Legislative Report

Report 09-23
July 2, 2009

STATE OPERATES THROUGH CONTINUING RESOLUTION

The General Assembly this week approved Senate Bill 311: Continuing Budget Authority to maintain the ongoing operations of state government while House and Senate conferees attempt to reach agreement on the biennial budget for 2009-11. The continuing budget authority expires on July 15th.

The bill limits expenditures by state agency to 85% of the level set for them in 2008-09. These limitations do not affect the payment of pensions by the Retirement Systems Division or the payment of claims by the State Health Plan.

The main points of disagreement between House and Senate budget conferees involve the respective tax and revenue packages of the two chambers. The House proposal raises roughly $780 million primarily through tax increases. The Senate proposes to overhaul the entire state tax system, broadening the bases of sales and income taxes but lowering the rates.

The main issue for state retirees is the full funding of the Teachers’ and State Employees’ Retirement System (TSERS). The House proposed budget included funding for both years of the biennium while the Senate budget addressed only the first year. Please call your legislators if you have not already done so and ask that they support the House position on TSERS funding.

OTHER ACTIVITY THIS WEEK

Senate Bill 658 which would designate one of the six gubernatorial appointments to the Supplemental Retirement Board of Trustees for a retired state or local government employee was approved by the House last week. The bill was returned to the Senate for concurrence in a House amendment addressing retirement system contributions for furloughed local government employees. The bill sponsor, Senator Atwater asked that a conference committee be appointed to allow a technical correction to effective dates in the bill.