6444-S.E AMH ARMS PRIN 260

ESSB 6444 - H AMD TO H AMD (H-5483.2/10) 1320

By Representative Armstrong

NOT ADOPTED 3/05/2010

    On page 239, beginning on line 22, strike all of section 707 and insert the following:

    "NEW SECTION. Sec. 707.   A new section is added to 2009 c 564 (uncodified) to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT--ONE AND THREE QUARTERS PERCENT ACROSS THE BOARD SALARY REDUCTION.

General Fund‑-State Appropriation (FY 2010).......... ($3,742,000)

General Fund‑-State Appropriation (FY 2011)......... ($44,906,000)

Special Account Salary/Insurance Increase Account--State Revolving Account Appropriation....................................... ($51,975,000)

           TOTAL APPROPRIATION...................... ($100,623,000)

    (1) Beginning June 1, 2010, and until the June 30, 2011, the salaries or wages paid to all employees of all state agencies and institutions of higher education are reduced by one and three quarters percent.  In conjunction with this one and three quarters percent reduction in pay, no state employee shall be required to take mandatory days of leave without pay between June 1, 2010 and June 30, 2011.

    (2) It is the intent of the Legislature that state elected officials whose salaries are set by the salary commission offer a similar reduction to his or her salaries as called for in subsection (1) of this section, and are thereby strongly encouraged to make a similar one and three quarters percent of salary donation to a worthy charitable cause.

    (3) The appropriations for state agencies, including institutions of higher education, are subject to the following conditions and limitations:  Appropriations are adjusted to reflect changes to agency appropriations to reflect savings resulting from reducing salaries and wages, and to facilitate the transfer of moneys from dedicated funds and accounts the state treasurer is directed to transfer sufficient moneys from each dedicated fund or account to the special account retirement contribution increase revolving account in accordance with schedules provided by the office of financial management.

    (4) It is the intent of the legislature that the reduction of employee salaries and wages made pursuant to this section be considered as integral to agency spending reduction efforts.  Consistent with chapter 430, laws of 2009 (Senate Bill 6157 - calculating compensation for pension purposes), and sections 5 through 8 of Substitute Senate Bill 6503, as amended by the house committee on ways and means, the calculation of final salaries for employee pensions shall not be adversely affected by the across-the-board salary reduction required by this section."

EFFECT:   Deletes the section reducing appropriations related to SSB 6503 (temporary layoffs), and reduces the salaries of all state agency and higher education employees by 1.75 percent beginning June 1, 2010 and ending June 30, 2011.  No state employees taking a salary reduction under the section shall take mandatory leave without pay during the salary reduction period.  State elected officials whose salaries are set by the salary commission are encouraged to donate a similar 1.75 percent of pay to a worthy charitable cause.  Directs the Office of Financial Management (OFM) and the State Treasurer to manage the transfer of dedicated funds and accounts to affect the reduced appropriations from individual agency budgets according to schedules developed by OFM.

           Consistent with chapter 430, laws of 2009 (Senate Bill 6157 - calculating compensation for pension purposes), and sections 5 through 8 of Substitute Senate Bill 6503, final salary calculations for employee pensions are not reduced by the 1.75 percent salary reduction.

FISCAL IMPACT:

           Reduces General Fund-State by $434,000.

           Increases Other Funds by $40,066,000.

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