July 2019 • Vol. 37, Issue 5
THE
REPORTER
State Employees Association of North Carolina
COOPER VETOES BUDGET WITH RAISES, RETIREE BONUS The House and Senate announced a state budget compromise on June 25 that prioritized state employee pay increases and included a bonus for retirees in each of the next two years. Three days later, Gov. Roy Cooper vetoed it. The compromise plan included raises for state employees that are higher than the average teacher raise for the first time in decades. Most state employees would receive a 5% increase over two years, as well as an additional five bonus days of leave. Neither the House nor the Senate included anything for retirees in their initial proposals. Action by SEANC members was credited with bringing the issue of retiree pay back to the table, eventually resulting in a 1% bonus over the next two years in the compromise. SEANC members reached out to their legislators in droves this summer to let them know that the Senate’s pay plan was better than the House’s plan. They also voiced their concerns over the lack of respect for retirees in either budget. “We are grateful that, for the first time in decades, the House and Senate prioritized state employee raises in the conference budget,” said SEANC President Jimmy Davis. “Thousands of SEANC members took grassroots action and contacted their legislators during this process. We appreciate that Speaker Moore and Senator Berger worked directly with SEANC to ensure that relief for retirees is included in
The two-year budget includes: »» The Senate’s pay proposal of a 5% raise for most state employees (2.5% per year). »» Five additional days of bonus leave. »» Teacher raises: an average of 3.9% over two years. »» Retiree raises: a 1% bonus (.5% per year). »» Non-certified school personnel: a 1% raise. »» Maintaining the Senate’s correctional officer bonus structure. Emails sent to legislators during the budget process: »» Active employees: 2,768. »» Retirees: 1,890. »» Legislators reached: All 170 (50 Senate and 120 House).
the report.” House and Senate leaders have said that they remained willing to negotiate with Gov. Roy Cooper on the final budget. SEANC will ask legislators and the Governor to reconsider the DHHS move to Granville County, a move which we strongly oppose. As of presstime, the House and Senate planned to hold votes to override that veto. Unlike years past, an override is not a forgone conclusion because Republicans do not have a supermajority.
Hospital executives holding out on joining the Clear Pricing Project Hospital executives are refusing to sign contracts that will reduce healthcare costs. State Treasurer Dale Fowell’s deadline for providers to sign contracts with the State Health Plan on the Clear Pricing Project for next year passed, on July 1. The Clear Pricing Project will save taxpayers more than $250 million and plan members more than $50 million in out-of-pocket expenses. The plan’s old network and reimbursement structure will remain in place until it expires on Jan. 1, 2020. As of June 28, stubborn hospital executives were holding out, hoping to
get their way and continue to overcharge state employees and retirees. More than 15,000 providers have signed on to the plan, including the state’s largest independent physicians clinic network, Community Care Physicians Network, and ECU Physicians. The list also includes MinuteClinic, Raleigh Orthopaedic and Tryon Medical Partners. However, the N.C. Healthcare Association (NCHA) advised hospitals not to speak to SEANC. SEANC Executive Director Robert Broome reached out to the CEOs of all 111 hospitals in June to discuss the plan.
Only seven of them responded. WBTV in Charlotte reported on June 24 that UNC Hospitals had used public funds to donate $58,633 to Partners for Innovation in Health Care, a dark money group set up by NCHA to fight the Clear Pricing Project. If they won’t listen to SEANC, surely they’ll listen to their patients! We need each of you to contact your local hospital to ask them to sign on to the State Health Plan next year. Visit ahcnc.org to find phone numbers for the hospitals in your area. After your call, please email us at info@seanc.org to let us know how your call went.
PUBLIC POLICY State Health Plan continues to push for efficiency, transparency and lower prices By State Treasurer Dale Folwell The State Health Plan and SEANC leadership have been working together to lower health care costs and bring transparency to the cost of medical services for decades. We have been opposed at every step by powerful forces who want to maintain their profits at the expense of public service workers and their families. But we will never waiver in our mission. As Governor Jim Martin once said, “Doing right is rarely wrong.” Whether it’s health care or making sure the pension plan remains solvent for your retirement, we are doing the right things to keep your health and pension plans on a solid financial footing for generations to come. The Plan is working hard to achieve lower costs for prescription drugs. For example, the Plan utilizes a Pharmacy Benefit Manager, CVS Caremark. CVS Caremark’s contract with the Plan does not allow “gag clauses,” which prohibit pharmacists from telling customers that they could save money by paying cash for prescription drugs rather than using their insurance. The Reporter, USPS 009-852 (ISSN 1069 2142), is published six times a year in the months of February, April, May, July, September and November for $2.50 per year, per member, by the State Employees Association of North Carolina, Inc., 1621 Midtown Place, Raleigh, NC 27609. Periodicals postage paid at Raleigh and additional offices. POSTMASTER, Send address changes to: THE REPORTER, 1621 Midtown Place, Raleigh, NC 27609
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THE REPORTER • July 2019
In addition, CVS Caremark does not engage in co-pay clawbacks, meaning that if a member’s copay for a drug is greater than the pharmacy’s contracted rate, CVS Caremark does not collect that difference from the pharmacy. Members always pay the lower amount of the pharmacy’s cash price and the co-pay. As you know, State Treasurer the Plan has been Dale R. Folwell, CPA trying to lower health care costs for its members and taxpayers through its Clear Pricing Project. The initiative seeks to greatly expand transparency in the cost of medical services while also setting medical care reimbursement rates that are reasonable and manageable. Additionally, the Clear Pricing Project is providing an increase in reimbursement for independent primary care physicians, mental health specialists and many rural hospitals. The main goal of these cost-saving measures is to ensure that your State Health Plan benefits are sustainable and here for you when you need them the most. The Clear Pricing Project will save Plan members over $50 million. These savings may allow for lower premiums, copays and deductibles, and lower costs for the medical services you receive. We want to use these savings to lower family premiums for all the public employees on the Plan. Right now, a starting teacher, trooper or state
employee must work one week out of the month just to provide health care coverage for their family. It often becomes a choice between health care or the mortgage payment, health care or the car payment, or health care or the power bill. We must do something to change this, not only for current public employees, but also to make sure that these essential benefits are available for future employees. You may not wake up in the morning and think about reducing health care costs and pension solvency. But the hard-working state employees at the Department of State Treasurer come to work every day with that in mind. We are committed to doing things better and more efficiently for you and other North Carolina taxpayers. Thank you for your support of the Department of State Treasurer. As “Keeper of the Public Purse,” I am honored to lead this agency and humbled at the faith you have put in me. Together, the things we are doing will make a generational difference for all North Carolinians.
RETIREE FOCUS Retirees stepped up to the challenge on state budget
Why do retirees have to beg? We dedicated our careers to the state. Why do we have to beg for a small cost-of-living adjustment (COLA) each year? Our retirement system was designed to pay for its own cost-of-living adjustments. We shouldn’t have to ask legislators to fund COLAs in the General Fund
budget. It’s one of the largest pots of money in the world. But years of poor management by former state treasurers who signed deals with Wall Street money managers for investments that included huge fees made that impossible. Any gains we’ve made on investments went into their pockets rather than yours. Thankfully, in Dale Folwell, we have a State Treasurer who is willing to tackle the tough problems headon. He’s already renegotiated many of those contracts and saved the plan around $500 million in fees since taking office. Folwell has a big hill to climb, but he’s doing a good job. So for now, we are forced to ask lawmakers to consider granting us an increase through the budget each year.
You made it happen. Though both the House and Senate ignored retirees in their original proposals, that wasn’t good enough in the end. They heard your voices loud and clear! Our lobbyists heard from several lawmakers that our outreach had
changed the conversation. They Benny Brigman, were forced to Retiree Council Chairman consider you in the final negotiations rather than forget you once again. In the end, we were able to win a 1% bonus for retirees over the next two years in the compromise budget. SEANC always strives for recurring cost-of-living adjustments. But after both chambers left you out of their first proposals, any relief at all is a victory.
We’re not finished. We aren’t done yet. Your actions can really make a difference. Remember that we have more than 19,000 retirees among SEANC’s membership. We’re counting on you to contact legislators again in the near future. Imagine the positive impact if legislators received 19,000 calls and emails each year. We would never have to beg again! Benny Brigman is the SEANC Retiree Council Chairman. Contact him at retireeaction@seanc.org. To take action in the future, visit seanc.org/engage.
REPORTER
THE
Allow me a minute to brag on some of my favorite people. No, I’m not talking about my grandkids, though I do a lot of bragging about them. I’m talking about you folks — our state retirees — who sprung into action in the last couple of months to let your legislators know what you think about them leaving you out of their budgets. The initial budget proposals from both the House and Senate did not include anything for retirees this year. Within a few hours of the Senate passing its budget in late May, SEANC was able to mobilize an unprecedented number of our retirees through our Voter Voice platform. I sent out a call to action asking each of you to reach out to your legislators to tell them this disrespect was not acceptable. And boy, did you answer my challenge! SEANC retirees sent more than 1,800 emails and made dozens of calls to their legislators. You told them about the hardships you face daily because of a lack of increases to your pension checks. You shared how you struggled to pay for the rising cost of health care and medicine. In each message, you were respectful but honest in telling your legislator you should not be left out.
State Employees Association of NC 1621 Midtown Place • Raleigh, NC 27609 919-833-6436 • 800-222-2758 • www.seanc.org
Jonathan Owens, Editor-In-Chief • Beth Dew, Managing Editor • Amanda Wise, Associate Editor
ADVERTISING POLICY SEANC accepts advertising material from companies and persons seeking to communicate with SEANC members. Acceptance of this advertising does not indicate SEANC approval or endorsement of any representation that the message, product or service is as represented by the advertiser. SEANC accepts no responsibility and shall not be liable for any use of or reliance on any such information, product or service. SEANC is a private entity and is under no obligation to carry advertisements of any nature, political or otherwise, that may be viewed as contrary to the interests of the association and its membership. ©Copyright 2019 SEANC. All rights reserved.
THE REPORTER • July 2019
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JOHNNY DAVISON
MEMBERS IN ACTION
JOHNNY DAVISON
District 4 hosted a member appreciation lunch at the Shelby Bus Garage on May 22. Pictured above are District 4 Chair Jerry Bridges, Cleveland County Schools Transportation Director and District 4 member David Pless, and State Membership Chair Tim Southard.
District 26 member Larry Hester shares his vision board with SEANC's Advanced Leadership Training participants at Caraway Center April 24-26.
JOHNNY DAVISON
SUBMITTED BY TIFFANY WOODARD
(Above) District 42 Emerging Leaders hosted a #HashtagLunchbag on May 31 at the SEANC office. (At right) District 42 Chair Shirley Bell presented a $200 check to Creech Road Elementary School Cafeteria to make current 78 students’ lunch accounts.
SUBMITTED BY CELIA WILSON
SUBMITTED BY CELIA WILSON
AMANDA WISE
SEANC President Jimmy Davis helped lead District 4’s new officer elections during the district’s annual meeting on June 13.
The two ladies pictured above joined SEANC at the May 8 membership event at J. Iverson Riddle Developmental Center in Morganton.
State Membership Chair Spillman Grice (left) signs up a new member during the District 66 Membership Drive on June 6 at NCDHHS Caswell Center.
SUBMITTED BY CYNTHIA HART
RECRUITER-NEW MEMBER CHALLENGE Members who recruit one new member between June 1 - Aug. 30 will be entered in a drawing to win an iPad!* SPONSORED BY
District 65 recruited 16 new members during the membership event at ECU Physicians Neurology on May 21. Pictured are District 65 Chair Cynthia Hart (center), Eastern Region Representative Rita Woods (right) with a new member.
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THE REPORTER • July 2019
& SEANC MEMBER RELATIONS
For more information, contact: Director of Member Services Lynn Cote at lcote@seanc.org; 919-833-6436; 800-222-2758.
* iPad: 128GB 6th generation Wi-Fi with case. The winner will be announced at the 2019 SEANC Annual Convention.
MEMBER SPOTLIGHT Leading by example: Clifford D. Johnson, 36-year SEANC member The sun is rising on a brisk, breathtakingly beautiful morning in western North Carolina. SEANC Member Relations Representatives report for work on the last day of a week-long county membership blitz. So far, the successful event has led to many new SEANC members, but has required many long hours. Everyone is exhausted. Except longtime District 2 member Clifford “the Hat” Johnson, who appears with a bounce in his step and a bright smile on his face excited about the SEANC event. SEANC staff refers to Cliff as “the Energizer Bunny” because he “just keeps on going and going.” “Cliff has a true passion for SEANC recruitment and retention,” said Director of Member Relations Lynn Cote. “He is dedicated, hardworking and will do anything asked to support SEANC. He Johnson as a young shows up for events correctional officer in the early 1980s. first thing in the morning and doesn’t stop until the end.” Johnson was born and raised in North Carolina. Throughout his career, he worked in the public safety and corrections fields beginning with a fouryear stint as a correctional specialist in the U.S. Marine Corps. In the early 1980s, he began his 30-year career with the N.C. Department of Corrections. He discovered SEANC during the new employee Correctional Sergeant orientation. “It in charge of sounded like a good Johnson second shift in the early 1990s. employee-oriented
association, so I joined,” he said later. In late 1983, Cliff transferred to Craggy Correctional in Asheville. It was there that he Johnson supporting attended his first EMPAC-endorsed candidates in 2016. SEANC event. “One evening my sergeant (who was also the district chair) called me to his office and told me that something came up and I was to attend a state SEANC meeting in Raleigh for him. My sergeant instructed me to take notes for him and to keep my mouth shut — but I haven’t shut up yet!” He became even more involved in the association in 2003 at the encouragement of SEANC Past President Wayne Fish. “Soon, I found myself on several committees and chairing the district scholarship committee,” Johnson said. Since then, Johnson has become a diligent member of SEANC, serving on both the district and state levels in various capacities. He has been District 2 Chai, Western Regional Representative and State Membership Chair. In addition, he tirelessly participates in Lobby Days and regularly meets with legislators. “Most SEANC members just pay their membership dues and think that is all there is to it,” he said. “Well, I suggest that is just a start. The more members we have actively involved in SEANC and EMPAC, the easier it is to strive toward our goals each year. I always encourage current and new members to attend district meetings and get involved.” Since retiring from the state, Johnson has “stepped up his SEANC game,” he said. Our Energizer Bunny takes pride in being a SEANC leader and mentor and endeavors to keep up with current bylaws,
policies and operations. Member Relations Representative Johnny Davison, who has worked closely with Johnson for several years, said, “Cliff’s enthusiasm, positivity and openmindedness in every situation always inspires me and the state employees we come in contact with while out in the field. He selflessly gives his time and energy not only to his district but to the entire western region and SEANC as a whole. His dedication is certainly something to be admired.”
“ While all parts of SEANC are required to make the organization work and all are critically important, without membership, both active employees and retirees, SEANC does not exist! ” Cliff Johnson
Johnson holds the Advanced Corrections Certificate from the N.C. Department of Justice and was awarded the Order of the Long Leaf Pine by Gov. Beverly Purdue. He and his wife, Patricia, also a state retiree and longtime SEANC member, enjoy spending time outdoors, traveling and checking out new restaurants. They have one son, Earl, who works as a corporal at the Haywood County Sheriff’s Detention Center.
District 2 recently sponsored a food truck for the employees at several agencies in the southern part of Asheville. Johnson (right) signs up a new member. District 2 Chair Bill Danielson (back) looks on.
THE REPORTER • July 2019
5
Doug Sutton
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THE REPORTER • July 2019
STATE PERSONNEL CASES: PROTECTING STATE EMPLOYEE RIGHTS Representing State Employees in State employees are good people. But Grievances, Court of Appeals, and even good people make mistakes NC Office of Administrative Hearings mistakes that violate your rights as a career employee, discriminate against you, or cost you a promotion or job. ■
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SEANC Scholarship Foundation Bowl-a-Thon & Silent Auction Saturday, July 27 1-3 p.m. Buffaloe Lanes North 5900 Oak Forest Drive ● Raleigh, NC Proceeds from the event will be used to award thousands of dollars in educational scholarships to SEANC members, their spouses and their dependent children. Tickets: $20 per person or $100 per team of six To register, sponsor a lane or for more information visit seanc.org/seanc-bowl-a-thon.
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THE REPORTER • July 2019
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Periodical Postage PAID Raleigh, NC 1621 Midtown Place Raleigh, NC 27609
2019 UNC System Staff Assembly
CHANCELLOR,S CUP GOLF TOURNAMENT
SEANC’s team consisted of Neal Hair ston, Teresa Johnson, SEANC General Treasurer Chevella Thomas and Galino King.
SEANC and its districts representing employees at the 17 campuses of the UNC System proudly sponsored the 2019 UNC System Staff Assembly Chancellor's Cup Golf Tournament at Tobacco Road Golf Course in Sanford on May 15! SEANC was a presenting sponsor of the event and also sponsored Hole 11 as well as a team.