91±¬ÁÏ

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Governor’s Budget Mandates 3% Salary Reductions for All State Employees

Yesterday, the Governor released her 2011-13 budget, and an obscure section of it mandated that all state employees’ salaries, regardless of fund source, be reduced by 3 percent in both fiscal years of the coming biennium.

For the 91±¬ÁÏ, this means that those employees supported by General Operating Funds, working in the hospitals, supported by grants and contracts, and even funded with self-sustaining, locally-derived funds would receive compensation cuts. While we are still analyzing the feasibility and legality of this wholesale reduction, the Governor’s budget mandates that all state employees receive a pay cut and for the 91±¬ÁÏ, that amounts to $32 million in BOTH FY12 and FY13 (or $12 million per year if we isolate the cuts to just employees supported by our General Operating Fund base).

This action would exacerbate the 91±¬ÁÏ’s state funding cut to 29%.

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