Even after borrowing from the surplus, that pension would remain fully funded. The proposal was sent to the House on Friday, March 30. As soon as a House proposal is available negotiations for the final budget for the 2001-03 biennium will begin in earnest. The legislative session is scheduled to end April 22. If no budget is completed by then, a special session can be called.
Much work remains to be done to resolve some issues in the remaining weeks of the session.
A significant improvement in the Senate proposal was a provision to give all state employees the same salary increase mandated for K-12 teachers and employees by Initiative 732. The proposed increases are 3.7 percent for July 2001 and 3.1 percent for July 2002. The Governor had proposed increases of 2.2 and 2.5 percent. We will continue to explain to the Legislature in the coming weeks the critical needs of the University in this regard. Senators left new enrollments virtually unchanged from the Governor's proposal.