Update - April 13, 2010

The first Special Session of the 2010 legislature adjourned Sine Die at 1:10 a.m., Tuesday morning, April 13, 2010 after passing the 2010 Supplemental Operating Budget and the new revenue package to help implement it.  Legislators used a combination of program cuts, fund balance transfers, furlough savings and one time federal funds to close the $2.8 billion budget gap. The budget relies on nearly $800 million in new revenue to balance the $2.8 billion deficit resulting in a $30.6 billion 2009-11 biennial operating budget.  The budget leaves $500 million in reserves and uses $500 million in federal Medicaid funds.

The cuts in state programs including K-12 and higher education could result in the loss of 10,000 public sector jobs over the biennium.

The new revenue package is expected to raise $800 million. It includes:

1. A $1 per pack increase on cigarettes
2. A temporary sales tax on bottle water, candy, gum and beer.
3. A temporary tax on soda pop amounting to 2 cents per can.
4. Adds an additional three-year surcharge of 0.3 percent to taxes on service businesses

The budget passed will affect state employees as follows:

1. Cost of living adjustments (COLA’S) are frozen for 2011. The freeze will not affect employees eligible for step increases.
2. For fiscal year 2011 the monthly employer contribution rate for funding state employee health premiums was increased from $768 to $850. The increased appropriation should be sufficient to maintain employee health benefits at the current level for most plans. The employee portion of their monthly premiums remains at 12 percent.
3. Finally, the furlough bill SB6503, requires state departments and agencies to reduce payroll related general fund expenses by their proportionate share of $45 million for the balance of the biennium ending June 30, 2011. Departments and Agencies who fail to submit plans for their allocated reductions will be subjected to the mandatory closure schedule of one day per moth ending June 30, 2011. Furloughs will not affect an employee’s service credit; leave accruals, personal day, and/or retirement benefits.

“Thanks to all Local 17 members who contacted their legislators and/or contributed in any way to the Local 17 2010 legislative effort. Your activism makes a difference.”

- Don Briscoe, Legislative Director

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Update - April 2, 2010

Before adjourning for the Easter holiday, the House, by a vote of 50 "yes" and 38 "no" and 10 "excused" passed Engrossed Substitute Senate Bill 6503 (the Furlough Bill). The bill will be returned to the Senate for concurrence in the House amendment before going to the Governor for signing.

The House and Senate have not reached agreement on a new revenue package. The parties will continue their conference meetings following the Easter break. Until agreement is reached, we will not have the final 2010 Supplemental Operating Budget. The revenue allocated to
state Employees health care premiums will be contained within the budget.

Local 17 members should continue to contact your legislators and request that that support an appropriation within the budget sufficient to maintain current level of health benefits for state employees.