Latest news with #stateemployees
CBS News
a day ago
- Business
- CBS News
Minnesota lawmakers continue to finish work behind the scenes, layoff notices go to most state workers soon if they don't pass budget
Minnesota lawmakers continued their behind-the-scenes work on Tuesday as they eye a partial government shutdown next month if they don't complete the next two-year state budget by July 1. Most state employees will receive layoff notices next Monday if a special session approving those spending plans isn't over by then, Gov. Tim Walz's office said. Walz won't officially call lawmakers back to the capitol until all of the remaining bills are ready to go. Lawmakers have been in mostly private meetings to make that happen, finding agreement and then sending it to the revisor's office for drafting. Key lawmakers have been meeting in "working groups" since the May 20, after the regular session ended, to sort out the details of each unifinished bill. Some broader agreements and actual proposals are posted on the Legislature's website, including a K-12 spending package. If they don't complete their work by the deadline at the end of the month, state services and programs would only partially shut down because some parts of the budget did pass before adjournment last month, including funding for the courts, attorney general's office, and agriculture and veterans departments. State workers in those agencies would be held harmless. The last time there was a government shutdown was in 2011. Four years ago in 2021, lawmakers in a divided capitol narrowly avoided one, passing the remaining parts of the budget June 30 during a special session. DFL Senate Majority Leader Erin Murphy told WCCO Sunday she hopes there will be a special session this week, but legislative leaders and key negotiators have blown past other self-imposed deadlines the last few weeks. What's unclear is how the Legislature will approve a part of a budget deal between legislative leaders and the governor that would remove undocumented immigrant adults from a state program providing health care coverage, which is sparking outcry among several DFL lawmakers. Murphy has said it needs to be a stand-alone bill, while GOP House Speaker Lisa Demuth wants it to be part of a broader health package.
CBS News
2 days ago
- Business
- CBS News
Minnesota policy change takes effect as many state employees begin working in-office 50% of the time
A work policy requiring Minnesota state employees to be in the office for 50% of their workdays is now in effect, though some agencies are getting an extension to comply. The change went into effect on June 1, according to Julie Nelson, communications director with the Minnesota Department of Administration. Twelve agencies have been given extensions that range from mid-June to Sept. 2 due to space limitations or equipment needs, Nelson said. The Minnesota Department of Health's facility is undergoing "significant construction" and will adapt to the policy based on the construction schedule. There is an exemption for employees who live 75 miles or more away from their workplace. Gov. Tim Walz made the policy change in March, saying it balances the flexibility of working remotely with the "workplace advantages of being in office." There are 40,000 government employees, and Walz said in March that 60% of them were already back in-person or have continued to be since the pandemic upended workplaces and daily life five years ago. Unions representing tens of thousands of state employees said the change was made without their input. The Minnesota Association of Professional Employees and the American Federation of State, County and Municipal Employees Council 5 said in March that they learned of the change when the rest of the public did. Megan Dayton, president of MAPE, said at that time the unions were considering a strike if there wasn't a reversal, but it wouldn't begin until June 30 — the date the current contract with the state expires.
Forbes
14-05-2025
- Business
- Forbes
Prison Dentist Scored A $1.2 Million Payday From Unused Vacation Days
When the state of California cut a $1.2 million check to a retiring prison dentist last year, it wasn't a bonus or lottery prize. It was a payout for his unused PTO; decades of banked vacation days that turned Dr. George Soohoo's unclaimed time off into a seven-figure windfall. His story, recently chronicled in the Los Angeles Times, illustrates the immense value of unused PTO for employees and, on the flip side, the massive hidden cost that public institutions and businesses quietly carry on their books. From taxpayer-funded leave cash-outs for government workers to private companies racing to cap rollover or pivot to unlimited PTO policies, the fallout from stockpiled unused PTO is both financial and cultural. But it also opens the door for innovation. One emerging idea: allowing workers to trade unused PTO to help pay off student loans, a benefit that merges workplace flexibility with financial wellness. Behind it all lies a simple but costly truth: unused PTO carries real monetary value, and when left unmanaged, it becomes a liability for employers and a missed opportunity for workers. California's $1.2 million dentist is extreme, but he's far from alone. He was one of nearly 1,000 California state employees who retired last year with vacation payouts exceeding $100,000, according to the Los Angeles Times. In total, the state paid out $413 million in a single year to departing employees for unused PTO, including unused vacation days, holidays, and comp time. The financial exposure is massive. California's unfunded liability for unused PTO currently exceeds $5.6 billion, a figure that would need to be paid if all eligible workers retired at once. The problem has worsened since the pandemic, when travel restrictions and remote work left many employees with fewer reasons, or fewer chances, to take time off. While California technically caps vacation accrual at 640 hours, lax enforcement has allowed balances to balloon. And California isn't alone. Cities, counties, and state governments across the U.S. face similar pressures. From police officers to firefighters, teachers to transportation workers, unused PTO payouts have become one of the most underreported costs in public budgets. When a longtime employee retires, they don't just leave, they could walk away with a six-figure check. That exit payment hits the department's budget all at once, creating fiscal pressure and potentially crowding out new hires or public services. The challenge is policy design: while many private-sector companies have moved toward PTO caps or forfeiture rules, government agencies are typically required to treat unused PTO as earned compensation. That means it can't simply expire, it must be paid. This combination of generous accrual, infrequent enforcement, and guaranteed payout creates a liability that grows silently and unpredictably over time. It's not just government agencies struggling with unused PTO liabilities. In Corporate America, unused vacation days are creating a different kind of balance sheet headache. According to a 2015 Oxford Economics study cited in the Wall Street Journal, private employers collectively owe over $224 billion in unused PTO. A newer estimate reported by PYMTS pegs that number closer to $318 billion. For large companies, unused PTO is effectively a growing debt, often running into the tens of millions of dollars. To reduce this burden, many employers cap how much PTO employees can roll over from year to year. Instead of allowing time off to accrue indefinitely, companies typically allow just one or two weeks to carry forward. Anything beyond that either expires or triggers a use it or lose it rule. These policies protect the company from ballooning liabilities and encourage employees to take their time off. In states like California, where unused PTO must be paid out by law, rollover caps are especially important to prevent six-figure vacation payouts. One increasingly popular approach is unlimited PTO, which sounds generous on paper but has a hidden benefit for companies: it eliminates PTO accrual altogether. No accrued time means no accrued liability and no PTO cashout when an employee leaves. While some workers appreciate the flexibility, others end up taking less time off due to vague expectations. From a company's perspective, unlimited PTO may be as much about eliminating unused PTO from the balance sheet as it is about employee well-being. Between 2018 and 2022, the number of companies offering unlimited PTO grew by more than 30%, according to HR platform Namely cited in TechCo. This trend appeals to startups and modern workplaces looking to project flexibility and trust. On the surface, unlimited PTO policies appear worker-friendly; no caps, no accrual, no stress about banked days. But in reality, the financial incentive for companies is just as powerful: no unused PTO means no large vacation payouts at offboarding. For employees, the results are mixed. Without a set number of PTO days, many people take less time off. A defined benefit creates an anchor, something tangible to use or lose. Unlimited PTO, by contrast, can lead to guilt or ambiguity. In some cases, workers avoid taking vacations altogether, fearing they'll look disengaged. That's why companies may benefit from unlimited PTO while employees quietly burn out. Ultimately, unlimited PTO may be more than a perk and part of a strategic response to unused PTO liability. By removing the accrual structure altogether, companies eliminate the need to pay out unused vacation time, effectively de-risking their workforce. This shift may help with retention and recruiting, but it also means employees lose the financial value of unused PTO, which in traditional plans could be cashed out upon departure. As student debt continues to weigh on millions of workers, a new trend is emerging: converting unused PTO into student loan payments. Rather than letting unused time off sit idle or forfeited, employees can opt to trade that value to reduce their debt. With over $1.7 trillion in outstanding student loans, this benefit appeals to younger workers especially, who often carry both financial pressure and a tendency to skip vacation. Some companies now offer programs that allow employees to apply the dollar value of unused PTO directly to their student loan servicer. Instead of waiting for a vacation cashout at separation, workers can proactively direct accrued time toward loan repayment. It's a win-win: employees gain financial flexibility, and employers reduce their unused PTO liability without sacrificing payroll dollars. This trend reflects a deeper shift: the growing intersection of workplace benefits and personal finance strategy. For employees torn between taking time off and meeting financial goals, the ability to redirect unused PTO toward student loans is a powerful alternative. It adds a layer of flexibility and shows how a long-standing liability can be transformed into a student debt solution. In the end, whether you're a taxpayer tracking public liabilities, a manager monitoring the balance sheet, or an employee watching unused PTO pile up, the message is clear: paid time off has real value and real costs. While Dr. Soohoo's $1.2 million payout may be an outlier, it highlights a broader truth: unused PTO doesn't just disappear, it compounds. Choosing not to take time off can have consequences that go far beyond a delayed vacation. By recognizing and addressing the hidden costs of unused PTO, we can build smarter systems that protect both employee well-being and organizational budgets.
Yahoo
11-05-2025
- Business
- Yahoo
As a recession looms, GOP lawmakers need to prepare NC. They're not.
Before he presented the Wake County budget on May 5, County Manager David Ellis weighed various national and state economic indicators, plus one he picked up at his barber shop. 'I listen to folks there,' he said. 'One was a car salesman who lost his job because they weren't selling any cars.' That salesman's misfortune fits with what Ellis and others see coming for the economy and the nation, a serious slowdown and a possible recession. Ellis had planned to draw a budget based on 3% growth in sales tax revenue. He dialed that back to zero. He wanted to propose a 5% raise for top employees. He capped that at 3.5%. 'During COVID, we had to adjust on a daily basis and that's something we're going to have to continue to do,' he said. Around the state and the nation, public officials are girding for a downturn that could become a crisis. Trump's tariff hikes are likely to slow the economy and extending his 2017 tax cuts for the wealthy could require major reductions in federal aid for food stamps, Medicaid and a host of other programs. But North Carolina legislative leaders are not among those preparing for the worst, despite the state being especially vulnerable. Years of tax cuts have hollowed state agency budgets. The vacancy rate among state employees is more than 20 percent. If a recession hits, the state will have little room to cut expenses, even as it copes with lower tax revenue and less federal funding. Unemployment benefits, capped at a paltry $350 a week, won't be enough to sustain workers who are laid off or buffer local economies. Alexandra Sirota, director of the nonprofit N.C. Budget & Tax Center, said she can't account for all of state history, but compared to recent decades, 'We are certainly the most under-prepared we've been for a recession.' Despite the darkening economic forecast, the state Senate's proposed budget calls for accelerating tax cuts that would largely benefit wealthy individuals and large corporations and more spending on private school vouchers. 'The Senate plan is completely unacceptable,' Sirota said. ' It is not a serious proposal for the moment our state is in.' The state House's budget proposal is expected to be released soon. Gov. Josh Stein's proposed budget, which will have little sway in the GOP-controlled legislature, rightly calls for a freeze on tax cuts and voucher spending and an increase in unemployment benefits to a $470 weekly maximum, but the governor should be sounding a louder alarm about the trouble that looms. The Urban Institute's latest tracking of state tax collections found that for median state tax revenues have declined compared to last year — and that's before Trump's tariffs have taken their effect. 'Recent federal policy actions and subsequent economic developments are poised to impact state tax revenues significantly,' the Institute's report said. Between a tariff-related economic slowdown and federal cuts to make way for an extension of the 2017 tax cuts that will cost $4.5 trillion over the next decade, states are likely to face overwhelming revenue losses with huge consequences. The Center on Budget and Policy Priorities ranked North Carolina 20th nationally in terms of federal funds as a percentage of state expenditures – 38 percent, or $34.5 billion in fiscal year 2024. If Congress cuts a significant share of that funding, all states will be in trouble. If North Carolina goes ahead with tax cuts, it will only compound the problem. The response, inevitably, will be to further reduce or eliminate critical services. A more humane response would be for the legislature to freeze scheduled tax cuts and impose an income tax of up to the state cap of 7 percent on very wealthy earners. That would claw back some of the savings they will get from an extension of the federal tax cuts. The NC Budget & Tax Center estimates that the state's top 1% of earners will save $1.8 billion in 2026 under the extension. Tax hikes, of course, are not happening under this General Assembly. Republican lawmakers have cut taxes repeatedly at the expense of schools and services since 2013. But now that the jig is up, the state has no slack and those who brought us to this vulnerable point seem to have no plan for the trouble ahead. Associate opinion editor Ned Barnett can be reached at 919-404-7583, or nbarnett@
