Republicans in the Legislature are taking a closer look at retirement benefits at state colleges and universities and expressing impatience as state workers pass a six-month mark without new union contracts.
"I'm very disappointed," said Sen. Mike Parry, R-Waseca, as Thursday's hearing of the Legislative Coordinating Commission's Subcommittee on Employee Relations opened with an update on the progress -- or lack thereof -- of labor talks. "Somebody is dragging their feet."
Parry also questioned Minnesota State Colleges and University officials about the practice of allowing longtime employees to cash in unused vacation days upon retirement, allowing some to accumulate five-figure, or even a few six-figure, bonuses. That sort of "unchecked spending is no longer acceptable," Parry said.
Laura King, MnSCU's vice chancellor for administration and finance, said that even with extra cash at retirement, most top MnSCU administrators earn substantially less than their colleagues at comparable schools nationwide. She said the system was open to discussing alternative ways to attract top talent.
While Republicans floated the idea of banning the practice, Rep. Keith Downey, R-Edina, said part of the reason universities turn to incentives like banking sick days is because the Legislature cut off other forms of compensation.
"If we've tied your hands on how you structure a competitive compensation package, maybe that is something we need to look at," Downey said.
Meanwhile, thousands of other state employees are still waiting for the contracts that will set their salaries and benefits for the next two years.
Contracts for more than 34,000 workers were delayed by the budget stalemate last summer and the government shutdown that followed.
