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NYS Division of the Budget: Andrew M. Cuomo, Governor; Robert L. Megna, Budget Director Division of the Budget Home Page

NYS Division of Budget

Andrew M. Cuomo, Governor
Robert L. Megna, Budget Director

2010-2011 Executive Budget – Briefing Book


State Workforce

I. Overview

State employees deliver services to the public and manage a range of facilities and provider networks.They oversee and administer billions of dollars in program funding and capital projects.

Approximately 94 percent of the State workforce is unionized. Most of the nine employee unions and 14 negotiating units have collective bargaining contracts with the State that provide a general salary increase of four percent in April 2010. There are approximately 12,000 Management/Confidential (M/C) employees who are not represented by a union.

State employees receive an average compensation of $63,750 plus fringe benefits.

The largest State employers are:

Agency Workforce
(3/31/10 Estimate)
State University of New York 41,778
Department of Correctional Services 30,027
Office of Mental Retardation and Developmental Disabilities 21,786
Office of Mental Health 16,297
City University of New York 12,933

II. History/Context

In response to the State’s current fiscal difficulties, Governor Paterson has implemented a number of actions to decrease the size of the State workforce, while minimizing layoffs during a time of economic distress. These include implementing a hiring freeze on nonessential positions, aggressive attrition efforts, eliminating funded vacant positions, and offering a one-time $20,000 severance incentive.

At the close of the 2009-10 fiscal year, the portion of the State workforce that is subject to gubernatorial management is projected to total 132,525. This represents a decline of 5,150 since Governor Paterson took office in March 2008. After implementation of Executive Budget recommendations, the portion of the State workforce that is subject to gubernatorial management would total 131,900 – a decline of 5,775 positions compared to March 2008. When completed, the annual General Fund savings associated with these reductions would be approximately $457 million, including fringe benefits. This savings estimate is based on each agency's average annual salary.

III. Proposed 2010-11 Budget Actions

The Governor will seek to implement various workforce actions to reduce payroll and fringe benefit expenses. These include options such as delaying or reducing payment of the April 1, 2010 four percent general salary increase and implementing a salary deferral. The size of the State workforce will also continue to decline through facility closures, agency mergers, and ongoing management of employee hiring.

IV. Summary of Spending (All Funds)

Category 2009-10
($ in millions)
2010-11
($ in millions)
Change
Dollar
(in millions)
Percent
State Workforce Salary Costs 13,463 13,127 (336) (2.5)
State Workforce Fringe Benefit Costs 5,437 6,007 570 10.5
Total State Workforce Personnel Costs 18,900 19,134 234 1.2
Amounts shown include the Legislature and Judiciary, which are not reflected in the workforce numbers below.

 

Category 2009-10
3/31/10 Est.
2010-11
3/31/11 Est.
Change
Number Percent
Workforce Subject to Executive Control 132,525 131,900 (625) (.5)
Workforce Not Subject to Executive Control 63,850 63,800 (50) (.1)
Total State Workforce 196,375 195,700 (675) (.3)

 

Category Actual
3/31/08
2010-11
3/31/11 Est.
Change
Number
Percent
Workforce Subject to Executive Control 137,675 131,900 (5,775) (4.2)
Workforce Not Subject to Executive Control 62,075 63,800 1,725 2.8
Total State Workforce 199,750 195,700 (4,050) (2.0)

V. Major Initiatives

Gap Closing Actions

Proposal 2010-11
($ in millions)
2011-12
($ in millions)
Workforce Actions that Require Negotiation 250 125
Amortize State Pension Contribution Costs 217 475
Require Medicare Part B Premium Contribution 30 30
Allow Option to Self-Insure NYSHIP 15 30
Total 512 660

The Governor will seek to implement a number of workforce actions to reduce State employee salary costs. These actions are targeted to save $250 million in 2010-11 and $125 million in 2011-12. These may include options such as:

  • Salary Deferral. Personal service savings could be achieved through deferring salary payments in 2010-11 until an employee leaves State service. At such time, employees would be entitled to a lump sum payment based upon the rate of basic annual salary in effect at that time. In no event would the lump sum payment be less than the amount of salary originally deferred. A five-day salary deferral was previously implemented during the 1990-91 fiscal crisis.
  • Delay or Reduction of the April 1, 2010 Four Percent General Salary Increase. A number of bargaining units representing State employees are currently scheduled to receive a four percent salary increase in the 2010-11 fiscal year. The Governor is rescinding, for the second consecutive year, the general salary increase for the State’s non-unionized Management/Confidential employees ($28 million in 2010-11).

A number of actions are recommended that do not require union negotiation to reduce fringe benefit costs and save $262 million in 2010-11.

  • Amortize State Pension Contribution Costs. Local governments and the State will face substantial pension contribution increases over the next five years due to investment losses experienced by the Common Retirement Fund. This proposal would give local governments and the State the option to amortize a portion of their pension costs from 2010-11 through 2015-16. Local governments and the State, if they choose to participate, would be permitted to amortize the portion of their respective pension costs exceeding a contribution rate of 9.5 percent for the New York State and Local Employees’ Retirement System and 17.5 percent for the New York State and Local Police and Fire Retirement System in 2010-11. The contribution rate above which future amortizations are allowed would be increased by one percentage point each year through 2015-16. Repayment of the amortized amounts would be made over a ten-year period at an interest rate to be determined by the State Comptroller. (2010-11 Savings: $217 million; 2011-12 Savings: $475 million)
  • Require Medicare Part B Premium Contribution. The State currently pays 100 percent of the Medicare Part B premium for employees and retirees. The Executive Budget proposal would require employees and retirees to pay ten percent of Medicare Part B premiums for individual coverage and 25 percent for dependent coverage. Currently, the monthly Medicare Part B base level premium is $96. This proposal would increase employee/retiree health insurance contributions by approximately $30 a year for individual coverage and $85 a year for family coverage. (2010-11 Savings: $30 million; 2011-12 Savings: $30 million)
  • Allow Option to Self-Insure NYSHIP. The State would have the option to self-insure all or parts of the New York State Health Insurance Plan. The elimination of insurance carrier risk charges, State and local taxes, and insurance assessments would produce savings for NYSHIP. (2010-11 Savings: $15 million; 2011-12 Savings: $30 million)

Other Workforce Actions

  • Office of Children and Family Services – Facility Closures / Youth Facility Improvement. Two non-secure and one limited secure youth facilities would be closed or downsized due to high vacancy rates (-75 abolitions and -176 attritions) and 169 positions would be added to improve staff-to-youth ratios and mental health services for youth in certain facilities.
  • Department of Correctional Services – Facility Closures. Two minimum security facilities would be closed in January 2011 (-173 attritions) and one minimum security shock facility and one medium security facility would be closed in April 2011 (-399 attritions). Division of Parole – Caseload Reduction and Reduced Membership. Caseload reduction would allow for the elimination of mostly vacant field parole officer positions and a reduction in the Board of Parole from 19 to 13 members (-105 attritions and -6 abolitions).
  • Office of Mental Health – Ward Closures. Two Transitional Placement programs would be created and inpatient services would be reconfigured allowing eight wards to be closed (-226 attritions).
  • Department of Taxation and Finance – Revenue. The Department would invest in new staff across the auditing, collection and enforcement programs to realize $221 million in additional revenue (176 staff).
  • Marcellus Shale. The departments of Environmental Conservation, Health, and Public Service would invest in new staff (29, four and two new positions, respectively) to oversee natural gas drilling in the Marcellus Shale formation.
  • Insurance Department – Replenish Examiner Workforce to Increase Onsite Examinations and Facilitate Health Insurance Premium Initiative (70 new fills). The addition of newly-trained insurance examiners to the Department’s staff would result in savings to the insurance industry by reducing the number of more costly direct-pay examinations for which insurers currently contract with outside vendors to perform. Also included are ten new staff positions to reinstitute Insurance Department prior approval of health insurance premium increases before they take effect and impact consumers.
  • Merger of Select State Entities. To produce efficiencies and cost-savings, several State agencies or public benefit corporations would be merged:

    • The Office of Real Property Services would merge into the Department of Taxation and Finance (298 staff);
    • The State Employment Relations Board would be abolished (-ten staff), and the Public Employment Relations Board would absorb its responsibilities;
    • The Office of Homeland Security would be combined with staff from the Statewide Wireless Network (eight staff), Statewide Emergency Management Office (97 staff), and staff from the Department of State (124 staff) to form the new Division of Homeland Security and Emergency Services; and
    • Criminal justice programs would be consolidated by merging staff from the Crime Victims Board, Division of Probation and Correctional Alternatives, and the Office for the Prevention of Domestic Violence into the Division of Criminal Justice Services (151 staff).

 

    Briefing Book Table of Contents    |    Entire Briefing Book (PDF)

 

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