Summer 2022 • Volume 40, Issue 4
State Employees Association of North Carolina
REPORTER
THE
TH
Legislature chooses to HOARD MONEY rather than tackle the state's severe recruitment and retention problems SEANC was the most prominent voice actively and loudly speaking out against a state budget proposal from the legislature that fell short of recognizing state employees and retirees with significant and necessary pay increases. Legislators passed their budget and adjourned the short session on July 1. SEANC Executive Director Ardis Watkins released a statement shortly after the budget announcement. She also appeared on numerous television shows and in articles to plead our case that legislators should go back to the drawing board and come up with a real plan to tackle recruitment and retention problems. “The State of North Carolina has record staff vacancy rates, but the
legislature is choosing to hoard money rather than give state employees reason to stay,” Watkins said in a statement. “Budgets are always about priorities. This budget shows state employees and retirees that they are not a priority.” SEANC members sent more than 3,800 emails to legislators explaining the challenges of working for the state and the need for more investment in the state’s workforce. In the end, neither Republicans nor Democrats showed an appetite for a fight. All Republicans and many Democrats voted “yes” on the budget. It passed both the House and Senate with veto-proof majorities. The General Assembly adjourned the short session after the budget vote. In short sessions, there is usually little interest in taking on contentious issues, and this year was no different. Our lobbyists
have received assurances from legislative leadership that state employee and retiree raises will be significant in next year’s session, and we will hold them to that promise. 2022 BUDGET • 3.5% pay increase for most state employees — a 1% increase from the 2.5% raise already budgeted. • DPS employees who are currently on step-pay plans receive an additional 2% for a 4.5% total raise. • 4% one-time supplement for retirees. • Minimum wage increase for non-certified school employees to $15 per hour. • Longevity pay maintained for active state employees. • Protection of employees' personnel records. • State Health Plan fully funded. No premium increase for the fifth consecutive year. • Teachers and State Employees Retirement System fully funded. Employer contribution is now 17.38%. • Opportunity for employees to use or cash in special bonus leave benefits that accrued.
Big Hospitals reap massive growth in profits, cash and investments using taxpayer-funded COVID relief money State Treasurer Dale Folwell held a press conference on June 22 to release the findings of a peer-reviewed report that shows that the state’s big hospitals compiled record surpluses thanks to COVID relief funds. Even as they complained of financial losses, wealthy hospital systems enjoyed record profits and a massive $7.1 billion growth in cash and investments during the pandemic. These hospital systems recorded those profits after taking $1.5 billion in taxpayer-funded COVID relief, as well as another $1.6 billion in Medicare Accelerated and Advance Payments. It is unclear why the large systems needed
the relief. Atrium Health alone was sitting on $7 billion in cash and investments. Most systems had enough cash on hand to operate for more than half a year without any incoming revenue — or even 10 times as long as many rural hospitals. Treasurer Folwell said the research results were unsettling. He called on these hospital systems to use their massive profits to lower costs for patients and to increase charity care to a level equal to or above their lucrative tax breaks — or to return the unnecessary, taxpayer-funded relief. “Some things are worth getting mad
about. The hospital cartel is using taxpayer dollars to help crush the middle class and rob lower-income families of upward mobility," Treasurer Folwell said. “Wealthy hospitals took billions of taxpayer dollars meant to protect struggling hospitals — and then some billed poor families or even sued patients.” SEANC stands with Folwell on these issues to ensure the long-term health and affordability of the State Health Plan. Without transparency, health care costs for members will continue to rise, and the hospitals will continue to get richer and richer at our expense.