Senate Bill 195, sponsored by Senator Daniel Liljenquist, R-Davis, was heard on Friday, Feb. 27th. The bill seeks to suspend the 1.5% 401(k) contribution for one year beginning July 1st, 2009 and ending June 30th, 2010. In the interest of saving jobs, UPEA did not publicly oppose the bill on Friday; however, we are concerned about the legislature balancing the state budget using public employee benefits. Friday’s committee meeting concluded without a vote on the bill.
On Monday, UPEA found the bill was due in committee once again. At this point, UPEA was prepared to oppose the bill because the broad change in benefits only saved the state $13.2 million while leaving employee benefits open to further cuts down the line. Yesterday, the committee reviewed Senate Bill 195, but this time, the fiscal note showed the 401(k) suspension would save $32 million. We do not know why there was a $19 million discrepancy.
In light of the newly-discovered savings, Senator Gene Davis, D-Murray, proposed an amendment that suspended only half of the 401(k) contribution for one year. UPEA spoke favorably of the compromise but maintains its overall opposition.
