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Cuomo Plans One-Year Freeze on State Workers’ Pay


Gov. Andrew M. Cuomo will seek a one-year salary freeze for state workers as part of an emergency financial plan he will lay out in his State of the State address on Wednesday, senior administration officials said.

The move will signal the opening of what is expected to be a grueling fight between the new governor and the public-sector unions that have traditionally dominated the state’s political establishment.

It will also come days after the New Year’s Eve layoffs of more than 900 state workers, an event that union representatives marked with a candlelight vigil on the steps of the Capitol and outside government offices in five other cities.

“The governor said during his campaign that the difficult financial times call for shared sacrifice,” said a senior administration official, who requested anonymity because he was not authorized to speak publicly about the governor’s address. “A salary freeze is obviously a difficult thing for many government workers, but it’s necessary if the state is going to live within its means.”

While the immediate budget savings from the freeze would be relatively modest — between $200 million and $400 million against a projected deficit in excess of $9 billion — achieving it would be politically meaningful.

And because such a step would not require legislative approval, Mr. Cuomo could achieve it while bypassing the Assembly speaker, Sheldon Silver, and the Democratic-controlled State Assembly, labor’s most powerful allies in Albany.

Of course, a freeze — which Mr. Cuomo promised he would seek during his campaign — would be subject to negotiation with the unions. But labor contracts for the vast majority of the state’s 190,000 employees expire on March 31, giving Mr. Cuomo an opening to seek changes at a time of public unease toward government workers’ benefits.

Salaries, health care and pension benefits for state workers represent one of the largest and fastest-growing areas of spending, accounting for about one-fifth of all state dollars.

On Sunday, a spokesman for the Civil Service Employees Association, the largest union of state workers, said that the association was open to discussions with Mr. Cuomo, but was uncomfortable with unilateral demands.

“There’s a significant difference between negotiating in good faith, and issuing some kind of edict that may or may not be legal,” said Stephen Madarasz, the association spokesman. “It’s really all based on what action follows.”

Public-sector unions around the nation face growing political pressures not only from Republicans but also from their traditional allies among Democrats, as governors grapple with recession, declining tax revenues and pension funds perilously close to bankruptcy.

In November, following the Republican takeover of the House, President Obama ordered a two-year salary freeze for civilian federal workers, subject to Congressional approval.

On Wednesday, Mr. Cuomo is also expected to call for a constitutional cap on state spending that would limit growth to the rate of inflation and for a budget that does not raise corporate, personal income or sales taxes, echoing proposals he made on the campaign trail. He will also repeat his call for a cap on the growth of local property taxes.

Even if he succeeds in winning a freeze, experts said, Mr. Cuomo will ultimately need to tackle more difficult public employee benefits, including a substantial restructuring of the state’s pension system, which faces serious shortfalls in the coming years.

(Read More: NY Times)



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