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Consideration Being Given to Withhold State Employee Raise

February 20, 2010

As part of state employee contracts, unionized employees are scheduled to receive a 3 percent raise later this year.  However, there is a provision in law that allows the legislature to reject the pay hike.

The House and Senate have until mid-April to pass by a two-thirds majority in each chamber a resolution which would cancel or lower the scheduled increase.

The move would save about $33.7 million.  The scheduled 3 percent increase for non-union employees was already rescinded as part of the Gov. Granholm’s budget proposal.

The resolution has not yet been introduced.  If the state feels that non-union employees should forgo a scheduled increase, then the same should be true for union employees.

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