December 17, 2010

Governor’s Budget Mandates 3% Salary Reductions for All State Employees

Yesterday, the Governor released her 2011-13 budget, and an obscure section of it mandated that all state employees’ salaries, regardless of fund source, be reduced by 3 percent in both fiscal years of the coming biennium.

For the UW, this means that those employees supported by General Operating Funds, working in the hospitals, supported by grants and contracts, and even funded with self-sustaining, locally-derived funds would recieve compensation cuts. While we are still analyzing the feasibility and legality of this wholesale reduction, the Governor’s budget mandates that all state employees receive a pay cut and for the UW, that amounts to $32 million in BOTH FY12 and FY13 (or $12 million per year if we isolate the cuts to just employees supported by our General Operating Fund base).

This action would exacerbate the UW’s state funding cut to 29%.

A revised brief about this action is available on P&B’s website.