Legislators complain about employee pay raises

Advocate staff photo by BILL FEIGState Treasurer John Kennedy told the House Appropriations Committee Wednesday that he gave pay raises to retain employees. Show caption
Advocate staff photo by BILL FEIGState Treasurer John Kennedy told the House Appropriations Committee Wednesday that he gave pay raises to retain employees.

The state treasurer, secretary of state, insurance commissioner and agriculture commissioner gave pay raises to employees this year, despite state operating budget cuts that slashed public services.

The raises came up during budget discussions Wednesday at a meeting of the House Appropriations Committee.

State Rep. John Schroder, R-Covington, complained that many rank-and-file employees went without a pay increase because of budget concerns, while some employees of elected officials got raises. “It’s hard to sit here and say the sky is falling. Oh, but by the way, we’re going to give pay raises,” Schroder said.

The committee’s chairman, state Rep. Jim Fannin, said he never would have thought the money was in the budget to give pay raises.

“I’m going to take the blame because I sit in this chair,” Fannin, D-Jonesboro, told committee members.

A state revenue slump forced the governor to slash state spending in December. Battered women’s shelters were among the expenditures hit by reductions.

State Agriculture and Forestry Commissioner Mike Strain chided legislators Wednesday for scolding him about the raises.

He said state law requires him to give pay raises if he has the money within his budget to do so. He said he saved money through early retirements, fuel efficiencies and equipment sales.

“Don’t imply I’m defyng the will of the Legislature,” said Strain, a former state representative.

Later in the day, Michael DiResto, spokesman for the Division of Administration, stated the current year’s budget for the fiscal year that ends June 30 did not provide additional funding for merit pay raises.

“Cabinet agencies did not provide them. For (fiscal year 2013-14), the budget proposal also does not provide agencies additional funds to pay them but does not prohibit them from being paid from existing funds,” DiResto said by email.

In the current fiscal year, state Treasurer John Kennedy made pay adjustments totaling $82,800 for 11 employees.

His office said the adjustments largely stemmed from job progressions, in which an employee gained expertise, performed a certain amount of skills or gained enough years of experience to move up to a higher pay level.

The treasury’s chief investment officer, John Broussard, received a $25,000 pay raise, bringing his annual salary to $149,999.

Kennedy said Broussard could make at least $300,000 in the private sector and he raised his pay because he did not want to lose him.

“My concern, big picture, is what it says to the rank and file,” Schroder said.

Kennedy said he could enter into consulting contracts rather than retain employees. He said he does not want to go the route of consulting contracts.

Next up was state Insurance Commissioner Jim Donelon, who gave $540,000 in pay raises this year.

Donelon said withholding the raises would have meant writing a letter to the state Department of Civil Service, which oversees state employee pay, saying he did not have the money for 4 percent pay raises. He said he did have the money.

“I could not legally not do it,” he said of granting raises.

Secretary of State Tom Schedler spent $150,000 to raise the pay of 50 Registrar of Voters Office and agency employees, some of whom got a boost by changing jobs. The registrar raises were legislatively mandated.

Strain granted $684,000 in raises to 570 classified employees.

Fannin said most state workers have gone several years without merit pay raises, even though their household bills have increased.

“My commitment ... has been, we’re in it together,” he said.

Like Donelon, Strain said he had to grant raises because he had the money to do so. He said he has downsized his agency by more than 300 people.

“I do the very best I can for the mission I am charged with,” Strain said.

Schroder vowed to offer an amendment to next year’s budget allowing all state employees to receive pay raises if their bosses can generate the savings to fund them.


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Comments (14)


1) Comment by BRmoderate - 14/03/2013

OK Jeff, I knew the math probably wouldn't work out but my point is that public sector executives are seeing their incomes expand while rank and file workers stay static. I am a classified employee of the state serving in a position that makes less than the average you referenced. I'm not asking for a huge bump in pay. I love serving the people of LA and knew going in that I would not make as much as my private sector brethren. All I ask is for a COLA adjustment of 2-4% annually. Is that truly greedy of me?

2) Comment by swinham - 14/03/2013

@jeffsadow: So what are you saying? You think this is all good? I could understand if somebody was attacking Governor Jindal here, but they aren't, and your comments here seem inconsistent with your past positions. Oh well, as Emerson said, "A foolish consistency is the hobgoblin of little minds." Maybe you are not as rigid as you seem.

3) Comment by old yat - 14/03/2013

Give them all raises,rank and file,classified and unclassified,elected,appointed,whomever and whatever!! They all deserve raises,teachers,firemen,policemen,emt's.Give them whatever they want: shorter hours,free cell phones,longer vacations,free healthcare including dental care,not just while they are working but forever,also include their entire family.Let's not forget food stamps and free cheese,I think I covered everyone and everything.Well,what do you think?...... Now how in the hell do we pay for all of the above??Simple we print more money,after all the government is supposed to take of us from the womb to the tomb!!!!All I can say is "I am glad I am closer to the tomb than the womb"

4) Comment by jeffsadow - 14/03/2013

Actually, FTE for unclassified employees has gone from nearly 32,000 under Jindal to around 25,000, while the classified FTE has dropped about 10,000 to about 52,000. Also, LDAF gets almost half of its money from dedications but less than a tenth from its own generation, Insurance generates about 90 percent of its from own resources, and Treasury gets about two-thirds from its own resources.

5) Comment by swinham - 14/03/2013

Given his logical arguments about our utterly ridiculous state budget and efficiencies that could and certainly should be implemented, it is particularly vexing that John Kennedy thought it was okay to give these raises. I find his hypocrisy shameful and his threat to do what he has so heavily criticized, i. e., hire high-priced consultants is appalling.. Donelon may say he had no choice because his employees are not funded with general fund, but he and Commissioner Strain could certainly direct their resources to something other than pay raises (how about services to the public they serve, for example?) and legitimately state they do not have the money for the pay raises. If this isn't possible, the law, or civil service rules certainly need to be changed. The legislature is notorious for their own "do as we say, not as we do" approach to their own budget so this is also a matter of the pot calling the kettle black. CAN'T THESE PEOPLE USE A LITTLE COMMON SENSE SOMETIMES? Do they seriously think the public has any sympathy for them, particularly when they attack others for what they, themselves, are doing?

6) Comment by jeffsadow - 14/03/2013

It's not that easy to reduce pay at the higher levels and redistribute it to the lower. The only employees where you can go in and semi-unilaterally cut pay is for the few thousand at-will ones. But if their average salary is the same as the unclassified average, around $65,000, that's probably going to drive a number of them out of their jobs. So let's double that, which would be everybody making more than $130,000 essentially and are the universe that make more than the governor. There are 525 of them with a total payroll of about $78.5 million. Dock them 10 percent, and that's $7.85 million to be spread around 78,500 employees or $100 bucks each. That would be an average raise of about 0.2 percent.

7) Comment by foldgers - 14/03/2013

And were these the same legislators who were trying to give themselves a raise not too long ago? When they are allowed to be "lobbied?" I think lobbying is the worst thing allowed. But legislators will NEVER make it illegal because they get free food, drinks, trips, campaign donations, goods, services and so forth. Yes, some items are now "illegal," but do you really believe that nothing wrong goes on? I know a few who have had free trips to "conferences" and they get to get "cheap" superbowl tickets with no tracking to see if they actually used them, and didn't sell them...funny since the Saints get MORE state money if the superbowl comes to Louisiana... see a pattern? They are the joke, well, most of them, in my opinion.

8) Comment by foldgers - 14/03/2013

biglsufan, pretty much ALL state agencies have gone without raises since the "poor economy" began. They all, well most, ran within their means that was allowed to them by the state. And for the past 3 years, some maybe 4 or 5, no agencies gave raises. NONE. There were hiring freezes and yes, there were MANY lay-offs of civil service employees over the past 4 or 5 years. Go ahead and look at the number of classified employees 5 years ago and look today. I believe unclassified positions went up, but you can thank Bobby for that. As far as the few depts who gave raises, it is my understanding that Agriculture and Insurance are pretty much self sufficient, meaning they make their money and do not rely on the state funds nearly as much as other departments. And not receiving a pay increase for three years in a row is just like getting a pay cut, especially with all the money the Fed is printing. But, once again, last year was the first that classified employees in those departments received raises in the last 4 years, classified positions were laid-off as well, these departments make the majority of their budget, they have also decreased travel (which I was ALWAYS against) and as a result they had money in their budget to give the raises.

9) Comment by BRmoderate - 14/03/2013

Paychecks have remained static while life gets more expensive for most state employees. The lack of job availability in the state makes "moving out and up" near impossible. Cut the exorbitant executive salaries in state gov't by 10% and use that money to fund a 3-4% increase to rank and file workers. It will not only help those employees but it will boost our state economy as they will most likely spend those funds in state.

10) Comment by biglsufan - 14/03/2013

As a business owner, I have taken a PAY CUT three years in a row. I'm running my business more efficiently to not have to let workers go. Why did it take a poor economy for these state departments to run more efficiently to save enough money to give raises? They should have been doing this all along to save from having to pay taxes. The same goes for the federal government. The only reason we get in this situation is because miss management. The sad thing is we can't fire state civil service workers that easy. If we were able to hire and fire to get more productivity, we would be able to pay more because we are getting more from fewer employees and still save a lot of money. To many brother in law deals when it comes to hiring state workers has us bloated and inefficient.

11) Comment by tball - 14/03/2013

I second that Cousin Dave..

12) Comment by Cousin Dave - 14/03/2013

Kennedy, Schedler and Strain need to be run out of town on a rail!

13) Comment by teacherguy - 13/03/2013

Kennedy said in an article a week or so ago, the governor's proposed budget doesn't make sense...there is money, it just isn't being used properly...now you are going to attack those agencies that are managing their money properly??? Maybe the legislature should quit pretending to know what they are doing and let these guys apply their financial prowess to the state's overall budget??? These guys know how to keep employees even in the midst of starving resources...but as this legislature has proven, it would rather convert the public school system to that of a pathetic RSD (charter/voucher/5-week TFA non-certified teachers), than to pattern it after a thriving Zachary/Ascension (mostly public/experienced/certified teachers)...and it would rather attack state departments that have managed budget cuts successfully (finding $ for raises despite cutting positions) instead of asking them to share how they did it with other departments.

14) Comment by zealer99 - 13/03/2013

"State Rep. John Schroder, R-Covington, complained that many rank- and-file employees went without a pay increase because of budget concerns while some employees of elected officials got raises." There has been budget concerns for the last several years and it comes to a point where it is a lifestyle rather than a fad. We are losing our best and brightest (students, employees, professors, and teachers) during this multi-year exercise in pillage and plunder, bait and switch, along with some flashy smoke and mirrors. Both of my children have left the State in search of better opportunities and have found them, there are many parents with the same story. We have a few elected officials who see the wisdom of squeezing their budgets to maintain their employees and the unwise ...."Rep. Jim Fannin, said he never would have thought the money was in the budget to give pay raises." Mr. Representative sir, there is a lot of money, a lot of money wasted in personnel costs on personnel who have a position but don;t work. Every agency has employees who either sit around and chat (taking up time from other people who might be working if they has the chance) and other people who slip off the job site at every opportunity. Mike Foster sent out teams to root out employed non-workers and un-employ them and he was too successful.