§ 74-4118. Unit incentive pay.

The Committee, in addition to individual incentive awards and individual incentive compensation, may award unit incentive pay in accordance with the provisions of this section.

A.  To qualify for the award of unit incentive pay to its employees, an agency, department, commission, or office shall demonstrate to the satisfaction of the Committee that said agency, department, commission, office, work unit or work team identified by the respective agency, department, commission or office has met both of the following two criteria in its operations, after adjustment for inflation or deflation:

1.  Operated at a lower unit cost.  "Unit cost" shall be defined as expenditures in dollars to complete a measurable unit of work.

a.For first-time participants the unit cost for the participating year shall be compared to either the unit cost for the immediately preceding twelve-month period or a standard unit cost approved by the Committee, or

b.For participants with one or more years in the program, the unit cost for the participating year shall be compared to either the average unit cost of prior successful participating years in the program or a standard unit cost approved by the Committee; and

2.  Operated at no greater total dollar expenditures, except:

a.in a case where unit costs are reduced but total expenditures increased due to the agency or office maintaining its level of service; or

b.in a case where the Legislature or department head specifically mandates an increase in the workload.

B.  The Committee shall satisfy itself that the claimed unit dollar cost of operation is real and not merely apparent, and that it is not, in whole or in part, the result of any of the following:

1.  A lowering of the level or quality of the service rendered; or

2.  Reduced pass-through on transfer expenditures; or

3.  Receipts realized in excess of amounts budgeted; or

4.  Nonrecurrence of expenditures which were single outlay, or one-time expenditures, in the preceding fiscal year; or

5.  Failure to reward deserving employees through promotions, reclassification, award of merit salary increments, or salary increases authorized by salary range revisions; or

6.  Postponement of normal purchases and repairs to a future fiscal year; or

7.  Stockpiling inventories in the immediately preceding fiscal year so as to reduce requirements in the eligible fiscal year; or

8.  Substitution of federal funds or any funds which are not state funds for state appropriations; or

9.  Unreasonable postponement of payments of accounts payable until the fiscal year immediately following the eligible fiscal year; or

10.  Shifting of expenses to another agency, department, commission, or office of government; or

11.  Any other practice, event, or device which the Committee decides has caused a distortion which misrepresents that a savings or increase in level of services has occurred.

C.  The Committee may consider but is not limited to considering as legitimate savings those reductions in expenditures made possible by such items as the following:

1.  Reductions in overtime; or

2.  Elimination of consultant fees; or

3.  Less temporary help; or

4.  Elimination of budgeted positions; or

5.  Improved methods of communication; or

6.  Improved systems and procedures; or

7.  Better development and utilization of manpower; or

8.  Elimination of unnecessary travel; or

9.  Elimination of unnecessary printing and mailing; or

10.  Elimination of unnecessary payments for advertising, memberships, dues, and subscriptions; or

11.  Elimination of waste, duplication, and operations of doubtful value; or

12.  Improved space utilization; or

13.  Proven cost-reduction techniques; or

14.  Any other items considered by the Committee as representing true savings.

Added by Laws 1984, c. 269, § 8, operative July 1, 1984.  Amended by Laws 1992, c. 126, § 1, eff. July 1, 1992; Laws 2005, c. 61, § 2, eff. Nov. 1, 2005.