Hocog, Ind.-Rota and vice chairman of the House Ways and Means Committee, said the cash-strapped government cannot afford to pay its more than 4,000 employees under the $163 million spending level set in 2006 by the last budget bill that became law.
“Now that the override is not possible, I would urge the chair [of the House Ways & Means Committee, Rep. Ray N. Yumul] to entertain the austerity bill. Not a lot like it but if it will save people from being furloughed, we have to go that route,” Hocog told Variety in an interview.
The Fitial administration drafted House Bill 16-223 which Hocog agreed to introduce.
The bill has been referred to Ways and Means.
H.B. 16-223 will implement austerity Fridays and unpaid holidays throughout FY 2009 which ends on Sept. 30.
It also seeks to reduce the government’s monthly contribution rate to the Retirement Fund from 18 to 11 percent.
Further, it allows the governor to use $1 million of nongeneral funds to pay the Retirement Fund to liquidate deficient employer contributions of employees who are eligible to retire but are not allowed to do so unless the government’s share for their benefits is fully settled.
The proposed austerity Fridays this year will be observed on: February 27; March 6 & 20; April 17; May 1 & 15; June 12; July 10 & 24; August 7 & 21, and; Sept. 18.
The proposed unpaid Legal Holidays will be applied to the following: March 24 — Commonwealth Covenant Day; April 10 — Good Friday; May 25 — Memorial Day; July 3 — Liberation Day; and September 7— Labor Day.
