Finance panel rejects state pay raises


Tight budget means about 15,000 workers won't see salary hikes

By PATRICK JACKSON
Dover Bureau reporter
05/28/2003

Most state employees probably won't get a pay raise in July because the state cannot afford it.
The Legislature's Joint Finance Committee voted Tuesday not to include raises in the 2004 budget for state workers without pay raises or step increases in union contracts. That means all but about 1,000 of the state's 16,300 workers will go without a pay increase in the budget year that begins July 1.
Gov. Ruth Ann Minner did not build a raise for nonunion workers into her proposed $2.4 billion 2004 budget, which the General Assembly committee now is amending for submission to the Legislature next month. A raise of 1 percent would cost the state about $12 million, Budget Director Jennifer "JJ" Davis said Tuesday.
"It's a reflection of our financial situation," said Rep. Joe DiPinto, R-Wilmington West, committee co-chairman. "Given that, it wasn't a hard decision to make."
The committee's votes are important because the General Assembly traditionally approves the budget recommended by the committee with few changes.
Richard Wright, a maintenance worker at Legislative Hall, said he was disappointed but not surprised by the vote. Wright said he'll wait to see what happens in June before writing off hope of a pay boost.
"I've been here for 20 years," he said. "You've got to wait and see, because around here you never know what's going to happen."
The vote is the latest sign of how Delaware's tight budget is constricting services. State revenues have been declining for more than 18 months because of the economy.
Minner's budget for next year includes more than $150 million in spending cuts, and she is seeking tax and fee increases to raise an extra $143 million. Last fall, Minner ordered a hiring freeze on all but essential positions.
If more money became available, Minner said Tuesday, her first priority would be to allow some hiring - not to grant raises.
"All along, we've been hiring in essential jobs like prison guards, state police, 911 operators and doctors and nurses," she said. "But there are a lot of state employees doing double duty right now, and we'd like to help them, if we can."
State revenue estimates have increased since January, but mainly because of one-time additions from unclaimed property and estate tax settlements. Legislators said such windfalls can't be depended on.
"You don't want to pay for continuing obligations with one-time money," DiPinto said. "And there are few obligations more continuing than your payroll."
Michael Begatto, executive director of the American Federation of State, County and Municipal Employees, said he was disappointed no raises are in the offing. But he praised lawmakers for not laying off state workers.
Reach Patrick Jackson at 678-4274 or pjackson@delawareonline.com.

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