Agreement Reached on State Pay Supplement
Apr 6, 2004, 17:50

Virtually every state employee will receive a one-time pay supplement for Fiscal Year 2004 under an agreement announced by Delaware Gov. Ruth Ann Minner and state legislators on Tuesday, April 6, 2004.

"This agreement, as you know, comes after considerable negotiation and compromise over the last weeks and months, and even a few heated words," Gov. Minner said. "But in the end, we all sat down at a table, talked out our differences and compromised. That is, after all, the Delaware way."

On Dec. 23, 2003, Gov. Minner proposed that virtually every state employee receive a one-time pay supplement of $500 in order to recognize their hard work over the last several years, a period that included repeated budget cuts and a freeze on hiring state employees that led to more than 10 percent of state employee positions being vacant.

The key points of the proposal agreed upon by the governor and members of the General Assembly Tuesday are:

  • A one-time salary supplement for Fiscal Year 2004 at a cost of $22.3 million to the General Fund;
  • For those state employees whose salary is less than $20,000, a supplement of $1,000;
  • For those state employees whose salary is between $20,000 and $25,000, a supplement between $999 and $601, based on a formula;
  • For those state employees whose salary is more than $25,000, a supplement of $600;
  • The supplement amount will count for pension purposes for state employees;
  • The proposal will cover virtually all state employees, including state police, teachers and other school employees and even locally funded education employees. Part-time employees will receive a flat amount of $400;
  • It is designed so that it can be administered by our payroll system; and
  • The amount of the supplement for each employee will be the starting point for those who receive raises in the FY05 budget; that is, no employee will receive a raise in FY05 that is less than their FY04 pay supplement.

"The pay plan we have agreed to is a one-time pay supplement this year and a raise for next year, which, of course, mirrors the scenario I proposed in January," Gov. Minner said. "The details may have changed, but the basic intent is the same: for the administration and the General Assembly to recognize the hard work of state employees over the last several tough years."

Senate and House leaders announced at a news conference on Tuesday, April 6, the intent of both chambers to pass legislation enacting the pay supplement Tuesday evening.

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