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Richard A Carletta
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Unions watch, wait and speculate
With cuts looming to offset deficit, state workers anticipate sharing pain, but don't know how much
By JOEL STASHENKO, Associated Press
First published: Monday, January 13, 2003 ALBANY -- Sometimes, a little knowledge is worse than none at all.
Less than three weeks before Gov. George Pataki proposes his executive budget for fiscal 2003-04, leaders of state worker unions say they have little more than hints to go on when gauging how their members will be affected by Pataki's plan to offset the state's $10 billion budget shortfall over the next 15 months.
"Rumors become fact," said Danny Donohue, president of the Civil Service Employees Association. "The members we represent at home who are asking to know what's going on, we can't give them anything more than what we pick up in the newspapers and on television. It's speculation. And the apprehension is going to get worse."
Pataki has delivered two major addresses so far in 2003 -- his inauguration speech on New Year's Day and his State of the State address on Jan. 8 -- and referred in only the vaguest terms both times to how he wants to attack what he concedes is a budget "crisis."
In the State of the State speech, he said, "While seeking to avoid layoffs, we will work with our public employee unions to further reduce the size of the state work force and make government the most efficient it can be."
Donohue and his counterpart at the Public Employees Federation, Roger Benson, agreed on what improving efficiency means in the context of budgets and contract negotiations.
" 'Improving efficiencies' is doing the same amount of work with fewer people," Benson said. "That's our contribution to solving the budget crisis. We are willing to take on more work, but we expect that the budget dilemma is going to be shared by everyone, including big business."
The Civil Service Employees Association (CSEA) and the Public Employees Federation (PEF) together represent about 135,000 of the state's 193,000 workers.
Both union leaders have watched as Connecticut Gov. John Rowland has warred with unions representing his state workers. The Rowland administration has sent pink slips to nearly 3,000 state workers, and about 800 have been laid off so far. Rowland is seeking givebacks in wages, concessions in health care coverage and a wage freeze next year from state workers.
Benson said the labor dispute developed in Connecticut because Rowland does not have the positive relationship with his unions that Pataki enjoys, generally speaking, with public employee unions in New York. Pataki sought to enlist public worker unions in a cooperative recovery effort after the crisis of Sept. 11 in New York, and things have been more or less agreeable since then.
That could all change, however. First will come the possibly painful details for public workers of Pataki's budget plans on Jan. 29. A few days later, unions plan to begin bargaining a new contract with the state. The old pact, agreed to in 2000 after bitter negotiations and retroactive to 1999, expires on March 31.
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Richard CarlettaUtica, NY
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Total Posts: 104 | Joined May 2002 | Posted on: 1:44 pm on Jan. 13, 2003 | IP
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Richard A Carletta
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RE: Early Retirement Incentive Update
Part A
The following agencies have either offered Part A of the ERI or are currently offering Part A:
Aging, Attorney General’s Office, Department of Civil Service, Commission on Quality Care for the Mentally Disabled, Department of Motor Vehicles, Higher Education Services Corporation, Division of Housing and Community Renewal, Inspector General’s Office, Office of Alcohol and Substance Abuse Services, Office of Children and Family Services, Office of General Services, Office of Mental Health, Office of Mental Retardation and Developmental Disabilities, Office of Real Property Services, Office of the State Comptroller, Office of Temporary and Disability Assistance, Office of Parks, Recreation and Historic Preservation, Division of Parole, Public Employees Relations Board, State Insurance Fund, State University of New York, Department of Taxation and Finance, and the Office of Tax Appeals.
Of the agencies that have not offered Part A of the incentive;
v The Department of Labor won't offer Part A unless there are reductions in other agencies and they need to be placed in DOL via §78 of the Civil Service Law. They have done a survey of interest. If an incentive will be offered in Labor it will not happen until after the Executive budget is announced.
v The Department of Transportation is saying they are going to open a window but have not yet.
v The Department of Correctional Services has been considering a window since May and still has not asked the Governor’s Task Force for permission to open a window.
The Office of Mental Health has asked for approval from the Governor’s Task Force for another ERI window. No specifics are known at this time.
The Governor’s Task Force has informed PEF that they have changed their interpretion of the seniority provisions in the law. To date, agencies have offered the ERI to the most senior person working in the targeted title and work location. The Task Force has said that they will allow agencies to offer the ERI to the most senior person in the title and work location who has already expressed interest. This means that agencies will not have to canvass the most senior employees who have not expressed interest. The Task Force has agreed that if a more senior employee, in the targeted title and work location who has not already expressed an interest, expresses an interest, in writing before the application deadline (not less than 21 days prior to the end of the open period) they will get the ERI.
It is important that if you are even remotely considering taking advantage of the ERI that you express an interest as soon as possible. The law requires this expression of interest in writing.
If you have not expressed an interest and change your mind prior to 21 days before the end of the open period it is not too late. You must put your expression of interest in writing and get it to your administration before the 21 day deadline.
Part B
We have been getting a lot of questions from members about the 25/55. The primary question relates to the payment of the longevity award. PEF members retiring under the 25/55 provision of the ERI will not be eligible for the longevity award. The Comptroller’s Office has informed us that you can not be on payroll on the date of your retirement. Since you must retire by March 31st your last day on payroll is March 30th. The contract requires that you be on payroll on March 31st to be eligible for the longevity award.
The law also states that you must apply for retirement “not less than fourteen days prior to the effective date of the retirement to become effective.” So make sure that you apply in time and that your retirement date is no later than March 31st.
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Richard CarlettaUtica, NY
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Total Posts: 104 | Joined May 2002 | Posted on: 9:19 am on Jan. 24, 2003 | IP
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Richard A Carletta
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Unions voice worries over jobs
Albany -- State workers' groups are concerned Pataki's cuts will result in layoffs in education, medicine on local level
By ELIZABETH BENJAMIN, Capitol bureau
First published: Thursday, January 30, 2003
The elimination of 5,000 more state workers' positions are not the only job cuts in New York under Gov. George Pataki's spending plan for 2003-03, state employee union leaders warned Wednesday.
The governor's proposed reductions in state funding for education and health care will spark an avalanche of cuts at the local level, leading to layoffs in a variety of fields statewide, said Civil Service Employees Association President Danny Donohue.
"The governor talks about avoiding 'job-killing taxes' while putting out job-killing proposals that will decimate services, destroy lives and force local governments and school districts to kill jobs or raise taxes to cover the shortfall," Donohue said.
Donohue's criticism was no surprise, given his endorsement in the gubernatorial race last year of Pataki's Democratic rival, former state Comptroller H. Carl McCall. But his sentiment was echoed -- albeit with slightly less vigor -- by Public Employees Federation President Roger Benson, whose union did endorse Pataki.
Benson expressed disappointment that Pataki did not propose a temporary tax increase on big businesses and wealthy New Yorkers to avoid cuts in education and health care funding. He also wasn't happy Pataki left the door open for state employee layoffs.
Benson said PEF would work with Pataki to avoid layoffs and would not hesitate to "take the fight to the streets" if necessary.
The state has yet to fulfill Pataki's November 2001 call to cut 5,000 jobs. So far, about 3,300 have been eliminated, according to the Budget Division. Officials hope early retirement incentives will help them reach that goal by April. With the additional 5,000 job cuts Pataki seeks, the state would have 186,000 employees by the end of 2004.
Assemblyman John "Jack" McEneny, D-Albany, said he fears the Capital Region would be disproportionately hurt by the reductions given the concentration of state jobs here.
Union leaders also voiced concern over Pataki's proposal to abolish the Wicks Law, which raises the cost of public-construction projects by requiring them to be bid out as multiple contracts. They also questioned a proposal to change binding arbitration laws that force governments to accept the rulings of outside arbitrators in union contract disputes. Pataki wants these rulings to take into consideration a municipality's ability to pay for salary and benefits increases.
CHANGE FROM 2002-2003: State work force would drop from 196,000 in 2001 to 186,000.
PATAKI WANTS: In November 2001, Pataki called for a 5,000-job reduction, and his budget eliminates another 5,000 jobs, which could include 1,500 layoffs.
REALITY CHECK: Senate Majority Leader Joseph Bruno, R-Brunswick, said he believes Pataki will offer anyone who loses their job "transfer training" and help them become eligible to work in a different state agency, adding: "We can't just put people out on the street." The state, after offering an early retirement incentive, is still about 1,700 people short of the first 5,000 cuts Pataki called for. State employee union leaders oppose the job cuts.
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Richard CarlettaUtica, NY
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Total Posts: 104 | Joined May 2002 | Posted on: 8:46 am on Jan. 30, 2003 | IP
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Richard A Carletta
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Outlook is cloudy for state workers
Albany -- Officials say Pataki hopes to shrink payroll
without layoffs; tough contract talks foreseen
By JAMES M. ODATO, Capitol bureau
First published: Thursday, February 13, 2003
Upwards of 1,785 state workers are in danger of losing their jobs, but the Pataki administration hopes to avoid layoffs as it tries to trim the work force and close an $11.5 billion deficit, officials said Wednesday.
The state also has no money for employee raises, and expects new contract negotiations could go well into 2004.
George Madison, director of the Governor's Office of Employee Relations, and Civil Service Commissioner George Sinnott emphasized during a legislative budget hearing that Gov. George Pataki wants to avoid layoffs.
"A layoff is a family tragedy," said Madison. "His record has been to avoid layoffs."
Madison and Sinnott said early retirement incentives seem to be working as 5,400 people have applied to retire this fiscal year, which ends March 31. Pataki wants to cut 5,000 jobs for the second year in a row.
Pataki's budget calls for closing psychiatric facilities, merging disability research facilities and selling SUNY teaching hospitals, which would result in hundreds of lost jobs. He anticipates job cuts in mental health, child and family services, transportation, corrections and environ@@hyphen@@mental conservation. But he plans to beef up public security and add 1,615 jobs, largely in health, mental health, State Police, transportation and motor vehicles, creating openings into which employees could potentially transfer.
Roger Benson, president of the Public Employees Federation, said the state can't rely on retirements and attrition to cut 5,000 jobs, and many people can't be redeployed.
"You don't move a neuroscientist to the Department of Motor Vehicles," he said, referring to the proposed closing of the Institute for Basic Research on Staten Island.
Sinnott and Madison said Pataki budgeted no money for union raises. Pataki also plans a more-than $70 million cut in employee benefit costs, in part by increasing worker medical insurance contributions by five percentage points.
Madison said he doesn't expect to complete contract negotiations for more than a year. Most state employee union contracts expire next month.
"I expect these negotiations will be difficult and protracted," said Madison.
Civil Service Employees Association President Danny Donohue, whose union began contract talks Wednesday, said CSEA will fight Pataki's "slash and burn" strategy of closing and privatizing state facilities, cutting services, and forcing local governments to raise property taxes or also cut services. Madison's comments, he said, border on bad faith bargaining.
Benson, whose union began contract talks with the state about two weeks ago, said PEF expects raises of 3.5 percent to 8 percent a year over three years. He noted the stock market could rebound or Pataki might find new revenue.
Both union bosses suggested raising the income tax on relatively wealthy people to raise $3 billion to $4 billion and help Pataki close the deficit.
Pataki has said that he is against such "job killing" taxes, but several legislators are warming to the idea.
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Richard CarlettaUtica, NY
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Total Posts: 104 | Joined May 2002 | Posted on: 6:57 am on Feb. 13, 2003 | IP
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Richard A Carletta
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Also Tuesday, Pataki extended the period for agencies to offer early retirements to targeted positions. Agencies had until the end of December to offer the incentives. The extension runs from Feb. 12 to March 31. The governor is trying to cut 10,000 jobs by March 31, 2004 to get the work force to 186,000 positions. The early retirement program is part of an effort to close a $2.2 billion budget gap this year. Next year's gap is pegged at $9.3 billion.
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Richard CarlettaUtica, NY
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Total Posts: 104 | Joined May 2002 | Posted on: 7:11 am on Feb. 13, 2003 | IP
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Richard A Carletta
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ERI savings slim pickings for state
By SHERRY HALBROOK
The state’s 2002-03 fiscal year is running out, and your chances of taking advantage of either of the two early retirement incentive (ERI) options enacted last year are fading with it.
The state held off on opening the 90-day window for the 25-55 option until the last allowable minute — January 1.
Unfortunately, the state is withholding this option from 30 PEF titles containing 186 PEF members otherwise eligible. Most of these are at the state Office of Mental Health.
PEF will challenge the state’s claim that these employees are critical to the state workforce for health and safety reasons and that it must reject any of these members’ application for early retirement.
Some members at the state Office of Mental Retardation and Developmental Disabilities were offered the traditional ERI in January.
All opportunities to take advantage of the 2002-03 legislation expire March 31, but PEF is already pressing the Legislature and governor to enact a better offer this year.
The union wants one that’s permanently open to all state employees who meet the age and service requirements, and not linked to elimination of the vacated positions or layoffs.
In light of deep budget deficits, members often ask why the state doesn’t let every eligible employee take advantage of early retirement offers.
According to PEF Assistant Director of Civil Service Enforcement Marty O’Connor, “Early retirements don’t save the state as much money as you might think. The cost of the incentive is borne by the employer, not the Retirement System.
“In fact, if the vacated positions are filled, it can end up costing the state money after a few years,” O’Connor said.
PEF was successful in getting part of the language removed from the 2002 ERI legislation requiring the state to eliminate any positions vacated by employees taking the ERI.
However, the state continues to use the ERI as a way to eliminate positions without laying off the employees in them, “because it simply doesn’t save enough money if it refills the positions,” O’Connor said. It costs the state 60 percent of the employee’s final salary if he or she takes advantage of the ERI to retire. Spread over five years, that’s 12 percent annually .
For a salary-grade-18 employee at the job rate, 60 percent of final average salary is $30,506 — an annual cost to the state of $6,101 for five years.
If the state refills that grade 18 position at the hiring rate, it will save $9,993 on the new employee — the difference in pay between the hiring rate and the job rate — the first year, less the $6,101 it’s paying the retired employee, for a net savings of just $3,892. As the new employee moves up the annual salary steps, the state’s net savings drop.
“While there will be a small savings in the first couple of years, in the fourth and fifth years the state loses money,” O’Connor said.
Although the 2002 legislation made the traditional ERI available to all state agencies, many chose not to offer it to any employees, or only to a few employees.
“They don’t offer it,” O’Connor said, “because the state expects enough positions will be vacated at that agency by ordinary attrition and neither a retirement incentive or layoffs will be necessary.”
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Richard CarlettaUtica, NY
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Total Posts: 104 | Joined May 2002 | Posted on: 8:21 am on Feb. 21, 2003 | IP
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Richard A Carletta
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Got ERI?
2002-03 early retirement window closing in March
By SHERRY HALBROOK
As the clock runs down on the state’s 2002-03 early retirement incentive (ERI), the Governor’s Task Force on Work Force Management has thrown open the door for all state agencies to submit last-minute plans to offer the traditional or “Part A” option, even the two dozen or so agencies that have already offered it once.
Agencies just have to get approval to offer Part A to eligible employees in specific job titles and positions. But time runs out March 31, so if you want to take advantage of the Part A incentive, tell your agency now.
A three-month window opened January 1 for nearly all eligible employees at all state agencies for the Part B option, “25/55.”
The state Transportation Department has asked for permission to offer Part A to up to 700 eligible workers, but was still waiting in mid-February for a green light.
It appears the state Department of Correctional Services has asked for permission to offer Part A to nearly 150 employees.
PEF was told the state Labor Department won’t offer Part A unless that agency is directed to free positions to absorb employees displaced by job cuts in other agencies.
The governor has not asked for ERI to be renewed for 2003-04.
Put it in writing
Don’t wait to be asked by your state agency if you are interested in taking an ERI, or you may be left out.
“If you are even remotely considering taking advantage of the 2002-03 ERI, it’s important to express that interest in writing to your agency administration right now,” says Martin O’Connor, PEF’s assistant director of civil service enforcement.
“This is more important than ever because of a recent change in the state’s approach to interpreting the seniority provisions in the law,” O’Connor said. “Traditionally, agencies have offered the Part A option to the most senior person working in the targeted title and work location. However, the task force has said it now will allow agencies to offer the incentive to the most senior person in the title and work location who has already expressed interest. Agencies no longer have to canvass the most senior employees who have not expressed interest.”
But you can still be bumped out of your place at the head of the line.
“If a more senior employee in the targeted title and work location, who has not already expressed an interest, submits their expression of interest in writing at least 21 days before the end of the open period, he or she will get the ERI,” O’Connor added.
Give two weeks notice
Apply right away if you want to take advantage of the Part B (25/55) option.
“You must apply for retirement at least 14 days prior to the effective date of the retirement, so make sure that you apply in time and that your retirement date is no later than March 31st,” O’Connor said.
Although the Part B option is open to most eligible state employees at all agencies, it was not offered before 2002-03 and many PEF members have questions about how it will work, O’Connor said.
“The primary question relates to the payment of the longevity award. PEF members retiring under the 25/55 provision of the ERI will not be eligible for the longevity award because you cannot be on payroll on the date of your retirement,” O’Connor said.
“Since you must retire by March 31st, your last day on payroll is March 30th and that prevents you from meeting the contractual requirement that you be on the state payroll on March 31st to be eligible for the longevity award,” he explained.
However, the law specifically protects longevity awards for those retiring under Part A.
PEF has been collecting the names of its members who were specifically exempted from the Part B offer and who want to fight their denial of eligibility for the 25/55.
If you are interested in being part of a lawsuit, or know someone who is, contact the PEF Office of General Counsel immediately at 1-800-342-4306.
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Richard CarlettaUtica, NY
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Total Posts: 104 | Joined May 2002 | Posted on: 1:14 am on Mar. 7, 2003 | IP
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Richard A Carletta
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Time almost up for taking ERI
This week is the deadline for notifying your state agency that you want to take the Early Retirement Incentive. Some agencies have given their employees until this Monday, March 10, to submit their request. The deadline for all other agencies is next Monday, March 17.
Although some agencies are still waiting for final approval of their ERI plans from the Governor’s Task Force on Work Force Management, employees must submit their notice of intent to take the incentive by the March 10 or 17 deadline, whether their agency’s plan is approved or not.
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Richard CarlettaUtica, NY
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Total Posts: 104 | Joined May 2002 | Posted on: 1:38 pm on Mar. 11, 2003 | IP
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Richard A Carletta
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6,000 approved for early retirement
Albany -- Governor optimistic firings can be avoided but keeps option
By ELIZABETH BENJAMIN
First published: Thursday, March 20, 2003
Gov. George Pataki is optimistic that he won't have to lay off state workers after an early retirement incentive program ended this week with 6,000 employees approved to depart.
With the number still well short of the 10,000 jobs Pataki hopes to eliminate by the end of 2004, however, the state is not entirely ruling out having to fire people by next year.
The state has no plans to offer another early retirement incentive similar to the one that ended Monday, which will cost New York an estimated $50 million this year, Division of the Budget spokesman Kevin Quinn said.
Nevertheless, Pataki aides say he is confident he will be able to reach the 10,000 mark without layoffs through attrition and interagency transfers.
"We expect through attrition and the transfer options we put in place we will be able to meet our goal," said Quinn.
Still, with the state grappling with an $11.5 billion deficit and more shortfalls projected in future years, layoffs aren't entirely off the table. "Obviously, given the tremendous fiscal challenges we're facing, nothing can be ruled out," Quinn said. "We're making every effort possible to avoid layoffs."
In November 2001, Pataki set out to cut 5,000 positions by the end of the current fiscal year, which ends on March 31. In his 2003-04 budget proposal, he called for culling an additional 5,000 jobs.
Roughly 4,100 workers have already left the payroll, according to the Budget Division. There are currently about 192,000 state workers. If the governor succeeds in getting rid of all 10,000 positions, New York will have 186,000 employees. That's an estimated average savings of $40,000 to $45,000 per job a year, including benefits.
If all 10,000 jobs are eliminated, Pataki will have reduced the state work force by 25,000 jobs, or 12 percent, since taking office in January 1995, Quinn said.
The state does not yet have a final count of how many employees sought early retirement, but it's clear more applied for it than were approved to leave. If their positions were deemed critical to "health and safety," workers were turned down.
The program, approved in May as part of the 2002-03 budget, gave employees a variety of incentives.
Those age 55 or older with at least 25 years of service could retire with no pension penalties. Other employees could retire under a standard retirement plan that offers a month of pay for every year of service, up to three years. Another pool of employees -- age 50 or more with 10 years of service -- were allowed to take that option but sustained a pension penalty.
New York's largest state worker unions -- the Public Employees Federation and the Civil Service Employees Association -- said they vastly prefer early retirement to layoffs.
But they still raised concerns about a possible "brain-drain" caused by allowing too many senior employees to depart, leaving behind a less-experienced work force that will have to take on more work.
At the Department of Environmental Conservation, for example, PEF members said they are concerned the early retirements have left the agency unable to perform oversight and regulatory responsibilities key to ensuring that air, soil and water are clean and safe.
"In DEC, basically anyone who wanted to retire was allowed to retire," said Mike Keenan, an environmental engineer and PEF executive board member. "Now, day-to-day environmental work that we are supposedly mandated to do is not getting done. In my division, we have 125 people and we're losing 25 of them. How are we going to continue doing everything we did before? At some point, you can't do everything that needs to be done."
Quinn said the state was careful in its analysis of which workers should be allowed to retire early to ensure services wouldn't be affected.
"We've taken a wide array of steps to ensure that state government becomes smarter, more productive and more efficient, and that we continue to offer the same level of programs and services that we have always offered New Yorkers," he said.
Unions are also concerned that transfers offered to employees working at state psychiatric hospitals and mental health research centers slated for closure will lead to layoffs. Some workers are being asked to transfer to facilities that are more than 60 miles away from their homes -- a long and expensive commute that not everyone can afford.
"If you work in the kitchen or in housekeeping, you probably can't afford to travel that far," said Maureen Hogle, a social work assistant and PEF member who works at Hutchings Psychiatric Center in Syracuse, one of three hospitals Pataki wants to close by July 1. Many employees there are being asked to transfer to a facility in Utica.
"That commute is $900 a year just in tolls and gas," Hogle said.
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Richard CarlettaUtica, NY
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Total Posts: 104 | Joined May 2002 | Posted on: 6:22 am on Mar. 20, 2003 | IP
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The latest news about the State Hiring freeze
