DSEA Action!

February 2012

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Legislative Update Gov. Markell's budget proposal matches his words Unlike some governors, Gov. Markell does not hesi- tate to demonstrate that public education is a priority for his administration. T he link to the Governor's proposed budget summary is at: . • There are 111 new professional educator units funded in this budget to keep pace with public school enrollment growth. • There is funding for step increases for public school employees. • There is annualized funding for the 2% pay raises we received at the beginning of January, 2012. • There is a $6.5 million contri- bution for the pension fund (as called for by the pension fund's annual actuarial valuation). • There is $750,000 to continue to lift the salaries of Instruc- tional and Service Aides to the U.S. government's poverty level for a family of four, $22,350. We intend to work with the Governor and the Joint Finance Committee to reduce the number of steps in these two salary schedules this year, as well as to determine just how the addi- tional $750,000 should best be allo- cated or distributed. What's next? The Governor's budget bill will be introduced into the General Assembly. In this state, the "Joint Finance Committee," made up of senators and representatives from both parties will take that budget proposal and use it as a starting point. They will hold hearings with each of the state agencies to hear what they think of the Governor's budget, as well as take questions from the JFC members and other legislators. They will also take testi- mony from organizations and indi- vidual citizens. The hearing for Public Education is February 14 and President Frederika Jenner will be there to comment on the state's funding for public educa- tion. They will then roll up their sleeves and go back over each budg- et line and start penciling in num- bers. Some they will leave the same; others they will increase; and some they will decrease. Each month between now and mid-June, they will pay attention to the state's rev- enue projections (issued monthly by the Delaware Financial Advisory Committee, aka DEFAC), both for this current year (which ends July 1) and next year (Fiscal Year 2013), and adjust their budget numbers accordingly because Delaware' Constitution requires that the General Assembly pass a balanced budget. The revised budget will be dis- cussed by all four caucuses (the Republicans and Democrats of both Chambers) several times. As they near the month of June, they will start putting down their pencils and replacing them with pens, "mark- ing up" what will become the budg- et as they vote on each depart- ment's funding for next year. Thanks to this process, the budget presented to the General Assembly near the end of June normally enjoys much consensus. It is pre- sented as one bill and, although it rarely passes unanimously, histori- cally passes with a large majority in both Chambers, with little dis- cussion. From this process, you can see that talking to legislators way before final mark-up in June is key to realizing any change. Jim Harrison is DSEA's new appointee to the state's Pension Advisory Council. Smyrna Retiree Jim Harrison new DSEA Rep J im Harrison is DSEA's new representative on the state's Pension Advisory Council. By statute, DSEA is entitled to one representative. This group makes recommendations to the State's Pension Board as it sees fit. At the December meeting of the State Pension Board ( ), the Council Chair reported on the group's goals for the 2012 legislative session: Primary Goals • Continue annual contributions by the state to OPEB, with the goal of attaining full funding in the future • Continue to authorize post-retire- ment increases annually for state retirees • Remove the early retirement penalty for state employees Secondary Goals • Use 2% as the only multiplier for the State Employees' Pension Plan • Continue to pay 100% of the annu- al required contributions to the Pension Trust Fund Harrison is retired from Smyrna High School where he taught ag- mechanics (agriculture-mechanics) for many years, retiring in 2008. He was involved in SEA as president, vice president, and negotiations as grievance chair. As the DSEA representative to the Pension Advisory Council, he For the dates, times and locations of the annual workshops put on by the State Pension Office to help state employees understand the state's pension system and their benefits, go to http://delaware pensions.com/calendar/preretirement_workshops.shtml. The spring work- shops are scheduled throughout the state in March and April. 4 February 2012 DSEA ACTION! also attends the important meet- ings. of the SEBC, the State Employee Benefits Committee. This is the group that determines any changes to both active and retired employee health benefits. "Our presence there, along with representatives from DSEA and other state employee unions, does make a difference," says Harrison, "especially last year when we all worked with the Committee to find millions of dollars in cost-saving solutions to the state's health care and pension obligations." Pension board looking at issue of receiving a state pension while still working There appear to be IRS regula- tions that are prompting new pen- sion regulations for Delaware. DSEA's Judy Anderson, CPA, busi- ness manager, is looking in to them also. The Pension Board is considering requiring a six-month separation with any future employer; no "prior arrangements;" and capping the hours worked to no more than 30/week. If these changes are required by the IRS, a federal agency, they would trump the cur- rent state law that allows retired teachers to substitute teach without restriction. "This could affect peo- ple's decision to retire," says Harrison. Stay tuned. Thanks, Jim is the past-chair of the Pension Advisory Council, and was DSEA's representative and pension expert on this council since it began. He continues to serve on the Council as the one at- large appointee. A past-president of DSEA (1975- 76), and retired agriculture teacher from Lake Forest, he continued his advocacy and involvement in the Association upon retirement as DSEA Retired's legislative chair, lobbyist and watchdog of every- thing "pension" in Delaware. We all owe Jim a huge debt of grati- tude. J im Testerman, a DSEA icon, www.dsea.org sions.com/information/gover- nance.shtml http://budget.delaware.gov/fy2013/ budget_presentation.pdf www.delawarepen-

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