Get Better Informed, Provide Your Home Email Address
TPEA has been working to inform state employees about relevant issues and concerns through our legislative update email program since 2003. TPEA takes pride in being the most reliable source of accurate and timely information on legislative developments and other concerns for active and retired state employees.
However, because this information is sent to your state email address, TPEA is necessarily constrained in the types of information and recommendations that we can provide. TPEA is therefore encouraging all interested state employees to provide their home email addresses, or other non-state email address, so that TPEA can offer you the full range of information we have available. TPEA will not sell or otherwise permit access to these addresses to any other party.
Follow this link to submit your home email address to TPEA.
Cheryl MacBride Endorsed for ERS Trustee Election By TPEA, DPSOA, RSEA and TGWA - VOTE ONLINE TODAY
Cheryl MacBride has been endorsed as the best qualified candidate in the 2009 race for the Board of Trustees of the Employees Retirement System by the Texas Public Employees Association (TPEA), by the Department of Public Safety Officers Association (DPSOA), by the Retired State Employees Association (RSEA), and by the Texas Game Wardens Association (TGWA). Mrs. MacBride has over 23 years experience with the state and currently serves as Deputy Commissioner for Administration for the General Land Office and Veterans Land Board.
Given the recent decline in the value of the ERS Retirement Fund and other challenges facing ERS, it is vitally important that all state employees and retirees participate in this election and that we select the best qualified candidate. Cheryl MacBride has an impressive background in finance and management that will enable her to fulfill the fiduciary duties of an ERS Trustee and which makes her the best qualified candidate among the four contenders.
Voting in the ERS Trustee election begins on Monday, March 16 and continues through April 16. Click here for more information on the candidates. Eligible voters should receive a ballot in the mail. You can vote by mail, or you can vote online through the ERS web site by clicking here. You’ll need your ERS personal identification number to vote online, it is listed on the ballot information you’ll receive in the mail.
Progress of the Legislative Session
Friday, March 13 marked the 60th day of the 140 day regular session of the 81st Legislature. The 60th day of the session is an important milestone in the legislative process since it is the “bill filing deadline” and at the same time the voting threshold to approve substantive legislation decreases under constitutional and other procedural requirements. The vast majority of legislation is filed by the 60th day of session. Thereafter, it requires special approval by each house to introduce most substantive legislation, although such approval is routinely granted in the Senate. Compared with the prior session, the 81st Legislature has seen a substantial increase in the number of bills filed. 4697 bills were filed in the House, an 18 percent increase from the prior session. In the Senate 2447 bills were filed, a 26 percent increase from the 80th session. Overall there was a 21 percent increase in the total number of bills filed, from 5921 bills in 2007 to 7144 in 2009, as of the 60th day.
TPEA has been monitoring and analyzing legislation as it has been introduced. We will provide a listing of legislation of greatest interest to state employees and retirees in our next email update. The best public web site to find or monitor legislation can be found here.
Appropriations Process Crucial For State Employees and Retirees
TPEA focuses its legislative efforts on three primary issues: improving employee compensation; maintaining quality health insurance for active and retired employees; and preserving a strong retirement system that can provide periodic benefit enhancements to ERS annuitants. For the most part, all of these issues are decided in the appropriations process as the two budget-writing committees, Senate Finance and House Appropriations, conduct hearings and put together their versions of the biennial budget, the General Appropriations Act. Competition for limited state funds is always fierce in the appropriations process.
The appropriations process this session has been unusual because of the impact of the federal stimulus package (technically, the American Reinvestment and Recovery Act). Normally the Comptroller’s Biennial Revenue Estimate (BRE) is the final determinant of how much money is available to fund the budget. The BRE this year projected significantly less general revenue would be available compared with the prior biennium, but projected that the state’s “Rainy Day Fund” would have over $9 billion that could be used in the budget process. Subsequent to that, the United States Congress approved the stimulus package, which includes federal appropriations to Texas in the neighborhood of $16 billion. Legislators are struggling to understand how the federal stimulus funds can be used and how they affect the state budget. Many of the federal stimulus funds can only be used for specified purposes-- for highways, Medicaid, or public education for example—but use of these federal funds may free up state funds that would otherwise have been appropriated for that purpose. The federal government is only now providing detailed rules governing the use of stimulus funds. All of this had made the budgeting process even more difficult than normal. As legislators struggle to understand the implications of stimulus funds it has been difficult to secure funding commitments for state employee priorities.
Employee Compensation
Neither the Senate nor the House has yet agreed to fund across the board pay raises for state employees. Some targeted pay increases for specific occupational groups are being granted. TPEA has been working to support a request by TDCJ for a 20 percent pay increase for correctional and parole staff. TDCJ has been plagued by staff shortages and an analysis by the State Auditor’s office indicated correctional employees are the most underpaid employees in state government. The Senate Working Group on TDCJ initially supported the entire 20 percent pay increase, but when considered by the Finance Committee a 10 percent increase was approved and the additional 10 percent raise was put in Article XI of the bill, which is normally a kind of “wish list”. The House subcommittee working on TDCJ put a 5 percent pay raise for correctional staff in Article XI.
In general, the House has been unwilling to fund any major new items until a determination is made how much money is available from the federal stimulus package. State Representative John Otto (R-Dayton), who chairs the General Government subcommittee has expressed the need to consider state employee pay raises, and has suggested 2.5 percent raises in each year of the next biennium.
Retirement Issues
ERS is required by law to update the value of its retirement fund holdings based on a “snapshot” taken on February 28. TRS has the same legal requirement and it has already released information showing that it experienced significant investment losses since its last valuation on August 31, 2008. As reported in this article, the value of TRS’ investments declined by 32 percent in the past 6 months. Although ERS has not yet publicly reported the results of its valuation, it will also report significant investment losses. To give some idea of the scale of its losses TPEA has been informed that while the annually required contribution (ARC) was estimated to be 15.45 percent of employee salaries as of the last valuation, it will increase to over 19.5 percent based on the results of the February 28 valuation.
The deteriorating actuarial condition of the ERS fund will undoubtedly further increase the political pressure to “fix” the problem. TPEA believes it is necessary to address the issue in a responsible way, not based on panic because of temporary market losses, most which are paper losses. The legislation that will likely serve as the vehicles for making changes to ERS have been filed, SB 1404 by Senator Duncan and HB 2559 by Representative Truitt, which are companion bills. These are omnibus type bills, and as filed they do not contain provisions changing retirement eligibility or increasing contributions. Such provisions will likely be added as the legislation moves through the process and key decision makers identify the best course of action to resolve the challenges facing ERS. TPEA did a thorough analysis of the actuarial situation at ERS, available online.
All state employees and retirees need to pay very close attention to the progress of the ERS omnibus bills and any changes that are being considered that could affect you personally. Please sign up for TPEA’s home email updates if you have not already done so. Because we send these Legislative Updates to your work email address we are limited in certain types of information and direction we can provide. It is important that all interested parties have the full range of information to help ensure the best outcome on these matters. Follow this link to sign up for TPEA’s home email list.
At the same time that TPEA is working to ensure that legislators act responsibly in addressing the challenges facing ERS, we also believe that legislators should provide funding for a 13th check for state retirees. While TRS retirees received a 13th check in 2007, state retirees haven’t had any sort of benefit enhancement since January of 2002. TPEA believes that a good case can be made for using either discretionary stimulus funds or money from the Rainy Day Fund to pay for this 13th check. Legislators are discussing this possibility and Representative Craig Eiland has introduced separate bills that would require payment of 13th checks for both ERS and TRS retirees. A 13th check would be a good use of stimulus funds since it would put money in the pockets of retirees all around the state and help to restart our state and national economies.
Newspaper Database Angers State Employees
TPEA has received a number of calls and emails from state employees who are angry that two Texas newspapers posted databases on their web sites enabling anyone to look up state employee salaries by name. State employee salary information is and has been public information under the state’s Public Information Act. After the last legislative session TPEA worked to prevent the posting of exactly this sort of information on the Comptroller’s web site. HB 3430 by Austin Representative Mark Strama was designed to increase the transparency of state expenditures, but it was being interpreted as requiring the posting of salary information by employee name. TPEA was able to work with Representative Strama and the Comptroller to clarify the intent of his legislation, follow this link to see the letter clarifying this issue.
While there is legislation already introduced that could address some confidentiality issues regarding state employee birth dates and possibly other personal information, TPEA fails to see the public benefit of listing every employee’s salary in this way. Employees see this as intrusive and violating of their privacy and it has the potential to cause workplace problems. TPEA believes the best course of action is for the offending newspapers to remove this information from their web sites.
All State Employee Celebration, April 2
All state employees and retirees are invited to join us at the All State Employee Celebration on Thursday, April 2nd from 5:00 – 7:00 p.m. at Scholz Garten, 1607 San Jacinto, in downtown Austin. We’ve lined up a great band, Miles Zuniga and the Reptiles. Miles Zuniga is well known as the singer-songwriter member of Grammy nominated Austin band Fastball. He’ll be leading a group of great Austin musicians playing fun, upbeat power pop music. Bring your state ID to gain entrance to this celebration. Enjoy complimentary drinks and snacks while listening to Miles Zuniga and the Reptiles at historic Scholz Garten. An Apple iPod will be raffled off during this event. This celebration is co-hosted by the Texas Department of Public Safety Officers Association and TPEA.
Watch TPEA’s website www.tpea.org for special event announcements and to read about TPEA’s future schedule.