posted 5/12/17
Due to the recent free-fall in tax revenue, the current fiscal year has fallen into a deficit of roughly $350 million. In response to the tax shortfall and the inability to achieve a legislative budget, the Governor’s Office has found it necessary to begin the process of layoffs in order to cut expenses. These layoffs are the beginning of the budget mitigation plan and we expect nearly 4,200 layoffs in order to achieve the level of savings required to balance the budget.
The drastic drop in revenue has sharply impacted the State budget proposals for the next 2 years. This will negatively impact contract negotiations, as an arbitrator is guided by seven statutory factors, one of which is the State’s ability to pay. The tax shortfall also impacts ongoing discussions at SEBAC regarding potential modifications to the pension and healthcare agreement.
SEBAC
This week we met with the Governor’s negotiators late into the night several times. We continue to make progress on our individual contract but remain distant regarding pension/healthcare items. Talks at SEBAC have resulted in some mutual understanding on some common sense issues that would not significantly impact members but would address the pension/healthcare concerns expressed by the legislature. However, the Governor’s negotiation team insists that mixed within some common sense changes, that employees should also endure deep, lengthy decreases in take home pay until the budget is stabilized. We find it difficult, if not impossible to accept the Governor’s terms for agreement. There is a better way. We have set forth a path to achieve the $1.5 billion in biennial labor savings and it can be achieved without draining our pockets. A $5.2 billion deficit falls into the category of extraordinary times and we will continue to pursue talks in a creative and constructive fashion.
CONTRACT
Contract negotiations continue. Several mediation sessions have been held, with the most recent meeting occurring on Tuesday, May 9th. These sessions have been productive, each party has addressed the mediator on a variety of topics, ranging from AWS to voluntary schedule reductions. On several issues, we have found common ground and can report progress has been made in mediation. While we can report progress on some issues, we still have many issues that require resolution. It is our hope that we can achieve resolution via mediation as the only other method of resolution is via binding arbitration. Binding arbitration is not a process that either party truly welcomes as it usually results in negatives and positives for both sides. In any venue, we remain committed to the process - we are committed to the membership.