Employees of Louisiana may be losing out on pay raises

Louisiana state employees could possibly be facing a salary cut. If the plan is approved, it would be the second year in a row of salary halts. Employee advocates aren’t anxious about this likelihood. Though it doesn’t consist of layoffs, it’s an effective salary cut for employees. Once more this is another measure that is going to keep people looking to payday cash advance loans for survival.

Pay increases in Louisiana State

A $1.6 billion spending budget deficit is what Louisiana is currently facing. Each year, along with annual reviews, employees generally qualify for salary increases up to 4%. Last year, the state froze Louisiana state employee pay raises and saved about $55 million. Gov. Bobby Jindal has suggested extending these salary raise freezes for the 2011-2012 spending budget years to continue the savings. Yearly salary raises, not promotions, would be all that is frozen.

Louisiana dealing with issues with budgets

When it comes to fixing the Louisiana spending budget problem, salary halts seem like the best option. Many are not happy about the idea though. State commission members who represent employees have indicated concern the state is “attempting to balance the spending budget on the back of workers.” The employee supporters say that the pay freeze is going to end up costing the state more money later as it’s like an emergency loan. They are trying at the very least to get cost of living adjustments made. Extreme measures are taken by the state governments to balance the budgets. This is done with layoffs, salary halts and furlough days. Of all the things Louisiana could do, cutting salary raises is not going to hurt much. Balancing the budget is harder for most states.

Louisiana numbers on the budget

Though the state is trying to cut almost $2 billion out of the budget, Louisiana is in a better position than most states, economically. Joblessness in Louisiana is at 7.7 percent right now. That's much better than the 9 percent national average. Louisiana state colleges also have one of the lowest in-state tuition rates in the nation. Right now, proposals are being drawn up by state commissions. March 11 can be when the final decisions can be made.

Citations

Bloomberg

bloomberg.com/news/2011-02-02/no-decision-made-on-louisiana-pay-raise-suspension.html