Announced “Potential Government Shut Down”

 Memo

 

TO:               Executive Board Members and Council Leaders

FROM:          Bob Carrothers
                       Director of Labor Relations

DATE:           June 11, 2010

RE:               Announced “Potential Government Shut Down”

The Governor’s Office of Employees Relations notified us today that if an emergency appropriation bill is not passed on Monday, June 14, 2010, non-essential State employees will be directed to remain at home on Tuesday, June 15. Conversely, employees identified as essential will still be required to report to work. Many of you have by now certainly seen information issued by your agency management to this effect.

We are receiving numerous questions regarding what our bargaining unit members should do on Tuesday. Employees should follow the directions they receive from their management regarding whether they are deemed essential or not and whether they are directed to report to work or remain home on Tuesday.

We obviously dispute the Governor’s authority to direct State employees to remain at home in these circumstances and will take all appropriate action to protect our member’s contractual rights. However, the principle of “work now, grieve later” applies here, follow your management’s direction on Tuesday.

Please continue to check the PEF website for updates as this situation develops.

Governor’s Actions Regarding Negotiated Pay Raises

 Memo

 

TO:               Executive Board Members and Council Leaders

DATE:           April 14, 2010

RE:                Governor’s Actions Regarding Negotiated Pay Raises

The governor’s recent actions regarding withholding of pay raises have generated many questions from our members concerning the status of our negotiated pay increases and bonuses, how the state budget process impacts the governor’s actions, and what potential actions are available to PEF to ensure that the state meets the obligations of our contract.

We believe unilateral actions by the governor to suspend any provision in our contract to be a contract violation and an illegal act.

As you may be aware, the governor submitted a supplemental budget appropriation that did not include funding for negotiated raises for the institutional payroll due April 22nd. Unfortunately, due to the fact that the budget bill was a supplemental appropriation the legislature has no ability to amend or modify the bill, only to approve or defeat it. PEF and CSEA chose not to ask the legislature to hold up or defeat the supplemental appropriations bill, because without the bill there would be no authority to issue any pay checks for the state workforce. If no state budget is adopted and additional supplemental budget appropriations are needed the governor has warned that the supplemental appropriations bills will not include funding for negotiated pay raises.

As of now, the governor has indicated in press accounts that once a final budget is in place that the pay raises. negotiated in the contract will be paid. Additionally, at this point in time it is our understanding that both step increases and longevity bonuses will be paid, although the step increases will be based on the 2009 salary schedule, this will also be readjusted once a final state budget is adopted.

PEF’s position regarding the state’s contract obligations remains unchanged — We will do whatever is necessary to ensure the state meets its obligations and we are opposed to reopening our contract.

Yesterday, CSEA issued a press release indicating that they are filing a contract grievance. This option is also available to PEF. PEF will take whatever actions are necessary to ensure that the state lives up to its obligations under the contract, including, filing contract grievances or a lawsuit; if needed, we may call on our members to take action as well. However, the action and timing PEF takes against the state will be determined by what is necessary and what provides the greatest opportunity for success.

Up-to-date information regarding the status of pay raises and actions taken by PEF can be found on the PEF website. I also encourage members to take action and contact their legislators through the PEF Action Center on the PEF homepage and urge them to act as swiftly as possible to address the budget issues affecting the state workforce.

Kenneth Brynien

cc:       Statewide Labor-Management Chairs
            PEF Staff

A New Senate Majority Website Wants Input on How to Reduce the State’s Budget Deficit

 Memo

 

TO:               Executive Board Members and Council Leaders

DATE:           February 13, 2009

RE:               A New Senate Majority Website Wants Input on How to Reduce the State’s Budget Deficit

The New York State Senate Majority has launched a website that is asking for feedback from state residents on how to close the state’s budget gap. As you know PEF has advanced many options to the budget cuts the Governor has proposed and they are posted on the PEF website (The answers to the State Budget Deficit). In addition numerous members have forwarded to us examples of state agency waste and the hiring unnecessary new state agency managers that continue during these tough fiscal times.

We want to make sure that the Senate Majority (Democrats) hear from our members about our budget savings ideas and examples of waste in state government and that their website doe not just receive input from conservative, anti-union and pro-business groups. Please visit http://www.nybudgetideas.org/ and let them know how you would balance the state budget. Let them know how would you increase revenues (e.g. raise the income tax on the wealthy, reducing the contracting out of state services to private consultants, bottle bill expansion, bulk purchase of prescription drugs, using rainy day funds, federal stimulus money, reforming Empire Zones, and closing corporate tax loopholes) and any waste you see in state agencies including unnecessary hiring of new managers.

Kenneth Brynien

cc:        Statewide Labor-Management Chairs

Budget Discussions with the Governor

 Memo

 

TO: Regional Coordinators, Executive Board Members and Council Leaders

DATE: October 21, 2008

RE: Budget Discussions with the Governor

Earlier today I met with the governor along with leaders from CSEA and OMCE regarding the state’s fiscal crisis.

The governor pointed out there are no sacred cows in the budget and that all options are on the table. However, although there are many rumors regarding actions to address the budget deficit, he repeatedly stated state employees have already taken the brunt of the cuts and he did not want to take more from the state workforce.

The governor called the meeting to hear directly from union leaders, our thoughts on ways to address the deficits.

Prior to the meeting I provided his office with detailed proposals to close the budget gap (see attached).

I took the opportunity at this meeting to reiterate these proposals. I emphasized the need to reduce the number of contractors and consultants and I also took the opportunity to point out areas of additional savings already available in our contract, including telecommuting, flexible scheduling and compressed work weeks. The governor agreed that contracting out has to stop and will stop and also agreed that agencies need to be more receptive to options available in our current contract.

The governor also asked for our support in convincing congress of the need for federal assistance in this crisis.

The governor has pledged that there will be follow up meetings with the unions as well as other stakeholders. I will continue to update you as information becomes available.

Budget Cut Alternatives to Layoffs for October 21, 2008 Meeting

 Memo

 

TO: Ken Brynien

FROM: Thomas Cetrino and Brian Curran

DATE: October 14, 2008

RE: Budget Cut Alternatives to Layoffs for October 21, 2008 Meeting

We believe the State must make every effort to avoid layoffs as layoffs and other serious cuts in State services are counterproductive in a recession and according to Joseph Stiglitz are more harmful to the State economy than a temporary income tax increase on wealthier New Yorkers. A the very least the State must close its up to $8 billion budget gap with an equal share of revenue raisers and budget cuts. The following options should help the State achieve that goal.

1. Increase the income tax on wealthier New Yorkers; ranging from the millionaire tax approved by the Assembly to the temporary surcharge that we enacted in 2001. This option will generate between $2 billion and $7 billion in revenue depending on the income levels and rates.

2. Reduce consultant costs by instituting a freeze on all new consultant contracts, requiring a budget waiver to enter into those contracts, and by examining all current consultant contracts as to which can be terminated and which can be done by State employees at a lower cost. Savings: up to $750 million a year.

Discussion

State expenditures for consultant contracts have increased from $2.26 billion in SFY 2003-04 to $2.78 billion in SFY 2007-08 (see Attachment 1). The largest increases have been in Information Technology (IT) Design and Development, IT Software Maintenance, IT Hardware Maintenance, and Engineering Supervision. Consultant contract expenditures for the first five months of SFY 2008-09 show little if any reduction form SFY 2007-08 (see Attachment 1). The Comptroller, KPMG, and PEF have done studies that show that consultants cost between 50% and 75% more than State employees who could do most of their work. During the last hiring freeze State agencies found it easier to hire consultants to get work done that had to be completed than to hire State employees even if it was less expensive to hire State employees. We have anecdotal evidence from our members that this is once again occurring. The Division of Budget needs to institute new restrictions on new consultant contracts and more aggressively review currant consultant contracts for potential savings.

3. Enact the bigger better bottle bill which will generate $200 million in additional revenue in a full fiscal year.

4. Collect taxes that are due – especially cigarette taxes on reservation purchases by non-Indians

– yield estimates range from $400 million to $1.6 billion a year.

5. Reform economic development programs to level the playing field among businesses in NYS:

 improve the effectiveness and accountability of Industrial Development Agencies,

 apply Brownfield Clean Up Program reforms to “grandfathered” projects, and

 phase out the Empire Zones program (Savings begin at $50 million/yr, rising to $500 million after 10 years )

6. Improve the way Limited Liability Company’s annual fees are calculated (DOB calculated $75 million/year in savings in 2007) and close other corporate tax loopholes.

7. Use the State’s tremendous purchasing power to see reduced prices from drug manufacturers for prescription drugs for Medicaid, State employees, and other State programs. This would generate approximately $100 million a year.

8. Use the Tax Stabilization Reserve Fund and the Rainy Day Reserve Fund which together have $1 billion and are intended to be used in fiscal emergencies.

9. Eliminate all “occasional” employees who are retired but have returned to work for the State on a part-time basis. Freeze all new appointments that require 211 waivers. Estimated savings up to $150 million

Discussion

The State spent over $411.2 million in SFY 2007-08 on temporary employees and has spent $200.4 million on these employees during the first five months of SFY 2008-09 (see Attachment 2). This appears to be the same rate of spending on these employees as last year. Included in these costs are the salaries of State employees who retire and come back to work for the State at a salary below $30,000 (if they are paid more they must get a 211 waiver to work for the State and collect their retirement). These employees may be able to escape a layoff using normal layoff procedures by an agency just not targeting the title they work in. We believe such employees should be the first to leave the State payroll prior to implementing any layoffs. This is consistent with the law that requires provisional and temporary employees in a title that is targeted for layoff to be the first to lose their jobs. In addition the State should freeze all 211 waivers during the current fiscal crises. Employees who are supplementing their retirement salaries should not be working over employees who depend on their salaries for their daily existence.

10. Eliminate or severely restrict overtime by hiring full-time employees to handle the overtime hours. In SFY 2007-08 the State spent $485.7 million on overtime costs that are not contractually obligated and has spent $196.1 million on such costs in the first five months of SFY 2008-09 (see Attachment 2). This appears to be about the same rate of spending on overtime as the last fiscal year. If employees are hired to work this overtime the State would save up to $160 million a year.

Attachment 1

Attachment 2