Legislative Report

Report 09-17
May 22, 2009

LEGISLATURE RETURNS TO A NORMAL PACE

The pace of business at the General Assembly was back to normal this week following the hectic activity leading up to the May 14 cross-over deadline. In the House, the subcommittees of the Appropriations Committee focused on further development of the House proposal for the state’s 2009-11 budget. The House subcommittees must find ways to reduce expenditures by an additional $1 billion beyond the cuts proposed by the Senate as a result of further declines in projected state revenue.

There was only limited committee activity in other areas of interest. The House Pensions and Retirement Committee did not meet. On Wednesday, the Senate Committee on Pensions, Retirement, and Aging listened to an overview of major trends in state demographics presented by staff of the legislative Research Division and Dennis Streets, Director of the Division of Aging and Adult Services.

THE HOUSE BUDGET AND A COLA FOR LOCAL GOVERNMENT RETIREES

As discussed in past editions of our weekly Legislative Report, House Bill 934 was referred to the House Committee on Appropriations after receiving a favorable report in the Committee on Pensions and Retirement. This bill authorizes a 1.0% COLA for local retirees that would be paid from available undistributed gains in the Local Governmental Employees’ Retirement System. House Bill 934 does not require any state funding. The bill has the support of our Association as well as the League of Municipalities, the Association of County Commissioners, and the Board of Trustees of the Retirement Systems.

Leaders of the House Appropriations Committee are being contacted by our lobbyists here in Raleigh. We have asked that they support inclusion of the authorization for the 1.0% local government COLA as a provision in the House budget bill.

This is a critical time for you to contact your Representatives in the House if you have not already done so to ask that they support the 1.0% COLA for local government retirees. A 1.0% Cost-Of-Living Adjustment for local retirees does not cost state or local governments anything because it can be paid from gains in the local retirement system. Also, this COLA would help to regain some of the ground lost in recent years when COLAs have not kept pace with inflation.

We want to express special thanks to members of the Charlotte-Mecklenburg Governmental Retirees Association for the letter that they have sent to the Mecklenburg legislative delegation regarding this issue. We sincerely appreciate your efforts.