David A. Paterson                 Dennis P. Whalen

                      Governor                     Director of State Operations 
 
 
 

MEMORANDUM 
 
 

TO:    Heads of State Agencies and Public Authorities

FROM: Dennis P. Whalen    
 

SUBJECT: 2009-10 Salary Increase, Performance Advances, Merit Awards, and Longevity Payments for M/C Employees  
 

DATE:  April 2, 2009 
 
 

New York State is facing an unprecedented fiscal emergency, resulting in record budget deficits.  We have asked you to administratively implement spending reduction actions, and we appreciate your continuing efforts to do so.  We have continued to review our other available administrative options, including the salary increases and other payment actions for Managerial and Confidential (M/C) employees. 
 

As a result of our review, we will be withholding from M/C and other unrepresented employees the April 1, 2009 three percent general salary increases and the 2009-10 performance advances, merit awards, and longevity payments. In the context of taking this action, M/C and other unrepresented employees will be exempt from the layoff actions that were announced on March 24, 2009 whenever legally permissible in light of layoffs of unionized employees. 
 

Our ability to withhold the salary increase and the other payments is pursuant to a provision of Chapter 10 of the Laws of 2008 that allows these forms of pay increases to be withheld when the Budget Director determines it is necessary “to reduce state expenditures to acceptable levels or when, in the opinion of the Director of the Budget, such increase is not warranted or is not appropriate.” 
 

This determination, like others announced recently regarding the State workforce, was not made lightly.  We recognize the vital roles filled by our M/C staff and the hard work they provide to serve all our residents.  However, these actions are necessary to reduce the State’s financial obligations in the face of a severe fiscal situation. 
 

Thank you for your attention to this matter.