Legislative Report #08-02

Report 08-02
May 16, 2008

STATE BUDGET WORK BEGINS

The General Assembly spent this first week of the short session in review of the current state budget and Governor Easley’s recommended changes for 2008-09. The subcommittees of the House Appropriations Committee are scheduled to begin work on these changes next week.

The House must act first on the state budget adjustments this year. We urge you to contact your members of the House as soon as possible. Please ask them to support additional appropriations to increase the Cost-Of-Living Adjustment for retired teachers and state employees. Governor Easley recommended only a 1.2% retiree COLA. This is the percentage that can be funded without additional appropriations. The Governor’s proposal for retirees has been criticized by several members of the House and Senate.

SENATE APPOINTS NEW APPROPRIATIONS CO-CHAIRS

The Senate appointed two new co-chairs of the Committee on Appropriations and Base Budget this week. Senators Charlie Dannelly and Charles Albertson will join Sen. Linda Garrou as leaders of this important committee. Dannelly and Albertson succeed Sens. Walter Dalton and Kay Hagan who will serve as advisors to the co-chairs.

BILL INTRODUCED THIS WEEK

Senate Bill 1582: Increase Fire and Rescue Pension (Primary Sponsor – Sen. Hoyle)

This bill would increase the pension for retired members of the Firemen’s and Rescue Squad Worker’s Pension Fund from the current $167 to $172 per month. SB 1582 has been referred to the Pensions, Retirement, and Aging Committee.

House Bill 2081: Increase Fire and Rescue Pension (Primary Sponsor – Rep. Williams)

This bill is similar to Senate Bill 1582 summarized above. HB 2081 proposes to increase the pension amount from the current $167 to $170 per month. The bill has been referred to the House Pensions and Retirement Committee.