Nearly half of New York state workers could see paychecks delayed this week

ALBANY – Nearly half of the 258,000 state workers in New York could see their paychecks delayed this week because the Legislature has yet to pass a budget for the fiscal year beginning Wednesday, according to the State Comptroller's Office.

New York Gov. Andrew Cuomo's office disputed the comptroller's reasoning, however, instead claiming the state has the legal authority to process the payments.

The delay would apply to the 120,000 state workers who are classified as "administration," which includes most who work for state agencies, legislative staffers, and the court system.

It does not apply to "institutional" workers, including those who work in the state prison system, psychiatric centers and other operational facilities. Nor does it apply to employees of the State University of New York system, which operates on a different fiscal year.

According to the Comptroller's Office, the cause for the delay is due in part to the paycheck date for administrative workers falling on Wednesday, the first day of New York's fiscal year.

In order for the state paychecks to go out as scheduled, the State Comptroller's Office had to transmit the pay information to banks for direct deposit Monday evening.

But as of Tuesday evening, the Legislature and Cuomo had yet to agree on a state budget. Lawmakers had yet to approve a budget bill that included money for state operations or an emergency appropriation that funded the payroll.

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That kept the state from sending payroll information to the bank, according to the Comptroller's Office.

"Without this action, state employees scheduled to receive a direct deposit or paycheck on April 1, 2020 should now anticipate that this payment will be delayed until a new state budget is in place," said Jennifer Freeman, a spokesman for Comptroller Thomas DiNapoli.

Cuomo's office disputes reason for delay

A top aide to Cuomo, however, disputed the claim by DiNapoli's office, saying the comptroller had the full legal authority to process the payment because it was for work completed during the prior fiscal year.

Robert Mujica, Cuomo's budget director, said Tuesday that DiNapoli's office has a "computer issue" that it has to work through to ensure payments go through.

"The comptroller has the legal authority to make the payments now," said Robert Mujica, Cuomo's budget director.

That spurred DiNapoli's office to push back, noting it first warned state agencies of the potential pay issue with a bulletin issued March 5.

The issue appears to be related to workers who received "non-lag" paychecks, meaning their check date is on the final day of the two-week period they are getting paid for — which in this case is Wednesday, the first day of the new fiscal year.

"Lagged" employees have a two-week buffer between their pay period and their check date. They were due to be paid Wednesday for the pay period ending March 18.

Freeman, DiNapoli's spokeswoman, said requiring a budget or emergency appropriation is "the long-standing precedent for handling payroll when a budget deadline looms." The Comptroller's Office has never separated its lagged and non-lagged payrolls, she said.

“Hardworking state employees should not be held hostage to budget gridlock,” Freeman said.

A spokesman for the state Civil Service Employees Association, the largest union representing state workers, said the union is "aware of a potential delay of up to a day in paying our state workers."

“We are urging our state leaders to make sure the hard-working state workforce, many of whom are providing critical services to all New Yorkers during this crisis, are paid as quickly as possible," CSEA spokesman Mark Kotzin said in a statement Monday.

More: Cuomo closes New York schools until April 15 as coronavirus spread continues

Why the pay delay in New York?

The potential pay delay is not directly related to the coronavirus outbreak that has hit New York harder than any other state in the country, opening up a multi-billion-dollar hole in the $178 billion spending plan Cuomo first proposed in January.

Since the coronavirus outbreak hit New York in early March, the Legislature has been in session just sparingly.

The Senate approved a measure allowing remote voting Sunday and the Assembly followed suit Monday.

The Legislature was expected back in session as soon as late Tuesday night, when Cuomo and legislative leaders were hoping to strike an agreement on a final state budget.

More: New York state budget: 9 issues to watch for as the deadline looms for an on-time deal

Jon Campbell is a New York state government reporter for the USA TODAY Network. He can be reached at JCAMPBELL1@Gannett.com or on Twitter at @JonCampbellGAN.

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