(St. Paul, MN) – Today the Senate Finance Committee took up Senate File 2770, which ratifies state employee’s contracts but puts a freeze on the second year 2.5% Cost of Living Adjustment (COLA) increases. The Senate is urging the administration and unions to negotiate a new agreement to reflect the change in second year COLA increases. Senator Mark Koran (R-North Branch), the chief author of the bill, made the following statement in committee –

“When state contracts were negotiated last year, we were looking at the best of economic times. Now, we are looking at the worst of times: a job market that rivals the Great Depression. I was a long-time state employee represented by AFSCME and MAPE. I’ve experienced contracts brought to a zero percent increase in the eighties, so bringing this bill forward gives me no joy. Still, its stipulations will preserve the livelihoods of Minnesota’s state employees for years to come. These employees work hard and deserve raises, but thousands will be protected from lay-offs if we remain practical and levelheaded regarding the budget. Many Minnesotans are hurting financially right now, and it is time to make tough decisions.”