Employees of Louisiana might be missing out on salary increases

Louisiana state employees could possibly be dealing with a pay cut. This could be the second year of salary halts in the state. Many employee supporters are calling this “balancing the budget on the backs of employees”. Once more this is another measure that is going to keep people looking to payday advances for survival. Source of article – Louisiana state employees likely forgoing pay raises by MoneyBlogNewz.

Higher wages in Louisiana

There’s a huge budget deficit in Louisiana right now. It is currently at $1.6 million. Pay raises up to 4% are typically given to employees annually with annual reviews. Last year, the state froze Louisiana state employee salary increases and saved about $55 million. In the 2011-2012 year, the pay freezes may continue to help even more, which is a suggestion from Gov. Bobby Jindal. This would freeze only yearly pay raises, not increases associated with promotions.

Spending budget problems in Louisiana

When it comes to fixing the Louisiana spending budget problem, pay 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 supporters try 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 salary more for later. Pay freezes, furlough days and layoffs are all being done in states to get the spending budget balanced again. In Louisiana, cutting out pay raises is a relatively low-impact measure to balance the budget.

Where Louisiana stands

Though the state is attempting to cut almost $2 billion out of the spending budget, Louisiana is in a better position than most states, economically. The average unemployment rate in Louisiana is 7.7 percent, while the average national rate is about 9 percent. Louisiana state colleges also have one of the lowest in-state tuition rates in the nation. Right now, proposals are being drawn up by state commissions. March 11 could be when the final decisions could be made.

Information from

Bloomberg

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