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If  Bill #507 is approved, Senators and other unclassified employees would lose the privilege and only employees who retire would be eligible to cash out their leave. An estimated $1.6 million dollars could be saved annually by removing the cash out entitlement, according to a release from Adelup.

That release, quotes the Governor as saying “This is something they’ve been expecting to get at the end of this year, so I understand why they’re so critical about this.”

If  his spending cuts bill does not pass, then "its main critics in the legislative leadership will each cash out up to nearly $10,000 from taxpayers that would have otherwise gone to pay tax refunds," states the release. 

"I don’t consider using taxpayer funds for a personal cash-out of leave for elected officials a critical priority at all,” says the Governor.

The Governor concludes by saying: “We need to cut spending to get us out of the mess that the past three budgets got us into. I ask the legislative leadership to make the sacrifice many in both the government and the private sector are facing.”

READ the Governor's release in FULL below:

Calvo Asks Senatorial Leadership to Sacrifice as Well; Senators set to cash out leave in December if Calvo bill doesn’t pass

FOR IMMEDIATE RELEASE
September 18, 2012

Governor Calvo understands why the legislative leadership may be apprehensive about removing the benefits they receive through the cash out of annual leave.

“This is something they’ve been expecting to get at the end of this year, so I understand why they’re so critical about this,” Governor Calvo said.

On December 31, 2012 – just three months away – senators and legislative staffers will be able to cash out their accrued annual leave, up to 320 hours per person. If the Governor’s spending cuts bill passes into law, senators will no longer be able to do this. Only employees who retire will be eligible for the annual leave cash out under the Governor’s plan.

If the Governor’s bill does not pass, then its main critics in the legislative leadership will each cash out up to nearly $10,000 from taxpayers that would have otherwise gone to pay tax refunds. If senators pass the Governor’s bill, the estimated total annual savings from the removal of the cash out entitlement from senators and other unclassified employees is about $1.6 million.

But this bill doesn’t only affect the legislature. It also will affect the Governor, Lieutenant Governor, senior staff, Cabinet, and other unclassified employees in the Executive Branch. Under the Governor’s bill, even he and his administration officials will not be able to cash out their accrued annual leave at the end of the term.

“I know this is a sacrifice, but we have to lead by example,” Governor Calvo said. “That’s why we took a pay cut ourselves last year and it’s why we continue earning less pay. I wish the legislative leadership will soon realize that in order to have enough money for tax refunds and critical services, we need to cut spending elsewhere. I don’t consider using taxpayer funds for a personal cash-out of leave for elected officials a critical priority at all.”

The Governor is concerned the legislative leadership is attacking the leave provisions of his bill by providing misinformation to nurses and teachers to cover up agitation over the annual leave change.

“We need to cut spending to get us out of the mess that the past three budgets got us into,” Governor Calvo said. “I ask the legislative leadership to make the sacrifice many in both the government and the private sector are facing.”