Today, the Senate concurred on House amendments to Senate Bill 6503, the compensation reduction bill, with a vote of 26-14.

In other words, the Senate passed the House’s revised version of SB 6503 and now the bill heads to the Governor for her signature.

Senate Bill 6503 focuses on state savings through the reduction of compensation-related changes for state employees.  The bill is referred to by many as the “furlough bill”.

The final bill headed to the Governor directs that savings will be generated at state agencies and institutions of higher education through either 10 temporary agency closure days or alternate-approved compensation reduction plans. In addition, the legislation directs that in addition to the closure or alternate compensation reduction plan savings, Washington Management Services and exempt employee compensation will be reduced by $10 million General Fund-State. Finally, the bill provides a list of agencies, or portions of agencies, exempt from the closures.
Specifically Senate Bill 6503:

• Directs state agencies to achieve a reduction in employee compensation costs through mandatory and voluntary furloughs, leave without pay, reduced work hours, voluntary retirements and separations, layoffs and other methods. The amount of the savings will be specified in the omnibus appropriations act.
• At least $10 million in savings will be from management positions exempt from civil service.
• Agencies that fail to submit an approved compensation reduction plan will be subject to ten specified agency closure dates beginning in July 2010.
• The alternate reduction plans for institutions of higher education may include reductions to operations, as well as to compensation.
• Agencies are encouraged to preserve family wage jobs.
• Exceptions to the agency closure dates include: state corrections and social service institutions; child protective services; law enforcement; military operations; state hospitals; emergency management; state parks, highways, and ferries; revenue collection by the Department of Revenue; higher education classroom instruction and student employees; state liquor stores; state lottery; unemployment insurance and reemployment services; workers compensation and workplace safety programs; agricultural commodity commissions and food inspection programs; employees necessary to protect state assets and public safety; functions of the Attorney General’s Office directly related to civil, criminal, or administrative actions; the operations of the Office of the Insurance Commissioner that are funded by industry regulatory fees; state legislative agencies, the Governor, the Office of Financial Management and Lieutenant Governor during legislative sessions; and the Labor Relations Office of OFM through November 1, 2010.
• State agency closures will result in the temporary layoff (furlough) and reduction of compensation of affected state employees. These temporary layoffs and reduction in compensation do not affect employee seniority, vacation and sick leave accrual, or retirement benefits.
• Agencies that do not adopt an approved compensation reduction plan will be subject to ten closure dates specified in the bill. Employees earning less than $30,000 per year are allowed to use annual leave or shared leave in lieu of temporary layoffs during agency closures.