Vermont Administration Secretary Neale Lunderville on Friday sent state worker union leaders a counter offer to his original proposal to cut wages of the more than 8,000 state employees. Lunderville said on March 10, 2009, that in order to avoid 320 layoffs, the state and union would have to find $17 million in sustainable wage reductions. The union had essentially rejected that proposal and offered their own, which included furloughs and cuts in raises instead of cuts in current wages. In the latest proposal, the Administration increased the floor for a 5% salary reduction from $30,000 in the original proposal to $38,000 in the current proposal; $38,000 is the average private sector salary. Also, the Administration is proposing to extend the salary reduction and medical premium increase items to all three branches in order to make the proposal equitable across state government and lessen the impact on only one branch.
Administration Counter Proposal dated April 3, 2009
General Fund savings
Classified BU COLAs & Steps‐ Executive Branch BU's only: $3,767,114
No Cola/Step other Exec Branch and temps all branches: $1,063,676
Judicial and Leg Exempts: $324,529
Subtotal COLA and Step Savings FY10: $5,155,319
Wellness: $351,255
5% salary reduction for all employees earning $38,000 and above, who have
not already received a salary decrease (classified bargaining unit, managers,
confidential, exempts and temps). Savings for Executive, Legislative, and
Judicial branches: $7,399,944
Employee share of medical premium increase to 25% for those earning under
$38,000, and to 30% for those earning $38,000 and above. Savings for
Executive, Legislative and Judicial branches: $3,493,227
Overtime Savings All three branches & includes temps $544,609
TOTAL $16,944,354
LETTER FROM LUNDERVILLE: