6503-S.E AMH ARMS PRIN 277

ESSB 6503 - H AMD 1702

By Representative Armstrong

OUT OF ORDER 4/02/2010

    Beginning on page 1, line 7, strike sections 1 through 5 and insert the following:

    "NEW SECTION. Sec. 1.   A new section is added to chapter 41.04 RCW to read as follows:

    (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 their 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 2 through 5 of this act."

    Renumber the remaining sections consecutively, correct any references accordingly, and correct the title.

    Beginning on page 34, line 16, strike section 10

    Renumber the remaining sections consecutively, correct any references accordingly, and correct the title.

EFFECT:   Deletes the sections implementing 10 days of agency closures or alternate agency reduction plans, including a section reducing General-Fund State compensation expenditures for Washington Management Services and Exempt management employees by $10 million, and adds a section that 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.

           Consistent with the remaining sections 2 through 5 of the bill, final salary calculations for employee pensions are not reduced by the 1.75 percent salary reduction.

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