February 2, 2024 — The PEF Legislative Department completed its initial analysis of Gov. Kathy Hochul’s 2024 Executive Budget, highlighting which proposals the union supports or opposes. The Statewide Political Action Committee is finalizing the priorities this week. Tier 6 pension reform and a proposed bullying law are on top of the “support” list, while stopping prison closures, the design-build program, the interstate nursing compact, and changes to retiree health care top the “oppose” list.
Supporting vital priorities
“We have a busy year ahead of us, with some vital issues outlined in the governor’s budget,” said PEF President Wayne Spence. “Everyone knows the state is grossly understaffed and underpaid. Some of our priorities address those issues, like reforming the Tier 6 pension plan and fighting bullying in the workplace. We are asking members to support us by sending letters and participating in campaigns.”
Public-sector pay and benefits have fallen behind the private sector and New York must take strides to improve benefits to recruit and retain a talented workforce. One way to address this is by improving the Tier 6 pension plan.
Some gains were made in the last legislative session, including reducing the vesting period from 10 years to five and removing overtime worked from 2020 to 2024 from the calculation of employee contributions in Tier 6.
But more must be done. PEF supports reducing employee contributions, increasing the 2% pension factor at 20 years of service, restoring the final average salary calculation to a three-year window versus the current five-year window, and re-establishing the ability of career employees to retire at age 55 or older with 30 or more years of public service. Taken together, those changes could help the State make meaningful progress towards filling 12,500 vacant positions.
Opposing harmful proposals
“Budget season is also about standing against proposals that will hurt our members and the people they serve,” President Spence said. “We will be educating legislators on the pitfalls and dangers of some legislation, such as prison closures, the design-build proposal, joining the Interstate Nursing Compact, and making unfair changes to retiree health care.”
Currently, a prison closure requires 12-month notice to staff – a proposal in the governor’s budget would reduce that to 90 days, while also authorizing the closure of up to five prisons across the state. PEF maintains 90 days is not enough time and the proposal lacks transparency. Staff who work at facilities targeted for closure deserve to know. Relocation or transfer upends lives and arrangements can’t reasonably be made in three months. In addition, the space in less populated prisons affords staff some protection. Consolidating more incarcerated individuals into fewer prisons would remove that barrier.
The Interstate Nursing Compact allows nurses to work in other states without the need to obtain additional licenses. While there is an argument that allowing nurses to travel to New York would increase the number of nurses in hospitals, PEF does not support this as a solution for New York. Many of the nurses who are part of the compact are travel nurses, who get paid more than full-time nurses but often do not have the same level of skill or experience. Additionally, there is a shortage of nurses across the country and the compact takes nurses from other states facing the same issue. Finally, there is no evidence in states that participate in the compact that patient outcomes are better; that staff-to-patient ratios are better, or that the over-reliance on existing staff has decreased.
Design-build allows a single contractor to design, construct and inspect an entire project, as opposed to the traditional design-bid-build process, which provides for a separation of the design and build portions. Design-build bypasses competitive bidding laws, labor protections, transparency fairness and impartial oversight. PEF maintains it is not cost-effective; benefits only a handful of large construction companies, most from outside of New York state; and could even lead to serious public safety issues in the future.
PEF is also prioritizing opposition to the Income Related Monthly Adjusted Amount (IRMAA), which would eliminate the state reimbursement for Medicare Part B premiums for retirees and dependents in the New York State Health Insurance Program (NYSHIP). The proposal would greatly impact retirees who dedicated their lives to public service and are now on fixed incomes.
Reaching legislators on key issues
PEF representatives continue to participate in joint Legislative budget hearings on a variety of topics, either in person or via written testimony. PEF leaders have already testified at hearings on health, public protection, and the workforce. A list of hearing dates and times can be found here. The hearings are live streamed.
Getting PEF issues in front of legislators is vital to achieving change in the best interests of members. That’s why PEF is asking members and their friends and family to participate in a letter-writing campaign.
Campaigns include opposition to fast tracking closure of state prisons; fighting back against transitioning services out of SUNY Downstate; stopping the expansion of the design-build program; cleaning up toxic workplaces; fixing New York’s Tier 6 pension plan; rejecting increasing health care costs for retirees; and advocating for skilled nursing care for state retirees.
“Together, our collective voices really do make a difference,” said President Spence. “If you read the PEF ‘Fund our Future’ campaign literature, you will see that many of our ideas were once again incorporated in the budget. Her budget book is even emblazoned with the words, ‘Our New York, Our Future.’”
This year PEF is also hosting a Legislative Reception on February 13 in Albany, where leaders and staff will share PEF’s 2024 Legislative Agenda, which is focused on ways to help the state attract and retain the professionals needed to deliver quality public services.
“Speaking face-to-face with our elected officials helps us drive home the importance of these issues,” President Spence said. “In-person interaction allows for a back-and-forth dialogue, where legislators can ask questions and get real insight into our proposals.”