State Budget moves from Appropriations to Full Legislature

Appropriations Committee Replaces Across-the-Board 5 Percent Pay Cut with 20 Shutdown Days for Executive and Legislative Branch Workers, Freezes Merit Increases and Longevity Increases for Workers in All Three Branches of State Government, and Cuts Individual Health Insurance Benefits In one of its final votes on the proposed two-year state budget, the Appropriations Committee at 10:20 PM Monday, May 18, eliminated the across-the-board 5 percent pay cut on all state workers. In its place, the Committee imposed 20 shutdown days (10 per fiscal year) on Executive Branch and Legislative Branch workers, exempting so-called "Tier 1" workers such as those in institutions, law enforcement and public safety. For workers in all three branches of state government, the Committee voted to freeze merit increases and longevity increases for two years. The Committee allowed for comparable savings to be identified through contract negotiations. On health insurance, the Committee imposed tiered individual premiums as follows: Beginning October 1, 2009, those earning $30,000 or less will pay no premium, those earning $30,001 to $79,999 will pay 5 percent premiums; and those earning $80,000 and up will pay 10 percent premiums. Beginning July 1, 2010, those earning $30,000 or less will pay 5 percent premiums, those earning $30,001 to $79,999 will pay 10 percent premiums; and those earning $80,000 and up will pay 15 percent premiums. The Committee voted to establish a health credit premium program for implementation on July 1, 2010, where workers could earn back some or all of their individual premiums through healthy behavior. Under this program, to be developed by the State Employee Health Commission, workers earning $30,000 or less could earn their way back to fully paid premiums, those earning $30,001 to $79,999 could earn their way back to up to 95 percent paid premiums, and those earning $80,000 and up could earn their way back to up to 92.5 percent paid premiums. These cuts affecting state workers are now part of the overall two-year state budget that will go to the House and Senate for voting. We'll post more detailed information on Tuesday, May 19. from MSEA-SEIU's website At this point, I do not know what programs have been cut, nor how or if elders and disabled have been affected.