Move to limit severance after $80G in payouts to three
Posted: February 11, 2017 - 4:00am

ST. PAUL, Minn. (AP) — Republican lawmakers are seeking to limit severance for highly paid state employees after Gov. Mark Dayton approved nearly $80,000 in payouts to three appointees who resigned.

The Democratic governor has faced criticism from Republicans for the payouts, which went to two economic development commissioners and a director of education since 2011. The lawmakers began work on a new law Tuesday that would limit severance pay for every non-unionized state employee — not just high-profile appointees — who make 60 percent of the governor's salary. The governor's current salary is $127,629, which means employees who make at least $76,000 would be affected by the proposal.

If passed, the bill would limit severance packages to the lesser of two metrics: six months of the employee's pay or an equation factoring in the employees rate of pay and unused sick time. Under current law, severance cannot exceed six months' pay.
Rep. Sarah Anderson, one of the original critics of the payments, said she didn't believe the governor's payments were legal because he didn't consult the state's compensation plan, which acts as a payment guideline for state employees. Under the proposed legislation, all severance payments would be routed through the plan.
Anderson, who is also the author of the bill, said the use of taxpayer money to fund exit packages for highly paid employees is a waste. At Tuesday's committee meeting, the Plymouth Republican was especially critical of former education director Sheila Wright's severance package.
"One of the commissioners had only been employed by the state for eight months and received, I think it was, $18,000," she said.
Dayton has defended the payments in the past, saying he felt the packages were appropriate considering the circumstances surrounding the three appointees.
Dayton's ability to both appoint and award severance packages was what originally drew the ire of the Republican Party when the news first broke in September, but Anderson's bill would actually to go a step further and limit severance for all highly paid state workers.
After little debate, the committee moved to shift control of the bill to another committee chaired by Anderson.