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Monday, November 24, 2008

Budget & Compensation Revisited

A 4.5% "grid increase" has been requested for the FY2010 budget and it will probably be the last time a "grid increase" is used to include our step increases within the budget request. It looks like the System will not be going back to the old way of doing step increases. Other options are being investigated. The Staff Compensation Task Force (SCTF) is looking into other ideas, including merit-based raises, using an end-of-year bonus concept, and others. They are always looking for ideas, so feel free to pass them on if you have one.

There is also a high probability that health care premiums will be going up as early as July 1, 2009. There is still discussion and calculations to be made to determine exactly how much the increase will be; we will let you know as soon as we hear anything.

Another item SCTF is working on is the fact that the "grid increase" request for FY2010 is 4.5%. Being that the request is based on cost-of-living in Anchorage, which is currently already at 4.6%, the chance that the new rates almost definitely won't cover the cost-of-living increase in addition to the health care premium increase is incredibly high. The SCTF is meeting next week and hope to get some answers and ideas.

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