Despite objections from legislative leaders and state Treasurer John Perdue, plans are moving forward to convert a second wave of state employees from semi-monthly to biweekly pay on Dec. 11.
Perdue last month asked for a delay in implementing the second phase of biweekly pay until the financial implications of the conversion could be resolved, after issues arose when the first wave of about 9,000 employees were switched to biweekly pay in June.
A legislative audit last month determined that the shift from a 365-day pay year to 364 days to accommodate 26 14-day pay periods ultimately will cost the state about $5 million a year in additional pay to salaried employees.
"The governor's office has had several discussions with [legislative] leadership, and the auditor and treasurer, but no changes have been agreed upon," said Chris Stadelman, spokesman for Gov. Earl Ray Tomblin, also noting that plans to shift to biweekly pay periods have been in the works for years as part of the switch to the state's wvOasis super-computer system.
"We have to consider what changing at this point would mean in terms of reprogramming costs or anything else," Stadelman said.
"Everything's moving forward, full steam ahead," said Justin Southern, spokesman for Auditor Glen Gainer.
During last month's legislative Post-Audits Committee meeting, Gainer did not dispute that the 364-day pay year will result in salaried employees receiving an additional 27th paycheck once every 11 years, which the legislative auditor's office concluded will increase overall salaries by 1.2 percent, requiring an additional $55 million of funding for the "leap year" paychecks.
However, Gainer argued that the savings from having a standardized payroll system that eliminates timekeeping errors and potential miscalculation of overtime and leave time will save the state at least $4.5 million a year and probably closer to $10 million a year.
"It's something different, but at the end of the day, it is a benefit to state employees," Southern said. "Employees want to see that they're getting paid for every day that they work."
Legislative Manager Aaron Allred, who will update legislators on the issue during legislative interim meetings Sunday, said the issue is whether the state's payroll program can be modified to account for the "decimal point" that is lost with the 364-day pay year.
"If you're going to do the conversion, you've got to do it correctly, according to the law," he said.
"We're cutting $100 million out of the budget this year, at the same time it's giving approximately $5 million [a year] of additional salary to employees," Allred said, adding, "If the governor says we need to be pinching pennies, that's what I'm saying, we need to be pinching pennies."
Tomblin last week ordered state agencies to cut spending by 4 percent after a drop in severance tax collections has the state facing a budget deficit for the 2015-16 budget year.
Meanwhile, a grievance filed by 24 Division of Highways employees who contend they will lose about six days' pay this year because of the switchover is proceeding.
Gainer and Allred have both said the perceived loss of pay in the switchover year is a timing issue, and that employees will be made whole in the "leap year" or when they leave state employment, whichever comes first.
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