Will interest arbitration have a significant impact on the State budget?

A:

No.  Interest arbitration will not have a significant fiscal impact on the State budget:

  • Interest arbitration provides an incentive for the parties to reach an agreement; it prevents costly litigation and appeals’ processes and reduces the number of unfair labor practice charges the State must investigate.
  • Since 2007, there have been only 6 interest arbitration decisions regarding county corrections despite the fact that 19 counties are interest arbitration eligible.
  • Local 117 has not gone to interest arbitration with its eligible groups for over a decade.
  • HB1490 contains a “fiscal feasibility” clause, which would protect the State in the event of an unreasonably costly award.

View a PDF of interest arbitration talking points here.


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