OMCE Proposal to Restore Lost M/C Compensation 2009-2011

Proposal:  Make M/C designated employees whole for all compensation lost during the 2009-10 fiscal year and the 2010-11 fiscal year proposed loss.  This will be accomplished through the delay of general salary increases, staggering the payment of performance advances and the use of a deferred pay (lag) initiative.

Assumptions:

• The 2010-11 Executive Budget estimates that $28 Million (all funds)was saved by eliminating the 4% general salary increase for those deemed management/confidential
• The 2010-11 Executive Budget does appropriate funding sufficient to accommodate payment of performance advances (steps), longevity and merit payments at the 2008-09 salary schedule (Sec 130 CSL) rate.
• A one paycheck  “rolling” pay date deferred (lag ) payroll would generate approximately $33 -35 Million in savings. (pay date advances one day for ten consecutive pay periods)

Actions:

·        Effective April 1, 2010 performance advance (steps), longevity and merit pay will be paid utilizing the 2008-09 salary (CSL section 130/Chapter 10 Laws of 2008) schedule for management confidential employees. Thos eligible for such performance advances (steps) shall move one step towards the job rate on that schedule.                                                    (Funding provided)

·        Effective July 1, 2010 a 2% general salary increase shall be applied to the 2008-09 M/C salary schedule referenced above.                      (Cost= 9 months of $14M =   $10.5 Million)

·        Those now eligible for a performance advance that did not qualify in April for one shall be granted that performance advance.  Those receiving a performance advance in April shall not receive an additional advance in July, 2010                                    (Cost Estimate       $.25 Million)

• All M/Cs at the job rate effective July 1, 2010 shall receive a “Job Rate Advance’  equal to 2% of the job rate for their position using the salary schedule effective  July 1, 2010.

            (5000 employees x $1500 est. avg advance/J.R  avg $75000)         (Cost Estimate     $7.5 Million)

• In January 1, 2011 a 2% general salary increase shall be applied to the salary schedule effective July 1, 2010.                                      (Cost Estimate=25% of $28 M/1 Qtr.= $7 Million)
• All M/Cs not at the job rate shall receive a performance advance (step) increase.  The receipt of this performance advance shall not allow individuals to exceed the job rate.
• All those now at the job rate and those who were eligible and received a “Job Rate Advance”  effective July 1, 2010 shall now receive an additional “Job Rate Advance”.  This “Job Rate Advance” effective January 1, 2011 will be in addition to the July 2010 schedule “Job Rate Advance” paid to those eligible employees. This “Job Rate Advance” effective January 1, 2011 shall be equal to 1% of the job rate for their position using the salary schedule effective  January 1, 2011 and will become part of the employee’s annual compensation.

(6000 employees x $788 avg advance (Avg J.R. of $78800)         (Cost Estimate=    $4.7 Million)

Funding:

·        The 2010 Executive Budget  allocates funding for anticipated performance advances (steps), longevity and merit payments for M/C employees

·        A one pay period (10 days), rolling pay date-deferred (lag) payroll is proposed for implementation during the last 10 pay periods of the 2010-11 Fiscal Year. Using DOB provided estimates this should yield $33-35 Million in savings

·        The $28 Million in estimated savings from the planned rescission of the M/C 4% general salary increase

·        $61-65 Million available to fund this initiative with an estimated cost of $30 Million

Result:

Taxpayers save  $ 31-35 Million and M/C employees are returned to 95-100% of what Chapter 10 of the Laws of 2008 provides.