Saturday, January 3, 2009

OASAS budget cuts of $77 million - 27.9 million for cost of living increases.

In order to manage the $77 million budget reduction of OASAS, OASAS has decided to reduce the planned 2008 - 2009 cost of living adjustment (COLA) from 3.2 % to 2.2% saving 4.9 million and excluding the COLA for 2009-2010 which as planned to be 5.6 % or 23 million. So altogether, OASAS is saving 27.9 million. It is expected that the COLA will be resumed on April 1, 2010 and continue for 3 years until March 31, 2013.

While this may be necessary to save jobs, it is hard for staff who are already underpaid and for whom ever increasing health insurance premiums cancels out any salary increases for the most part. How this will affect the workforce over the next few years will remain to be seen.

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