House Concurrent Resolution 104 PAG LIN 1 1 HOUSE CONCURRENT RESOLUTION NO. ___ 1 2 BY COMMITTEE ON APPROPRIATIONS 1 3 (SUCCESSOR TO HSB 516) 1 4 A Concurrent Resolution urging state employee unions 1 5 and the Governor to renegotiate and establish a pay 1 6 freeze for the fiscal year beginning July 1, 2004. 1 7 WHEREAS, the Governor and state employee unions 1 8 negotiated collective bargaining agreements in the 1 9 winter of 2003 for wages and benefits for state 1 10 employees for fiscal years 2003=2004 and 2004=2005; 1 11 and 1 12 WHEREAS, the collective bargaining agreements 1 13 negotiated for most state employees provided for a 2.0 1 14 percent cost of living increase during each fiscal 1 15 year as well as 3.5 percent to 4.5 percent step 1 16 increases in pay for eligible state employees during 1 17 each fiscal year; and 1 18 WHEREAS, the estimated total cost to the general 1 19 fund of the state in fiscal year 2004=2005, compared 1 20 to the estimated net 2003=2004 fiscal year cost, due 1 21 to the collective bargaining agreements and an 1 22 increase in other costs, is $69.4 million; and 1 23 WHEREAS, implementing a pay freeze for state 1 24 employees beginning in fiscal year 2004=2005 would 1 25 realize about $18.7 million in savings to the state 1 26 general fund, and $29.9 million in total savings from 1 27 all state employees other than employees under the 1 28 State Board of Regents; and 1 29 WHEREAS, state revenues since the collective 1 30 bargaining agreements were negotiated have continued 2 1 to lag; and 2 2 WHEREAS, in October 2003, the Revenue Estimating 2 3 Conference reduced its projection of fiscal year 2003= 2 4 2004 general fund revenue by $142.2 million, 2 5 triggering the Governor's implementation of a 2.5 2 6 percent across=the=board reduction in state budgets 2 7 for executive branch agencies; and 2 8 WHEREAS, continued budget reductions as a result of 2 9 less than expected revenues make it increasingly 2 10 difficult to adequately fund the priorities of this 2 11 state, including education, homeland security, and 2 12 economic development activities; and 2 13 WHEREAS, many Iowans have endured financial 2 14 sacrifices in the last few years due to layoffs and 2 15 pay reductions in the private sector; and 2 16 WHEREAS, implementation of a pay freeze on state 2 17 employees for fiscal year 2004=2005 would allow the 2 18 state to better fund priorities applicable to all 2 19 Iowans while only requiring a modest sacrifice by 2 20 state employees; 2 21 NOW THEREFORE, BE IT RESOLVED BY THE HOUSE OF 2 22 REPRESENTATIVES, THE SENATE CONCURRING, That the 2 23 General Assembly urges the Governor and each state 2 24 employee union representing state employees to 2 25 renegotiate the current collective bargaining 2 26 agreement applicable to that union and implement a 2 27 wage freeze for the fiscal year beginning July 1, 2 28 2004; and 2 29 BE IT FURTHER RESOLVED, That copies of this 2 30 Resolution be sent by the Chief Clerk of the House of 3 1 Representatives to the Governor of Iowa and to a 3 2 representative of each of the state employee unions 3 3 representing state employees. 3 4 LSB 5446HV 80 3 5 ec/gg/14