Relates to compensation of certain state officers and employees excluded from collective bargaining units; repealer

Sections 3 and 4 of the bill would amend part H of Chapter 55 of the Laws of 2015 and accelerate the restoration of pay raises withheld in 2009 and 2010 by the Executive for certain State officers and employees excluded from collective bargaining units.

Section 5 of the bill would provide that the increases in cost are to be absorbed within agencies' existing budgets so as not to represent a new cost to taxpayers.

Section 6 of the bill would provide for an immediate effective date and shall be deemed to have been in full force and effect on and after April 1, 2015.

Justification

Salary increases, pursuant to Chapter 10 of the Laws of 2008, for managerial or confidential employees of the State were administratively withheld in 2009 and 2010 by the Executive. The recent enactment of the Fiscal Year 2015-16 Budget (Chapter 55 of the Laws of 2015) provided for a pay increase for managerial or confidential employees and set forth a schedule to restore the previously withheld seven (7) percent salary increase from 2009 and 2010. Specifically, Chapter 55 of the Laws of 2015 provided for the restoration of the previously withheld seven (7) percent salary increase, beginning with a two (2) percent increase effective April 1, 2015 and then two (2) percent increases in 2016 and 2017 with a final one (1) percent increase in 2018. However, Chapter 55 of the Laws of 2015, as enacted, will require managerial or confidential employees to wait another three (3) years before being made whole.

Managerial or confidential employees' salaries have been a significant subject of controversy in recent years. The failure to keep managerial and confidential employees in wage parity with their union-represented counterparts has produced legal challenges and threatens the entire pay structure established in Article 8 of the Civil Service Law. In fact, many managerial or confidential employees still make less than those they supervise, while others make less than their union-represented counterparts at the same grade level. Unlike the State's unionized workforce, managerial or confidential employees are prohibited from collective bargaining increases in compensation and are not contractually protected. As a result, there are an increasing number of State employees are turning down promotions or seeking demotions to avoid a pay cut due to the markedly lower pay received by managerial or confident employees.

Indeed, both the Legislature and the Governor recognized, by the recent passage of the 2015-16 Fiscal Year Budget, that managerial or confidential employees are in need of salary increases and the restoration of the 2009 and 2010 withheld salary increases. However, the current salary increase and scheduled repayments are only a start to remedying the state of affairs for managerial and confidential employees. They fail to take into account the fact that managerial and confidential employees were required to forego earned salary increases for the last five (5) years to allow the State to financially recover and will have to wait another three (3) years until their salaries are restored.

This bill would correct this ubiquitous inequity for managerial or confidential employees by accelerating the restoration of the withheld salary with a five (5) percent increase effective April 1, 2016. More importantly, these proper salary levels will ensure the State's ability to continue to promote, recruit, and hire qualified managers, which will lead to further efficiencies and ultimately cost savings for the State.

Legislative history

New legislation.

Fiscal implications

As the Governor reported in his memorandum for the proposed executive budget, the costs to restore these withheld benefits are to be absorbed within agencies' existing budgets so as not to represent a new cost to taxpayers.

Further, the 2009 and 2010 withholdings were done because of large State deficits even though other State employees were paid these increases in 2009 and 2010. It is estimated that the State has saved in excess of $500 million since April 2009 due to this withholding and delay of managerial or confidential salary increases and performance advances (steps).

Effective date

This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2016.