April 9, 2010

 

The Honorable David A. Paterson

Governor, State of New York

Executive Chamber

State Capitol

Albany, NY  12224

 

Dear Governor Paterson:

 

We have taken note of your action stopping the processing of the 4% general salary increase that PEF, CSEA and certain other represented employees were scheduled to receive, pending the outcome of negotiations between the Executive and the Legislature on the Fiscal Year 2010-2011 budget.  We urge you not to conclude negotiations on the budget without making provision to pay the 4% general salary increase to Management/Confidential (M/C) employees who, in addition to being denied the 3% general salary increase PEF, CSEA and other represented employees received in 2009-2010, were singled out in your 2010-2011 Executive Budget recommendations for loss, as well, of this year’s 4% salary increase.

 

In our discussions in recent months with Executive Chamber and Division of the Budget staff and with legislators and their staffs, we presented our OMCE M/C Pay Restoration Proposal, a detailed and specific plan that (1) will generate the M/C workforce savings you are looking for in Fiscal Year 2010-2011 and (2) can be accomplished through the delay of general salary increases and the use of a deferred pay (lag) initiative.  With our proposal, we estimate a savings of $35 to $40 million in Fiscal Year 2010-2011 to fund M/C salary increases for the Executive Branch and SUNY that would cost $28 million.

 

We urge you to consider adopting our M/C Pay Restoration Proposal.  We have enclosed a copy of the proposal and we are available for further discussion of it with your staff, at their earliest convenience.  We can be reached at 456-5241.

 

New York State’s residents need a government that is managed effectively and provides them with necessary services.  This need cannot be met without M/C employees.  M/C employees deserve nothing less than pay equity.  We urge you to do the right thing and stand with them as you work toward enacting a budget for Fiscal Year 2010-2011.  

 

Sincerely,

 

 

Barbara Zaron                                                                          Joseph B. Sano

President                                                                                  Executive Director

 

Enclosure

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April 9, 2010

 

The Honorable Sheldon Silver

Speaker, New York State Assembly

932 Legislative Office Building

Albany, NY  12248

 

Dear Speaker Silver:

 

We are writing to urge you to include funding for Management/Confidential (M/C) salary increases along with any restoration of funds in the Fiscal Year 2010-2011 budget for salary increases for PEF and CSEA represented employees.

 

Although M/C employees do not have a contract, nevertheless salary increases are provided for them by statute, just as the salary increases for PEF and CSEA represented employees are.  We are aware that the M/C pay bill includes language allowing for the withholding of salaries, but so do the pay bills for PEF and CSEA represented employees.

 

OMCE, on behalf of M/C employees – the majority of them competitive class employees – has submitted to the Administration and to the Legislature many cost-savings proposals.  We have also repeatedly proposed funding mechanisms that would produce cash savings and, at the same time, ensure payment of salary increases.  Our most recent, the OMCE M/C Pay Restoration Proposal (attached), which combines deferring payment and implementing a lag payroll, would produce approximately $35 to $40 million to fund M/C salary increases for the Executive Branch and SUNY that would cost $28 million.

 

You must ensure that salary increases for M/C employees are treated at least the same as salary increases for PEF and CSEA represented employees and that they are restored in the budget that is enacted for Fiscal Year 2010-2011.  Just to remind you, last year, the 2009-2010 M/C general salary increase (3%) and M/C performance advances (steps), merit and longevity payments were all withheld, and none of them has yet been restored!

 

New York State’s residents need a government that is managed effectively and provides them with necessary services.  This need cannot be met without M/C employees.  M/C employees deserve nothing less than pay equity.  We urge you to do the right thing and stand with them as you work toward enacting a budget for Fiscal Year 2010-2011.  

 

                                                                        Sincerely,

 

 

            Barbara Zaron                                                                          Joseph B. Sano

            President                                                                                  Executive Director

 

Attachment

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April 9, 2010

 

The Honorable John Sampson

Democratic Conference Leader, New York State Senate

409 Legislative Office Building

Albany, NY  12247

 

Dear Senator Sampson:

 

We are writing to urge you to include funding for Management/Confidential (M/C) salary increases along with any restoration of funds in the Fiscal Year 2010-2011 budget for salary increases for PEF and CSEA represented employees.

 

Although M/C employees do not have a contract, nevertheless salary increases are provided for them by statute, just as the salary increases for PEF and CSEA represented employees are.  We are aware that the M/C pay bill includes language allowing for the withholding of salaries, but so do the pay bills for PEF and CSEA represented employees.

 

OMCE, on behalf of M/C employees – the majority of them competitive class employees – has submitted to the Administration and to the Legislature many cost-savings proposals.  We have also repeatedly proposed funding mechanisms that would produce cash savings and, at the same time, ensure payment of salary increases.  Our most recent, the OMCE M/C Pay Restoration Proposal (attached), which combines deferring payment and implementing a lag payroll, would produce approximately $35 to $40 million to fund M/C salary increases for the Executive Branch and SUNY that would cost $28 million.

 

You must ensure that salary increases for M/C employees are treated at least the same as salary increases for PEF and CSEA represented employees and that they are restored in the budget that is enacted for Fiscal Year 2010-2011.  Just to remind you, last year, the 2009-2010 M/C general salary increase (3%) and M/C performance advances (steps), merit and longevity payments were all withheld, and none of them has yet been restored!

 

New York State’s residents need a government that is managed effectively and provides them with necessary services.  This need cannot be met without M/C employees.  M/C employees deserve nothing less than pay equity.  We urge you to do the right thing and stand with them as you work toward enacting a budget for Fiscal Year 2010-2011.  

 

                                                                        Sincerely,

 

 

            Barbara Zaron                                                                          Joseph B. Sano

            President                                                                                  Executive Director

 

Attachment

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

 

ProposalMake 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:

 

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)

            (5000 employees x $1500 est. avg advance/J.R  avg $75000)

                                  (Cost Estimate     $7.5 Million)

                        (Cost Estimate=25% of $28 M/1 Qtr.= $7 Million)

(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.