Vice Speaker Cruz Calls on DOA Director Manglona to Explain Hay Pay Plan Recommendations

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Guam – Vice Speaker B.J. Cruz has sent a letter to DOA Director Benita Manglona [read it below] asking her to attend “an informational briefing” this Friday to explain the recommendations in the Hay pay plan submitted by the Governor to the Legislature last Wednesday.

The plan has stirred some controversy because of the inclusion of  large pay raises for non-classified, elected GovGuam officials which have been mixed in with the recommended raises for the classified employees who have not received pay increases in more than 20 years.

Senator Cruz has requested that Manglona provide a briefing to lawmakers on:

1.   all differences between the 2010 and 2014 Hay Plans; and
2. The reasoning, method, and purpose behind each change; and
3. Answers to any technical questions asked by a member of the committee

The briefing has been scheduled for 10:30am Friday, January 24, at the Legislature’s public hearing room. 

Salary Increases for Non-Classified Elected Officials in revised Hay Pay Plan:

* Senators: from $65,000 to $85,000                  –  31% increase

* Governor: from $90,000 to $130,000                –  44% increase

* Lt. Governor: from $85,000 to $110,000           – 29% increase

* Mayors: from $46,062 to $75,000                   – 63% increase

* Vice Mayors:  from $42,264 to $68,000           – 61% increase

READ the release from Senator Cruz below:

Cruz Calls on DOA to Explain Changes to Hay Plan

(January 21, 2014 – Hagåtña) Working against the clock to review Adelup’s 2014 Hay Plan before it lapses into law in 23 days, Vice Speaker Benjamin J.F. Cruz, chairman of the Committee of General Government Operations and Cultural Affairs, has called on Department of Administration (DOA) director Benita Manglona to provide a full briefing on the reasoning, method and purpose behind the proposed changes to the Hay Plan at a public informational hearing this Friday.

“Governor Calvo made significant changes to the Hay Plan which will cost our taxpayers more money; I don’t believe we can just let the clock run out on his decision,” said Cruz, who requested Manglona’s presence at the hearing in writing this afternoon.  “This informational briefing will provide Senators with a clear understanding of the changes he made, the reasons behind those changes, and the actions we must take in the days ahead.”

According to a press release from the Governor’s Office, among the changes to the Hay Plan proposed by the executive branch was the inclusion of senators.

“If working families in the private sector haven’t gotten a pay raise in years, no Senator should close his eyes, turn his head, and take more of the people’s money,” said Cruz, in response to the flack the Legislature has received over the last week regarding pay raises for sitting senators.  “I will only support a Hay Plan that is fair, fiscally responsible, and honest with our people about the financial condition of this government.”

Pursuant to the Government of Guam Competitive Wage Act of 2014, DOA developed recommendations for salary increases using a 2010 study conducted by Hay Group Inc.  The Hay Plan was transmitted to the Governor and the Legislature on January 15, 2014, and will lapse into law on February 14, 2014, absent legislative action.

Should the Legislature act on the Hay Plan, senators must pass a bill within 10 days of the deadline to provide the governor time to respond before the proposal lapses into law.

The Committee of General Government Operations and Cultural Affairs Committee will conduct the public informational hearing on Friday, January 24, 2014, at 10:30 a.m. in the Guam Legislature’s public hearing room.

READ Senator Cruz’s letter to DOA Director Manglona below:

January 21, 2014

Sent via Hand Delivery

Benita Manglona, Director
Department of Administration
590 S. Marine Drive, Suite 224
Tamuning, GU 96931

Re:    Informational Briefing on Governor’s 2014 Hay Plan   

Dear Director Manglona:

I appreciate the Department of Administration’s ongoing work related to the 2014 version of the Government of Guam Hay Study.  As you are aware, the proposal will lapse into effect on February 14, 2014, without amendment absent any legislative action within thirty (30) days of the plan’s submittal.

As the administration’s own press release, dated January 15, 2014, indicates, Governor Calvo’s Hay Plan is a departure from its 2010 predecessor in several ways:

• The inclusion of unclassified employees.
• The additional $20 million in annual payroll costs.
• The addition of two grades, “W” and “X”.
• The phased-in increase for General Pay Plan (GPP) employees, who will receive approximately 50 percent when the plan takes effect, and receive full wage increase by August 2014.  Employees under other pay plans (e.g. teachers, nurses, attorneys) will receive full wage increase upon implementation of the plan.
• The pay cap lift for senior employees, allowing for incremental pay increases based on performance.

Given the substantive nature of these changes, the possibility that there may be other changes that require the Legislature’s attention, and the rapidly approaching deadline; I respectfully request your attendance at an informational briefing on Friday, January 24, 2014, at 10:30 a.m. in the Legislature’s public hearing room, to provide the following:

1.  A full briefing on all differences between the 2010 and 2014 Hay Plans; and
2. The reasoning, method, and purpose behind each change; and
3. Answers to any technical questions asked by a member of the committee

Moreover, please ensure the attendance of any DOA staff member who might assist you in providing the requested information.  As always, I thank you for your time and attention to this important matter.

Sincerely,
Benjamin J.F. Cruz