Comments from STRS Board members Dennis Leone and Jeff Chapman during April Board meeting re: proposed raises for STRS staff

From John Curry, May 5, 2007
Subject: Subject: Dr. Leone and Jeff Chapman speak re: STRS proposed 2007/2008 budget...and other items - A GOOD READ!!!!!

Some comments (verbatim) that Dennis Leone and Jeff Chapman made at the April STRS Board Meeting as related to the proposed 2007/2008 STRS budget when it was presented to the STRS Board. These hard hitting comments should be thought about by every STRS retiree. Things will definitely not be smooth down the road. I transcribed this from the CD recording of the meeting as furnished to me by STRS. John

Dennis Leone: "Yeah, I'm on page 9 also...I want to ask a question I feel I must -- and I know ORTA and OEA don't like it when I ask these kinds of questions but I have to do it -- I'm looking at the salary and wages line at the top. 12.45% increase...I realize that includes base raises, merit raises, bonus checks, service awards; it includes all those things. You know, I think there's high risk involved for this pension system at a time when we have health care legislation moving forward in the spring. For certain ORSC members to see a 12.45% salary/wages increase here in this organization....retirees got a 3% COLA....that's my raise this year. Our own budget calls for a four-and-one-half percent payroll growth..which we're not receiving from active members..... and yet we have a 12.45% increase in the salary and wages for the 637 people that work here. I feel that this is going to be harmful and I think that the Board needs to be aware of that. I think that when the word gets out on this....if I were a Medicare Part B retiree and I saw how quickly the Board approved increasing my payments....with no consideration to other options...12.45% would make me flinch. I just say that we need to look at this real hard....be prepared for some unintended negative consequences that could affect healthcare legislation as well as other things....that's my speech."

Jeff Chapman: "Yeah, my very general comment kind of piggybacks on what Dr. Leone said. Just leaving out just salaries and wages I have no doubt the department heads came with this budget and through the process they did what every good manager or department head does and that's fight for the available dollars for their department so that workers have the resources they need to do the job well. But, I'm also concerned about just the eight and one half percent being out there as Mr. Brooks mentioned briefly....at a time this is going to hit right about the time hopefully that our legislation is being introduced and you know darned well the newspapers are going to pick that up if not point it out but school boards association ...and they're going to run with it. You know....how is it you need more money when you have the highest budget you've had in what...the last five years..or ever? You know, with an increase over last years of eight and one half percent...and it worries me."