislators left an appropriated pay raise for most state employees intact but remained reluctant to approve any new spending – leaving some employees without an increase for the second-straight year. The General Assembly finally adjourned at around 2:30 a.m. on June 26. The adjournment resolution was effective July 7. Legislators are expected to return for another session on Sept. 2. There was no traditional budget process (a hallmark of most sessions) due
to uncertainty surrounding COVID-19 and the expected loss of revenue. Legislators did not make major changes with a projected shortfall of $4 billion looming. The good news for most state employees is that meant the 2.5% pay increase in last year’s budget remained. Those who work in departments and agencies received the increase on July 1. SEANC attempted to get increases for university and community college employees, as well as non-certified school personnel, but legislators were unwilling
to commit to any new spending. Last year, Gov. Roy Cooper vetoed bills that would have given higher education employees raises, claiming those raises weren’t large enough. And yet, this year Cooper did not come up with a budget proposal of his own and did not call for a raise for these employees. Likewise, an attempt to pass a bill for a 2% cost-of-living adjustment for retirees died in committee because it required a $96 million appropriation. A bill to fully fund the retirement system did pass.
Other bills that passed of note: • S635 contains language for a pilot project for updated technology in prisons. This technology would improve the way correctional staff track behavior and activity. There is also a contact tracing component which would be helpful in keeping track of COVID-19 outbreaks in prison facilities. • H1218 adjusted the funding levels for the retirement system to remain fully funded by the General Assembly. • H308 contained an extension on return to work for retirees in positions where there is emergency need for experienced workers due to the pandemic. The six-month break in service requirement has been temporarily suspended. • S818 provides a one-time $350 bonus for teachers and has language that encourages Gov. Cooper to use some of his COVID-19 federal funds to provide an extra $600. The $600 would include non-certified school employees.
SEANC gives citizens a voice in proposed New Hanover hospital sale SEANC has been at the forefront of the fight to oppose the sale of New Hanover Regional Medical Center (NHRMC) in Wilmington, which would mean higher costs and lower quality of care for more than 42,000 State Health Plan members in southeastern North Carolina. A poll commissioned by Save Our Hospital found that 70% opposed selling NHRMC and 76% wanted to maintain operations as they are. Yet there has been little input sought by the group studying the sale or county commissioners. SEANC partnered with Save Our Hospital, a grassroots organization of concerned citizens, to host a virtual town
hall event on June 29 that included more than 60 concerned citizens, legislators and county officials. Spence Broadhurst, chairman of the Partnership Advisory Group (PAG), defended the process, which has included little-to-no public input. A week later, the PAG voted unanimously to recommend a deal from Novant Health totaling more than $4.5 billion for the hospital. This is unacceptable. Such an important decision should not be rushed and railroaded through in the middle of a global pandemic. What the public wants very much matters, and what the public wants is to keep their
hospital locally owned. The hospital is financially healthy, yet its leaders refused to join the State Health Plan’s Clear Pricing Project, an initiative led by State Treasurer Dale Folwell to make health care more affordable and keep prices from going up for state employees and retirees, even though it would have made money by signing on. Also, if another entity comes in and pays to put up buildings and then goes belly up, the law allows for you, the county taxpayer, to be on the hook to pay for their mismanagement.