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1996 Session

Budget Bill - SB30 (Introduced)

Central Appropriations

Item 528

Item 528

First Year - FY1997Second Year - FY1998
Compensation Supplements (State) (75700)-$10,188,986$46,807,648
Fund Sources: 
GeneralFY1997 -$10,188,986FY1998 $46,807,648

Authority: Discretionary Inclusion.


A. Transfers from this Item may be made to supplement general fund appropriations to state agencies for:


1. Adjusting base rates of pay;


2. Adjusting rates of pay for budgeted overtime of salaried employees;


3. Salary increases for positions with salaries listed elsewhere in this act;


4. Salary increases for locally elected constitutional officers and their employees;


5. Employer costs of employee benefit programs when required by salary based pay adjustments;


6. Salary increases for local employees supported by the Commonwealth, other than those funded through appropriations to the Department of Education; and


7. Increases in the cost of medical/hospitalization insurance for state employees.


This appropriation provides for the compensation adjustments described in Paragraphs C. through G., of this Item, subject to conditions stated in this Item.


B. Transfers from this Item may be made when appropriations to the state agencies concerned are insufficient for the purposes stated in Paragraph A. of this Item, as determined by the Department of Planning and Budget and subject to guidelines prescribed by the Department. Further, the Department of Planning and Budget may transfer appropriations within this Item from the second year of the biennium to the first year when necessary to accomplish the purposes stated in Paragraph A. of this Item.


C. Transfers from this Item shall be used to effect an increase of 3.0% on December 1, 1997, in the base salary, and related employee benefit increases for:


1. Heads of agencies in the Legislative Department;


2. Full time employees in the Legislative and Judicial Departments;


3. The Director of the State Lottery Department and the Director of the Virginia Retirement System;


4. Full-time employees of the State Lottery Department, the State Corporation Commission, the Virginia Workers' Compensation Commission and the Virginia Retirement System;


5. Full-time professional staff of the Governor's Office, the Lieutenant Governor's Office, the Attorney General's Office, Cabinet Secretaries Offices, including the Deputy Secretaries, the Virginia Liaison Office and the Secretary of the Commonwealth's Office;


6. Any official whose salary is listed in § 4-6.01 of this Act;


7. Judges and Justices in the Judicial Department;


8. Commissioners of the State Corporation Commission and the Virginia Workers' Compensation Commission;


9. Locally elected constitutional officers;


10. Full-time employees of locally elected constitutional officers;


11. General Registrars and members of local electoral boards;


12. Full-time employees of Community Services Boards, Social Services Boards, Centers for Independent Living, Juvenile Block Grant Employees, Youth Services Prevention positions and local health departments where a memorandum of understanding exists with the Virginia Department of Health.


13. Full-time employees subject to the Virginia Personnel Act;


D. Faculty salary increases in the second year of the biennium shall be allotted only to those institutions of higher education which have faculty evaluation plans to include regular, rigorous pre- and post-tenure performance reviews acceptable to the Secretary of Education and the State Council of Higher Education.


E. Subject to the rules and regulations of the Department of Personnel and Training and the Department of Planning and Budget, bonus payments, not included in base salary and related employee benefits, may be granted to employees listed in Paragraphs 1-8 below, to the extent that such bonus payments may be funded from existing agency operating expense appropriations. Bonus payments may be provided during each year for sustained exceptional individual performance (when no Incentive Pay Plan increases are authorized), for sustained exceptional team performance, and for recognition of a single extraordinary event by an individual or team.


1. Heads of agencies in the Legislative and Judicial Departments;


2. Full-time professional staff to the Governor's Office, Deputy Secretaries and full-time staff of the Governor's Secretaries, and full-time professional staff of the Virginia Liaison Office and the Secretary of the Commonwealth;


3. Full-time employees subject to the Virginia Personnel Act;


4. Full-time employees in the Legislative and Judicial Departments;


5. Full-time employees in the Executive Department and subject to the Virginia Personnel Act;


6. Any official whose salary is listed in § 4-6.01 of this act, subject to the approval of the Governor;


7. The Director of the Virginia Retirement System and the State Lottery Department;


8. Full-time employees of the State Corporation Commission, the Virginia Workers' Compensation Commission, the Virginia Retirement System, and the State Lottery Department.


F. The Department of Personnel and Training may approve pilot compensation programs within agencies. Such pilot programs shall be funded from existing agency appropriations or from funds provided for increases specified in Paragraph C of this Item, or a combination of both. A report on such pilot program shall be made to the Governor and the Chairmen of the House Appropriations and Senate Finance Committees by October 1, 1997. The Secretary of Administration shall approve any change in compensation plans based on pilot programs, prior to their implementation.


G. The base rates of pay, and related employee benefits, for wage employees shall be increased as provided for in Paragraphs B and C., hereof. The cost of such increases for wage employees shall be borne by funds appropriated to each agency.


H.1. Agencies supported in whole or in part by nongeneral funds shall pay the proportionate share of costs, from nongeneral fund revenues, of wages, salaries, and employee benefits as stated in this Item, subject to rules and regulations prescribed by the Governor.


2. Such nongeneral fund revenues and balances are hereby appropriated for this purpose, including, to the extent deemed necessary by the Department of Planning and Budget, those nongeneral fund revenues available to the colleges and universities as a result of adjustments to the relationships between support from the general fund and nongeneral funds to effect a more equitable distribution of general fund support as described in § 4-2.01 of this act.


I. Out of the amounts for Compensation Supplements $2,119,746 the first year and $14,811,441 the second year shall be transferred to state agencies to implement changes made to the contribution rates to the Virginia Retirement System. The effective contribution rates are as follows:


FY 1997

FY 1988

State Employees

09.85%

10.48%

Judges

32.99%

34.10%

State Police

17.07%

18.38%

              

J. The Director of the Department of Planning and Budget is hereby directed to withhold from agency appropriations amounts appropriated from the general fund for group life insurance contributions in excess of the amounts required. A "premium holiday" will be effected for FY 97 and state agencies will not make a contribution. For FY 98, the contribution rate will be 0.35 percent of payroll. The general fund reduction to be achieved by this action is estimated at $5,308,732 in the first year.


K.1. Payroll dates for state agencies will be advanced by seven days, beginning on January 7, 1997 and continue on a bi-monthly basis thereafter. The December 31 pay period will be liquidated on January 7, 1997. To compensate state employees for this lag in pay, a one time bonus equivalent to one pay period will be paid to state employees on January 1, 1997.


2. The Director of the Department of Planning and Budget is hereby directed to withhold from agency appropriations amounts appropriated from the general fund for compensation in excess of the amounts required in FY 97 for fringe benefits due to the effect of this action. The general fund reduction to be achieved by this action is estimated at $7,000,000 in the first year.