To view a description of the proposed cuts, click on the following link: 7-1.24.12 Proposed Spending Cuts as Cleared by the Governor
Calvo clears spending cuts recommendations for submission to legislature
FOR IMMEDIATE RELEASE
July 25, 2012
Governor Calvo has completed his review of proposals by the Spending Cuts Task Force to cut $43 million annually. These are the cuts he has cleared, whichmay avert the need for layoffs, should these programs yield optimal structural cuts:
1. An early retirement program
2. Extension of the amortization period to pay down the Unfunded Liability
3. Reduction of holiday pay to industry standard
4. Elimination of GFD non-productive pay and reduction of GFD overtime to six hours (3-platoon system)
5. Elimination of GFD incentive pay
6. Elimination of annual leave cash out
7. Reduction of paternity leave to industry standard
8. Cap on leave sharing to 480 hours per occasion, limited to medical reasons
Budget director John Rios is presenting these proposals to the legislature today. The Governor’s Office and the Department of Administration are collaborating to design the Omnibus Fiscal Reform Package of 2012, a bill containing all legislative authority to make these cuts and implement this program.
The Spending Cuts Task Force submitted its recommendations to the Governor on July 16. Part of the report explained the need for the cuts and how part of the $43 million in savings should be reinvested to implement the Hay Study pay raises as soon as it becomes clear that $43 million in annual savings will be achieved. That all depends on how many people opt to retire early.
The Governor did not approve all the recommendations. This is the list of cuts the Governor did not approve for proposal to the legislature:
– Elimination of hazardous pay (however, the Governor said such compensation should be built into the base pay of these officers, then this provision of the law should be eliminated)
– Elimination of night differential pay (same as above — build into base pay, then eliminate this provision of law)
– Elimination of nurses’ weekend and certification differential pay
– Elimination of DRT 10 percent premium pay
The Spending Cuts Task Force reminds the budget committee of the legislature that the amount to be saved should be for deficit reduction (payment of tax refunds and vendors), and should not be subject to appropriation. This cash savings should not be considered part of the revenue stream.
The description of each of the cuts is attached.
The process improvement activity to realign the government is ongoing. The team is preparing recommendations based on analyses that have been done.
Please call Troy Torres at 475-9304 or 486-8887 for more information.
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