On Tuesday, the House Democratic Caucus was presented with a list of potential spending offset options regarding state employees to help them with the FY10 budget. These options included the following:
Personnel
-Agency Optional- An agency may reduce budget and have discretion to choose options (i.e. RIF, furlough, pay cuts, etc…).
-Reduction in force (RIF)- Lay off selected employees based on less essential programs/services, and job performance.
-State Agency and Higher Education Staff Furlough- Provide leave without pay for X number of days for state agencies and higher education institutions.
-Higher Education Faculty Furlough- Provide leave without pay for faculty members for X number of days for higher education institutions.
-Public Education Furlough- Amend annual contract days/instructional hours. Provide leave without pay for employees for X number of days for all staff.
Health Benefits
-Increase employee premium share – change current employer/employee funding ratio of health benefits. Employee premium share would increase.
-Enhanced High Deductible Health Plan- Add health savings account component to existing health programs.
-PEHP Reserve/Benefit Changes- Use a portion of the current PEHP funding reserve to fund some of the health care increase for FY2009-2010 one-time cost savings measure. Employee premium share would increase.
Retirement Defined Contribution
-Repeal Re-employment 401 (k)- This is also known as “double dipping”. Repeal the requirement that a re-employed retiree gets a full retirement contribution at the same time they are collecting a retirement allowance from URS.
-401(k) Contribution Freeze- Suspend for the next fiscal year the employer contribution into the employees 401(k) of members of the Noncontributory Retirement System. 1.5% of a member’s salary.
-Higher Education 401 (k) Freeze- Reduce the state’s 401(k) contribution to Higher Education (TIAA/CREF). Currently each employee receives 14.2% of their gross salary.
UPEA spoke to each of these issues and raised concerns regarding taking benefits away. This is a concern, because once a benefit is taken away it is historically not given back. It was also mentioned, if given the choice between RIF’s and furloughs, UPEA would be in support of furloughs because jobs would be saved.
