January 29, 2009

SENATE PASSES BELT-TIGHTENING PLAN

The Senate on Wednesday passed a short-term cost-cutting bill that aims to trim administrative costs while preserving programs and jobs. The Federation testified in support of SB 5460.

The measure has exceptions for public safety, law enforcement and revenue collection. But SB 5460 would continue the freeze on most hiring, personal services contracts, equipment purchases over $1,000, travel and out-of-state training.

There are a couple of major exemptions worth noting. The bill exempts the Special Commitment Center on McNeil Island and the unemployment insurance program from the hiring freeze. The travel, training and personal services contracts restrictions do not apply to the unemployment insurance program. The travel and personal services contract restrictions do not apply if they're funded by private or federal grants. In higher education, the restrictions do not apply if the costs are not paid from state funds or tuition.

SB 5460 now goes to the House.

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