Legislative Report

Report 09-25
July 17, 2009

GeNERAL ASSEMBLY EXTENDS BUDGET DEADLINE

The House and Senate this week adopted a second resolution that continues operations of state agencies through July 31st. The first continuing budget authority resolution expired on July 15th. Budget conferees were unable to reach agreement regarding the best approach to raising nearly $1 billion in new state tax revenue to balance the 2009-11 budget.

The new continuing resolution (House Bill 1504) authorizes state agencies to continue spending for ongoing operations at 84% of the level authorized for the previous fiscal year. The resolution requires notification of employees who are subject to reduction in force upon final adoption of the Appropriations Act (Senate Bill 202).

BOARD APPROVES A (SMALL) LOCAL COLA

The Board of Trustees of the Retirement Systems approved a motion at the regular quarterly meeting on July 16th to grant a 0.1% Cost-Of-Living Adjustment to retired local government employees effective July 1. The approved motion also approved up to a 1.0% COLA if authorizing legislation is approved by the General Assembly. House Bill 934 would provide this authority. The bill currently is in the House Appropriations Committee and has not yet been scheduled for consideration.

This is the time to contact your Representatives in the House. Ask them to contact the co-chairs of the House Appropriations Committee to request that House Bill 934 be scheduled for consideration. Also, ask your representatives to support passage of the bill. Passage of HB 934 does not require any state funding. The local COLA has the support of the Retirement System Board of Trustees, our Association, the League of Municipalities, and the Association of County Commissioners.