Salary increases not likelihood for Louisiana employees

Louisiana state employees could be facing a salary cut. If the plan is approved, it would be the second year in a row of salary freezes. Employee advocates are not excited about this likelihood. Although it does not consist of layoffs, it is a powerful salary cut for employees. Once more this is another measure that is going to keep people looking to payday advances for survival. Article resource – Louisiana state employees likely forgoing pay raises by MoneyBlogNewz.

Pay increases in Louisiana State

There is a huge spending budget deficit in Louisiana right now. It is currently at $1.6 million. Salary raises up to 4% are typically given to employees every year with annual reviews. Louisiana was able to save $55 million past year alone. This was simply done by freezing Louisiana state pay raises. In the 2011-2012 year, the pay halts may continue to help even more, which is a suggestion from Gov. Bobby Jindal. This would freeze only annual pay increases, not raises associated with promotions.

Spending budget problems in Louisiana

When it comes to fixing the Louisiana budget issue, salary freezes seem like the best option. Many are not happy about the idea though. The state is “attempting to balance the budget on the back of workers," in accordance with state commission members. Employee advocates are trying to get a cost-of-living adjustment at the very least for employees while saying the salary freeze is an emergency loan the state is going to have to pay more for later. Many states are using pay freezes, furlough days, and even layoffs as a way to balance budgets. In order to balance the budget, cutting pay raises isn't a terrible thing for Louisiana to do.

Where Louisiana stands

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

Citations

Bloomberg

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