June 15, 2009
Buffalo's slushy freeze
Just how hard was the 38-month pay freeze for Buffalo city employees imposed by the state appointed control board? That question likely will be decided by the state's highest court.
If Friday's appellate court decision is upheld, it will cost the financially hard pressed city $130 million over four years--$40 million for the city and $90 million for the school district, the Buffalo News reports. After Buffalo's 38-month wage freeze was lifted in July 2007, the city and control board argued employees were entitled to move up only one step on the salary ladder, even if the wage freeze had caused them to miss several negotiated pay increases based on years of service. The control board will appeal the decision, said its attorney. The city is reviewing its options.
In its decision the Appellate Division of the state Supreme Court in Rochester ruled: "The city's obligation to make payment of the type of wage increases in question was suspended until the wage freeze was terminated....
"The city cannot ignore the fact that the employees have continued to accrue service credit and have climbed the ladder of salary and career increments set forth in the collective bargaining agreements." An attorney for the Buffalo Police Benevolent Association said the decision would mean a 10.2 percent wage increase for police.
The decision, if upheld, would punch a big hole in the school district budget, which anticipates budget gaps in the next four years, according to Gary Crosby, chief financial and operations officer for the Buffalo schools.
In a presentation last month, deficits were projected to reach $33.6 million in 2010-11, $46.4 million in 2011-12 and $56.5 million in 2012-13.
"The projected deficits, if realized, would mean substantial layoffs," Crosby said. "It's unfortunate the economic impact of this court ruling will no doubt impact both the budget and classroom in the years to come."
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