Lawmakers say state cannot afford big pay raise
Posted: Friday, January 09, 2009
PIERRE, S.D. (AP) -- Many South Dakota lawmakers agree with Gov. Mike Rounds that state government cannot afford to give its employees substantial pay raises in a budget crunch caused by the recession, according to a survey by The Associated Press.
More than half the lawmakers who responded to the survey said they do not believe state employees should get a larger pay raise than what the governor recommended in his budget speech a month ago.
House Republican Leader Bob Faehn of Watertown said his discussions with other GOP lawmakers indicates they believe "when times are tough, everybody has to take part."
State government employees in most years have received a 3 percent across-the-board pay raise, with those below the midpoint of their salary range getting an additional 2.5 percent.
In his budget speech to the Legislature in December, Rounds proposed that the across-the-board portion be 1.5 percent for the budget year beginning in July, but he proposed keeping the extra 2.5 percent for those below midpoint in their pay ranges.
The state may not be able to afford even the governor's original proposal for pay raises.
State spending on pay raises and many state programs will depend on new projections of tax revenue made just before the Legislature passes the final version of the budget in late February or early March. If the economy does not recover, further budget cuts may be necessary.
Eighty-two of the 105 lawmakers responded to the AP survey.
Seventeen 17 percent said they believe state employees should get a larger pay raise than what the governor recommended, and 57 percent said the pay raise should not be larger than Rounds had proposed. Another 26 percent are undecided.
A majority of both Republican and Democratic lawmakers agreed the pay raise should not exceed Rounds' recommendation.
Senate Democratic Leader Scott Heidepriem of Sioux Falls noted that many state employees would get a 4 percent pay raise under the governor's December proposal if they got the 1.5 percent across-the-board portion and the additional 2.5 percent for those below midpoint in their pay range. Most lawmakers would oppose any pay raise higher than that because many school teachers will get smaller raises, he said.
Senate Republican Leader Dave Knudson of Sioux Falls said the Legislature tries to give similar increases each year to state employee, aid to school districts and payments to medical providers. But it's difficult to boost spending for those programs beyond the level that general state revenues are growing, he said.
"Obviously we're in difficult economic times for the state," Knudson said.
More than half the lawmakers who responded to the survey said they do not believe state employees should get a larger pay raise than what the governor recommended in his budget speech a month ago.
House Republican Leader Bob Faehn of Watertown said his discussions with other GOP lawmakers indicates they believe "when times are tough, everybody has to take part."
State government employees in most years have received a 3 percent across-the-board pay raise, with those below the midpoint of their salary range getting an additional 2.5 percent.
In his budget speech to the Legislature in December, Rounds proposed that the across-the-board portion be 1.5 percent for the budget year beginning in July, but he proposed keeping the extra 2.5 percent for those below midpoint in their pay ranges.
The state may not be able to afford even the governor's original proposal for pay raises.
State spending on pay raises and many state programs will depend on new projections of tax revenue made just before the Legislature passes the final version of the budget in late February or early March. If the economy does not recover, further budget cuts may be necessary.
Eighty-two of the 105 lawmakers responded to the AP survey.
Seventeen 17 percent said they believe state employees should get a larger pay raise than what the governor recommended, and 57 percent said the pay raise should not be larger than Rounds had proposed. Another 26 percent are undecided.
A majority of both Republican and Democratic lawmakers agreed the pay raise should not exceed Rounds' recommendation.
Senate Democratic Leader Scott Heidepriem of Sioux Falls noted that many state employees would get a 4 percent pay raise under the governor's December proposal if they got the 1.5 percent across-the-board portion and the additional 2.5 percent for those below midpoint in their pay range. Most lawmakers would oppose any pay raise higher than that because many school teachers will get smaller raises, he said.
Senate Republican Leader Dave Knudson of Sioux Falls said the Legislature tries to give similar increases each year to state employee, aid to school districts and payments to medical providers. But it's difficult to boost spending for those programs beyond the level that general state revenues are growing, he said.
"Obviously we're in difficult economic times for the state," Knudson said.
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Gary wrote on Jan 9, 2009 3:37 AM: