THE
State Employees Association of North Carolina, SEIU Local 2008 1621 Midtown Place, Raleigh, NC 27609 • www.seanc.org 800-222-2758 • 919-833-6436 • Circulation 55,000
September 2015
• Vol. 33, Issue 9
Pay raises, COLAs are sticking points in negotiations By Jonathan Owens SEANC Director of Communications
As state budget debate entered its final stages in late August, pay raises for state employees and cost-of-living adjustments for retirees were a couple of the last points of contention. House and Senate leaders decided on a bottom-line spending amount for the budget — $21.735 billion — during a breakfast meeting with Gov. Pat McCrory at his mansion on Aug. 18. The amount represents a 3.1-percent increase in spending and is $265 million more than the Senate’s sparse proposal, but still roughly $420 million less than the House’s plan. If you will recall, the Senate budget gave no pay increases to state employees and retirees, while the House gave 2 percent increases to actives and retirees and 40 hours of bankable leave to active employees. The Senate seemed adamant it would hold the line on increases, but employees and retirees had strong advocates in the House, including chief negotiator Rep. Nelson Dollar and House Speaker Tim Moore. With a surplus of over $400 million in revenue this year, it’s hard to imagine that legislators would consider not giving raises and COLAs. The way it works at the legislature is the squeakiest wheel at the end of session gets the grease. For SEANC, that means no pay raise and no retiree COLA if the House and Senate don’t hear from members. Members stepped up to the plate and flooded legislators’ phone lines and email inboxes on Aug. 18 reminding them of the hard work state employees put in each day. “It’s time SEANC gets back to the basics on some things and that starts with members lobbying for their pay, health care and retirement,” SEANC Executive Director Mitch Leonard said in a statement asking members to contact their lawmakers. “This is an organization of members led by active members like you looking out for your fellow state employees.”
As of press time, legislators had not yet agreed on a state budget compromise. Please go to seanc.org/legislativeupdate to read the latest news from SEANC’s Government Relations Department on the budget negotiations.
This year’s debate marks the longest in at least 13 years. The legislature’s goal is to have a budget in place by July 1, each year, but lawmakers have had to pass two continuing resolutions to keep government operations going already this year. Moore said he expected a deal to be hashed out completely before the second continuing resolution expires on Aug. 31. The delay has already cost the state at least $1 million in operating costs at the legislature. The delay also costs the state’s schools. The Senate budget slashes thousands of teacher assistant positions over two years and puts that money into hiring more teachers to reduce class size. Without a deal in place, schools started class on Aug. 24 without knowing if funding would be in place for the assistants, who also didn’t know if they’d have a job at all in a month. The fate of administrative jobs in the Department of Transportation is still on the line as well. Please read the SEANC Scoop and Legislative Update each Friday and follow SEANC on social media. When a budget decision has been reached, SEANC will alert members. jowens@seanc.org