New restrictions or banning could be forthcoming on severance pay for executive branch employees who leave state service.
Under current law, severance pay may not exceed an amount equal to six months’ salary. The bill would set severance pay limits to the lesser of the equivalent of six months’ pay or an amount equal to 35 percent of the employee’s accumulated but unused sick time.
The bill would apply to “highly compensated” state workers who earn more than $76,577 annually, which is 60 percent of the governor’s salary.
One group of employees would be prohibited from getting severance pay at all: commissioners, deputy commissioners, assistant commissioners and “public officials” as defined by law.
Sparking the bill was Dayton’s approval of three month’s severance pay for three former members of his cabinet:
The severance payments came to light in a Sept. 20, 2016, report by American Public Media that noted eight other departing commissioners had not received similar payouts.
The state’s latest economic forecast projects a budget deficit of $188 million for the current two-year biennium, and a $586 million deficit for the 2020-21 biennium
The Minnesota Supreme Court on Thursday upheld Gov. Mark Dayton’s line-item veto of the Legislature’s 2018-19 operating budget.
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