Todd Sutton attended the House Republican Caucus on behalf of UPEA. The caucus discussed the following items:
- All state employees (including higher education) will have annual work hours reduced from 2,088 hours to 2,000 hours for FY2009-2010. Latitude will be given to agencies and managers as to when individual furloughs will occur. The reduction in hours will save the state approximately $51.7 million.
- Public education will receive a reduction of five teacher preparation days for FY2009-2010. There will be no reduction in the number of days students attend school. This will save the state approximately $60 million.
- PEHP has an increase of $17.3 million for FY2000-2010. The legislature has told PEHP to present options so no cost increase will occur for employees.
- The 1.5% 401(k) contribution for FY2009-2010 for all state employees, including public education, will be suspended for one year. This will save the state $21 million.
There was also discussion, but no action, about state revenue enhancements including:
- Repeal the state sales tax cut on food. This would increase state revenue by $150-180 million.
- Increase vehicle registration fees by $20 per vehicle. This would increase state revenue by $50 million.
- Increase the tobacco tax. This would increase state revenue by $45 million.
- Bond for capital projects (buildings). It was indicated there was leadership support in both the House and the Senate to bond for no more than $115 million.
- Use some of the $420 million in Rainy Day Funds.
- Use the federal stimulus money. The state will receive more than $1.7 billion from the American Recovery and Reinvestment Act. There was discussion and questions about when the state would receive this money.
