COMPTROLLER LEMBO’S FIRST ANNUAL SEBAC SAVINGS ANALYSIS REVEALS NET SAVINGS OF $1.7 BILLION FOR FISCAL YEARS 18 AND 19
Contact: Tara Downes
Comptroller Kevin Lembo today issued the state’s first annual SEBAC Savings Analysis Report, detailing how the state has achieved a net savings of $1.7 billion as a result of programs collaboratively established through the 2017 State Employees Bargaining Agent Coalition (SEBAC) agreement.
The 2017 SEBAC agreement included wage concessions, changes to employee and retiree health care benefits and adjustments to pension calculations. These adjustments, combined, were projected to save the state $700.9 million in Fiscal Year 2018 and $868.6 million in Fiscal Year 2019.
Actual net savings exceeded these targets by approximately $128 million so far, according to Lembo’s analysis. The analysis is the first issued pursuant to Sec. 326 of Public Act 17-1, which requires the Office of the State Comptroller to assess these savings annually. This first report covers savings achieved collectively for Fiscal Years 2018 and 2019.
“Good ideas are easy to come by – but implementing complex policies, finding common ground and working collaboratively, sometimes against headwinds of doubt and resistance, is hard work,” Lembo said. “This analysis reveals that doing the hard work, in an ongoing collaborative process with state labor and management representatives, is paying off – and will continue to do so in years to come.”
The report lays out each component from the 2017 SEBAC agreement with a breakdown of targeted savings, achieved savings and basic program explanations. This report is the first of what will be an annually updated analysis, as required by law.
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