Opposition from the House could compromise plan

The Arizona Senate approved a reduced rendition of the pay raise for state employees yesterday, but the proposal faces an uphill battle in the House.

The structure of the reduced plan would give a 5 percent increase to workers - including UA employees - who make up to $55,000 a year and a 3.5 percent increase to those making $55,000 to $82,000 a year. Workers making more than $82,000 a year would not receive an increase.

A $1,500 minimum pay raise remains in effect, which benefits those who make less than $30,000 a year.

The proposed raises will take effect April 1.

Greg Fahey, UA vice president for government relations, said he would continue to fight against the cap for people making more than $82,000 a year to entitle all employees to the raise.

"The signal will be that we just don't care about these people," Fahey said.

Arizona Board of Regents spokesman Matt Ortega said the plan might work for the rest of the state employees, but it is the three state universities' employees that will still be hurting.

Ortega said restricting workers in the higher pay brackets from the pay raise would further influence the brain drain effect - the loss of faculty to higher paying institutions.

Ortega said the battle to keep the raises is far from over.

Under the original plan, all state employees were to receive a 5 percent raise or $1500 - whichever was greater. The plan was criticized by Gov. Jane Dee Hull last month.

Hull said the budget simply couldn't afford it.

"Look at it in terms of a pay increase or a job," her statement to the Legislature read. "In this economy, I believe a job is preferable to a pink slip."

The salary package would cost the state $124 million, and Hull said 2,600 state jobs could be saved if the increases are cut.

The Republican-controlled House has already concocted a plan to eliminate raises entirely.

Jeff Imig, a supporter of university employee unionization, said union organizers fully support the Senate's decision, but said leaders in the House may think otherwise.

"The real problem is the (House) Republicans who don't want to give us anything," Imig said.

Ortega agreed with Imig, saying "there are many folks in the House that think we don't have enough money to pay for any pay package."

Jenny Rimsza, co-director of Arizona Students' Association - a student lobbyist group - said the reduced raises are a respectable compromise.

"At least this will give us an opportunity to keep the lower employees until we can figure out the 2003 budget," Rimsza said. "It sounds like a pretty decent structure."