Senate panel votes to block United Way payroll deductions for public sector employees

? United Way officials in Lawrence and throughout Kansas said they were stunned Thursday by news that a Senate committee had advanced a bill that would prohibit the state and local school districts from deducting charitable contributions from employee paychecks.

“I’m a little floored here. I’m kind of speechless,” said Colleen Gregoire, vice president and campaign director for the United Way of Douglas County.

Thursday’s action in the Senate Commerce Committee dealt with two bills aimed at weakening the power of public employee labor unions. The bills, which were packaged together into a single measure, included one that would limit union negotiations just to hours and wages, eliminating other subjects such as grievance procedures, dress codes and promotion policies.

Sen. Tom Holland, center, D-Baldwin City, reacts to an amendment offered by Sen. Molly Baumgardner, right, that would prohibit public employees from using payroll deductions to make charitable contributions or many other kinds of commercial transactions.

The other bill would prohibit the state, school districts and other local governments from using their payroll systems to collect union dues from employee paychecks.

On the payroll deduction bill, union officials had argued that it would be unfair to single them out while still allowing other types of payroll deductions for outside entities such as credit unions, mortgage companies, car loan companies and even charities like the United Way.

So Sen. Molly Baumgardner, R-Louisburg, offered an amendment Thursday that effectively restricts payroll deductions just to taxes, employer-provided benefits and any type of legally mandatory withholding such as child support and wage garnishments.

That means charitable contributions and any type of commercial transaction like home or car payments would no longer be allowed to be made through payroll deductions.

An official from the Revisor of Statutes office later explained that Baumgardner’s amendment only applies to state agencies and school districts. Cities, counties and other local governments would still be allowed to withhold charitable contributions and other kinds of transactions, but not union dues.

“What this accomplishes is fairness, cost savings, and it protects the employee from really inadvertently but directly giving too much information to the employer about how they spend their money,” Baumgardner said. “Right now, if I get my paycheck, with my phone or with my iPad I can make any payments I want to from the bank.”

Her amendment passed on a voice vote. Democrats Tom Holland of Baldwin City and Oletha Faust-Goudeau of Wichita asked that their “no” votes be recorded. The amended bill now goes to the full Senate.

The panel then put the contents of both bills into a House bill, a procedure that means if the bill passes the Senate, the House can simply vote yes or no to concur or not, thus limiting debate and the possibility of other amendments.

“I look at shenanigans that we’re doing about basically limiting what people can add for deductions, and now we’re taking away their right to make voluntary contributions to United Way, your unions, whatever it is, what are we coming to here,” Holland said. “I view this Legislature as basically trying to suppress people’s freedom of assembly.”

“If the option to make charitable contributions through payroll deduction is removed, these longtime United Way donors may still choose to support this community-wide effort through other means of giving, but losing the convenience of payroll deduction could seriously affect the campaign totals,” Gregoire said.

She said about half of the people who contribute to the local United Way do so through payroll deductions, and public sector employees account for about 22 percent of the agenccy’s $1.65 million in annual contributions.

Miriam Krehbiel, president and CEO of the United Way of Greater Topeka, said she was shocked to hear what the committee had done.

“Oh my goodness, it would be huge,” Krehbiel said.

She said the Topeka United Way receives about $130,000 a year through payroll deductions from state and local government employees. That’s out of an annual contribution base of $3.5 to $3.7 million, she said.

“That is a very, very significant amount,” she said. “This really takes away the opportunity for employees to make a difference to their community in a tangible and convenient way.”