Dear SEANC Member,

On Wednesday, May 14, Gov. Pat McCrory released his budget proposal for the 2014 General Assembly session, and state employees and retirees were recognized with a small pay raise that SEANC is asking the General Assembly to improve upon when they take up their individual versions of the state budget.

McCrory's budget proposes $20.9 billion to fund government operations in Fiscal Year 2014-2015. It includes an $809 base salary increase for state employees and a 1.9 percent cost-of-living adjustment for retirees. The $809 is less than the $1,000 the Office of State Budget and Management originally reported and SEANC is awaiting details as to where the other $191 will go.

While the increases are modest given that state employees and retirees have seen virtually no increase at all in six years, McCrory's budget is a welcomed first step in the budget process.

A more troubling aspect of the budget for state employees is a change buried in the Office of Administrative Hearings (OAH) section. The proposal would undermine employees' due process rights and make for an unfair grievance process by moving two administrative law judges from the Office of Administrative Hearings to the Office of State Human Resources to be the sole hearing officers for state employee appeals. These hearing officers, who will serve as the only fact finders, will not provide the impartial forum required by due process since they will be supervised by the State Human Resources Director, who reports to the governor, rather than the impartial Chief Judge of OAH as administrative law judges are currently.

SEANC halted a similar harmful provision from becoming law in last year's State Personnel Act revision and will continue to vigorously oppose it in the legislature should this provision appear in either the House or Senate budgets. 

SEANC is looking forward to an ongoing dialogue and working with General Assembly leaders as the budget process continues to unfold, particularly to maintain vital public safety functions.

McCrory's recommendations include the following provisions:

• Provides for an $809 increase in base salary (not a bonus) for most state employees
• Provides for a 1.9% cost-of-living adjustment for state retirees
• Moves two administrative judges from OAH to the Office of State Human Resources to be the sole hearing officers for state employee appeals
• Cuts 356 positions in the Department of Public Safety
• Consolidates ALE offices
• Closes Fountain Correctional Center for Women and North Piedmont Correctional Center for Women
• Consolidates the management of Tillery and Caledonia adult male correctional facilities
• Eastern Correctional Center will convert from male to female inmates
• Consolidates Adult Correction region offices and eliminates female command
• Reorganizes Department of Commerce to Public-Private Partnership

It is important to remember that this morning’s proposal is the beginning of the budget process and that nothing is final. McCrory's budget will be reviewed by the General Assembly which will then propose its own budget plans.

I recognize that state employees sacrificed during tough economic times and how important it is to you and your families to be fairly compensated for your part in making North Carolina a great place to work and live. I urge you to stay an engaged SEANC member, as together, we continue advocating for public services and the people who provide them. We invite and encourage you to come join our professional lobbyists at the General Assembly and make your voice heard to your legislators.

Sincerely,

Dana Cope
SEANC Executive Director