2009-10 Executive Budget
Alert
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The proposed budget continues the
hiring freeze instituted in 2008. It also
calls for agency consolidations/mergers and
facility closures.
Governor Paterson’s Salary/Payroll
Proposals:
WAGE FREEZE – Elimination of
the 3% salary increase in 2009 – 10.
SALARY DEFERRAL – 5 day salary deferral
for all employees, a one-day reduction per
paycheck for five payroll periods. Payable
upon separation from service or April 1, 2011.
**We believe these actions cannot be
taken without negotiations, and CSEA will NOT
re-open contracts**
Employee/Retirees
Health Insurance
The governor is proposing a reduction
in retiree health coverage for any employee
who retirees with less than 30 years of
service. He would create a sliding scale for
health insurance contributions for future
retirees covered under NYSHIP:
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Currently, the State pays 90% of
premiums for individual coverage and 75% of
dependent coverage for all employees who
retire with more than 10 years of service. |
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Under the governor’s proposal, the
State would now only pay 50% for individual
and 35% of dependent coverage for employees
who retire with a minimum of 10 years of
service. |
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The State’s contribution would
increase 2% for each additional year of
service to max of 90% for individual and 75%
for dependent coverage for employees with 30
or more years service. |
Medicare Part B Premiums –
this proposal would require active and retired
employees to pay a share of the Medicaid Part
B premium. Currently the State pays 100
percent of the premium. This I only for those
covered under NYSHIP.
TALKING POINTS – STATE WORKFORCE
The budget includes destructive cuts
in state services and the state workforce,
while ignoring revenue-raising options.
CSEA members work hard in good times
and bad.
The average CSEA member makes $40.000
per year and retirees have a pension of about
$14,000.
Over many years and numerous
contracts CSEA has fought to ensure that all
former, current and future members earn a
living wage and have adequate pension and
health care in retirement. This budget seeks
to undo those gains.
WAGE-FREEZE – We will not
re-open our contract. CSEA negotiated a
4-year contract that was both fair and
reasonable for our members and the state.
SALARY DEFERRAL – losing one
week’s pay will hurt my family and only cost
the state more in the long-term.
These proposals violate our contract
and we will fight against these changes.
There’s a better way than making it
harder for the people who do the work every
day!
Contact the Governor and State
Legislators
Let them know that services will
suffer if they go forward with these cuts
CALL 1-877-255-9417
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PENSIONS
Tier V - For Newly Hired Employees of the State
and Local Governments
The proposal calls for all State and Local
government employees who are members of New York
State and Local Employees Retirement System (ERS),
the New York State Teachers Retirement System (TRS)
the New York City Employees' Retirement System (NYCTRS),
the New York City Board of Education Employee
Retirement System (BERS) and the New York State
and City optional Retirement Program (OPR) hired
after March 1, 2009:
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Must be 62 years of age before being eligible to
draw a pension benefit (eliminates 30/50 benefit)
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Permanent 3% employee contribution
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10 years vesting
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25 years of service before pension calculation
multiplier increase from 1.66% to 2%
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Reduce the amount of sick leave allowed to be used
for additional service credit from 200 days to 165
days (*we believe this is contractual and must be
negotiated)
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Excludes all overtime payments in final average
salary calculations
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Preserve Essential Services, Jobs and Communities
EDUCATION
PRE-K TO 12
Overall School Aid Cut by $2.5
billion from Expected Levels
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Eliminates $1.8 billion in
expected school aid increases
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Further decrease of $698 million
from 2008-09 funding
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Deficit Reduction Assessment (DRA)
- a one time $1.1 billion assessment would be
taken against the total formula based aids.
Individual school districts will see reductions of
anywhere from 3% to 13% depending on district
wealth.
Pre-School Special Education
- shifts approximately $188.3 million (15%) to
school districts.
BOCES Aid - maintains the
formula resulting in an increase of $33 million to
a total of $706 million
Universal Pre-K - freezes
the 08-09 levels for two years (2009-10 and
2010-2011) delaying previous scheduled increases
STAR - continues the
Enhanced and Basic STAR exemptions, but eliminates
the Middle Class Star Rebate Program
Reserve Accounts - allows
school districts to withdraw funds from the
employees benefits accrued liability reserve
TALKING POINTS
Governor Paterson's proposal to
cut $2.5 billion in school aid would be
devastating to the quality of education students
across New York deserve.
Our schools and students cannot
afford these proposed cuts.
The cuts to school aid means
services will have to be cut and property taxes
will be raised.
Shifting a larger percentage of
the cost of Pre-School Special Education from the
state ad counties to school districts will mean
put an additional burden on school districts.
The Governor calls for a
"shared sacrifice" from everyone except the
wealthy.
Share the sacrifice of this budget
deficit without putting the brunt of the burden on
working and middle-class families be raising taxes
on the wealthiest New Yorkers.
REVENUE
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Governor's Revenue Plan
Over 100 new taxes, fees or
surcharges that will hurt the working class,
but spares the wealthiest
Increase an annual family
budget by more then $3000 |
CSEA's Revenue Plan
Reform Personal Income Tax
(PIT) System
Restore Progressively to the
PIT system, so that wealthiest New Yorkers pay
their fair share |
| Soda Tax - a new 18%
sales tax on soda and other high sugar
drinks |
| Haircut Tax - makes
beauty barbering, manicure, massage, health
salon and gym services to sales tax |
| Entertainment Tax -
imposes a sales tax on movies and sport
event tickets |
| Cable, Satellite TV and
Radio Tax - imposes a sales tax on these
services |
| Beer & Wine - taxes
increased |
| DMV - vehicle & license
fee increase |
| "I" Tax - imposes state
and local sales tax on ipod and mp3 file
download |
| State Park Fees Increase
- for camping, cabin rentals, golf and
marina usage, along with increase on Empire
passport, passes and permit |
| Repeals the Middle Class
STAR rebate check |
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| New York State has cut
its top personal income tax rate by more
than 50% over the last 30 years from 15.375%
to 6.85%. (New Jersey has a top state
personal income tax rate of 8.97%) |
| Under the current system,
someone who makes one billion dollars pays
the same state tax rate as someone who makes
fifty thousand dollars |
| The temporary increases
of 2003 did not have a negative outcome on
the state's economy |
Now is the time for the sate to create a
fair tax system, where all New Yorkers pay
their fair share.
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LOCAL GOVERNMENTS
The proposed budget calls for stagnant aid to
municipalities, reduction in state reimbursement
for county run programs, and a decrease in
benefits for local government employees
| A 0% increase in AIM funding
for most localities |
| Creation of a TIER 5 for
local government employees |
| Eliminating state
reimbursement for various optional public health
projects performed by counties |
| Eliminate the $37.60 per diem
payment of local jails for housing "state-ready"
inmates and parole violators |
| Elimination of the STAR
rebate program |
| Eliminating the Human
Services COLA for 2009-10 |
| Increase in the basic welfare
grant from $219 to $387 by January 2012 |
| Exempt all school district
for 5 years of WICKS law |
| Making it easier for towns,
villages, and special districts to consolidate
or merge with other localities |
| Eliminate certain fraud
prevention techniques for people receiving
certain social services |
Talking Points - Local
Governments
With the cost of gas, groceries, and other
household goods going up well over 3% for the past
year, taking away my COLA of 3% will cause me more
harm than the economy is already doing.
Local government workers are on the front line
of identifying fraud and abuse in social services
programs. By eliminating the need for
face-to-face interviews of social service
recipients, our chances of catching fraud will
decrease.
Municipal governments have been it hard by this
economic downturn as well. Localities need
help more from the state now in order to ensure
that vital services are still provided, and the
safety of all citizens is maintained.
Cutting reimbursements to counties and local
governments for services that they provide will
only force local governments to stop providing the
services.
The creation of a tier 5 retirement system is
the easy way out to deal with a complex problem.
The salaries and benefits of CSEA members are not
what are creating budget deficits.
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