* 12:36 pm - The Department of Central Management Services has just sent a memo to agency directors decreeing that pay raises mandated by union contracts in 14 state “departments, boards, authorities and commissions” cannot and should not be paid.

The CMS document can be read by clicking here.

* CMS’s logic is that the General Assembly has sole authority to make appropriations under the Illinois Constitution. As you already know, the GA did not adequately fund personnel line items in the budget which was sent to the governor’s desk.

The state’s Labor Relations Act also includes a provision about how union contracts are “subject to the appropriations power of the employer.”

The governor, therefore, “does not have the appropriations authority to implement cost of living adjustments, longevity enhancements, or step increases covered by a collective bargaining agreement,” according to the memo.

* The agencies impacted are…

Criminal Justice Information Authority
Corrections
Deaf and Hard of Hearing Commission
Historic Preservation
Human Rights Commission
Dept. of Human Rights
Human Services
Labor
Natural Resources
Public Health
Revenue

…Adding… The missing three…

Guardianship and Advocacy
Juvenile Justice
Prisoner Review Board

The CMS memo claims there are 14 entities, but only 11 are listed. Checking on that.

* The memo, signed by CMS’s Acting Director Malcom Weems, continues to say, “due to the absence of sufficient appropriations by the General Assembly, the above listed agencies cannot implement the FY 12 increases.”

Agencies not listed had sufficient appropriations to implement the increases.

* The CMS memo goes on to say that those workers who’ve already committed to retire by the end of December will continue to receive the raises.

* I’m awaiting a call-back from AFSCME at the moment. That oughtta be good.

* According to a top administration official, CMS believed it had no choice because of the budget sent to it by the General Assembly. “There simply isn’t enough appropriation,” the official said, adding “We pleaded with the House to work with us and the Senate to reallocate to cover the huge shortfalls in personal services lines at the affected agencies.”

Asked whether eliminating positions would’ve been an option, I was told that the action would’ve required going to court and getting the union involved.

* The memo also has this paragraph, and I’ve asked for clarification about what it means…

Additionally, employees covered by HR-001, RC-19, RC-20, NR-916, RC-45 and Prevailing Rate collective bargaining agreements are not impacted by this memo.”

* If this is a device to get AFSCME’s attention, it’ll probably work.

* This reportedly totals $77 million in savings.

* While I wait for more info and some call-backs, here are a few other news stories that have popped up in the past few minutes…

* Quinn names Petersburg woman acting IDOT director

* Treasurer suspends employee one week for Bright Start mistake

* Tammy Duckworth making calls about suburban congressional run

* AP…

People with direct knowledge of the governor’s plan said Friday that skipping the 2 percent raises would affect nearly 30,000 workers and save $77 million. They spoke to The Associated Press on condition of anonymity because they were not authorized to divulge the information.

The state promised in union contracts to provide the raises. But Quinn argues the promise is void because lawmakers passed a budget that lacks money for the raises.

The actual number is 29,905 workers out of about 41,000 union employees. Scheduled union wage increases beginning today…

7/1/11 — 2.0%
1/1/12 — 1.25%
2/1/12 — 2.0%

* From the governor’s office…

Today we notified the directors of 14 agencies and the impacted unions that approximately 30,000 state employees will not be receiving scheduled pay increases in the new fiscal year. These pay increases were part of the labor agreements that were agreed to by the previous administration.

The fiscal year 2012 budget does not provide the money for these pay raises. If the state paid these increases, the impacted agencies would not be able to make payroll for the entire fiscal year, preventing them from continuing operations and providing core services to the people of Illinois.

Implementing a budget is a year-round process. Today’s action marks the first of many steps required to manage the fiscal year 2012 budget.