Latest / The SEANC View / COLAs, Health Care, and the Fight for State Workers and Retirees in 2026
Transcript
- 0:00Hello, everyone, and welcome to another edition of the Scenic View podcast.
- 0:03If you are hearing the sound of my voice, you survived New Year's and you're
- 0:07ready to tackle 2026. So let's get to it.
- 0:20All right. As I did not mention before, my name is Jonathan Owens.
- 0:23I'm the communications director here at Scenic alongside Artis Watkins,
- 0:28executive director, Suzanne Beasley, government relations director,
- 0:31and Sammy Klein, our podcast producer.
- 0:34And we have a special guest, the specialist of guests.
- 0:38Scenic president, the esteemed Wendell Powell joining us on this first episode
- 0:43of the new year to talk about what's going to happen in 2026 and what we're
- 0:48looking forward to and what we're excited about. So how are you guys doing?
- 0:51I'm glad to be here. I mean, being here in 2026, we survived the new year.
- 0:56So, hey, we're ready to get busy.
- 0:59Let's get down to it. How about you folks? We're always excited.
- 1:03But I know, Wendell, you worked your hiney off ending 2025.
- 1:09So, yeah. It was a very busy end of 2025.
- 1:14Meetings, a lot of holiday get-togethers and showing my face and getting out
- 1:19across the state and still doing work in the prison.
- 1:22So it was a lot to get done. But I'm happy that things have calmed down.
- 1:27Yeah, we always talk about on our social media every holiday.
- 1:30We throw a shout out to the folks who have to work on holidays.
- 1:34And you actually yourself had to work this year, right? Yep,
- 1:38Christmas Eve and Christmas Day.
- 1:40I always shout out to people who say, hey, make sure you're state employees that are working.
- 1:44Save them on a plate or bring them a plate. That's right.
- 1:47Remind everybody what you do, Wendell. I'm a correctional captain at Harnett
- 1:51Correctional. So like I said, I run shift.
- 1:54And, you know, we make sure that everyone's where they're supposed to be.
- 1:58If you're part of the North Carolina political world and you have happened upon
- 2:01this podcast, this is a great example right here in the room with us.
- 2:06State employees, you don't really think about them. You would think about them
- 2:10if they weren't there, but you don't think about them. They went without a raise this year.
- 2:14They got their premiums increased on their health care.
- 2:17And everybody thinks all of this is okay. But remember, when you're home on
- 2:22Christmas Eve, wrapping last-minute presents, enjoying some eggnog,
- 2:27There are many, many people like Wendell, not just in the prison system,
- 2:31but all over state government who have to work.
- 2:34And that's not true of most of the private sector.
- 2:37So just remember, this is part of what it looks like.
- 2:41You're essential, and yet you're not treated as essential when it comes down
- 2:46to paying you and giving you your promised benefits.
- 2:49You would actually be surprised how many state agencies are actually working during the holidays.
- 2:55Ensuring the roads are clear, all this inclement weather, making sure certain
- 3:00services are being done, you know, the troopers are out.
- 3:04You know, we're still doing what we do in prisons.
- 3:07We're like a little city. We're 24-7.
- 3:10HHS facilities. Yeah, DHHS. I mean, all of that doesn't stop just because holidays happen.
- 3:15Hospitals, you know. So there's a lot of agencies that just.
- 3:18And we have the conversation regularly, too, that public perception works.
- 3:23Of state employees is not widely understood or widely appreciated, clearly.
- 3:28And it would be nice if one day, you know, we can get groups to just walk a
- 3:32day in the state employees' shoes just to see the day in, the day out, start to finish.
- 3:38This is how I start my day. This is what happens during the day.
- 3:41This is how I interact with the public.
- 3:43What's important? What's not so important? What are our things that we must get done?
- 3:48Because we're all mandated to do certain things that you don't think,
- 3:52you might think is menial, but we're mandated to make sure these things happen like clockwork.
- 3:57So things you take for granted, you know, you think, oh, well,
- 4:00it's supposed to be that way.
- 4:02But there's people who are trying to make sure that that happens.
- 4:05Your services aren't interrupted.
- 4:07Can't just shut down the prison and send people home, right? Oh, no.
- 4:11And y'all are doing all of this in a staffing crisis. Yes. Yeah.
- 4:16Not to be flippant, but I'll bring some levity to the discussion.
- 4:20Are the inmates any nicer on Christmas Day?
- 4:23Actually, during the holidays, they're actually more chill during the holidays
- 4:27than they are in the other times.
- 4:29Most of them, you know, they're focused on their families.
- 4:33They've heard from their families. You know, they get their Christmas meals.
- 4:37We have different churches, organizations that come through and do things for
- 4:41the offenders. So, you know, they're more laid back. You don't really have as many issues.
- 4:47During the holidays. Had a little extra joy. Yeah. Yeah. Well,
- 4:50that's nice to know. Most of them were festive.
- 4:52Yeah. Like I said on this episode, we do want to kind of look ahead at 2026.
- 4:58Since you'll be listening to this on the second day of the year.
- 5:01And we've already got a little bit of foreshadowing of what's to come this year.
- 5:06Two items out of the state treasurer Brad Briner's office about what's to come in 2026.
- 5:12Possible premium increases yet again, and he is not supporting a COLA for this year.
- 5:17So those are two. I just want to maybe jump out and we'll talk about that first.
- 5:22I think there's going to be a lot of people upset because I already have staff
- 5:25reaching out to me about what's going on with our premiums. Health care is the
- 5:29biggest thing right now in these premiums.
- 5:32And to hear that you're going to increase the premiums on top of what's already
- 5:35increased for 2020. And no pay raise.
- 5:38And we haven't even had a budget or a pay raise yet. So everybody's holding
- 5:42their purses. Let me ask you this, Wendell, since you're here.
- 5:46You supervise people in a lot of different pay grades.
- 5:49The way the treasurer's office had the board do the increases for premiums this
- 5:54year in the health plan was dependent on wage. So the lower you made,
- 5:59the lower your increase was.
- 6:01Their idea was that that would only be fair, that people who could afford it, quote, should pay more.
- 6:08Although I do want to say the CEO of a health care system making $25 million
- 6:12a year, we're not asking him and his system to afford anything else. But hey, I digress.
- 6:19So what are you hearing from folks? Are they like, yeah, OK,
- 6:22I like it better because it's.
- 6:24Well, from what I'm hearing, I mean, this is coming from wardens.
- 6:28You're talking about people, you know, who are higher level in the state.
- 6:32They're all complaining because they're like me.
- 6:35They're supporting the family. You know, I have the high option family.
- 6:38So I'm paying the high option.
- 6:41So I'm paying more than an officer or a sergeant, you know, people on those pay grades.
- 6:48So it's a lot just to support your family. And that's monthly,
- 6:52you know, coming out. So you take a big hit, and then you're talking about everything's
- 6:58going up, the prices of food, gas.
- 7:01So you have to factor all that in, and that's a nice chunk out of your day-to-day
- 7:05living and trying to foreshadow for the year the kids need.
- 7:10You know, how's this year going to look?
- 7:13Well, and I think, you know, John said possible health plan premium increases in 2026.
- 7:20What the stated intention sounded like. The treasurer did a call with the media
- 7:25where they could ask questions this past week,
- 7:28And he was kind of sounding, Suzanne, like it was very likely that what the
- 7:34treasurer's office will ask the board to do is increase those again.
- 7:38And I think he said by at least $20 a month.
- 7:40An unrealistic for us not to expect that. Oh, yeah.
- 7:43And you already have state employees who are complaining about issues going
- 7:47to the doctor and the health care and their co-pays are up.
- 7:50So now you're adding more fees, more money coming out their pocket.
- 7:55You know, it shouldn't cost you $100 to go see a doctor. when you're sick.
- 8:00We understand the co-pays. We understand specialties or something like that.
- 8:06But just to have you to see my doctor, I got to pay you $100 to $200 just to see a doctor.
- 8:11It's not feasible to be out of work, especially if your job says,
- 8:16hey, I need a note because you're out for a couple of days and now you're spending money.
- 8:21You're getting it from both directions. It's a lot. And again, I say no pay raise.
- 8:26Yeah, it's unfair. So it's interesting, though, a lot of the way this has been put out there.
- 8:32And it has been, oh, this is because Dale Falwell didn't increase premiums on
- 8:37state employees for seven years.
- 8:39Thomas Friedman, the executive administrator of the plan, was quoted in a story
- 8:42by Rose Hoban last week saying, I keep saying today, y'all, because here's the deal.
- 8:47We record this ahead of time to go out January 2nd.
- 8:51But Rose Hoban wrote a story for, I think it's North Carolina Health News.
- 8:56She was at our board meeting of the Board of Trustees of the health plan.
- 8:59And she said, yep, they talked about the financial issues with the plan.
- 9:04And she quoted Thomas Friedman, and I'm paraphrasing here, as saying,
- 9:07you know, if we'd been raising premiums every year on state employees this whole
- 9:12time, we wouldn't be in this fix.
- 9:14Well, there's nothing to say that's true.
- 9:17We love Thomas. We've had him on this program a number of times,
- 9:21but let me tell you why there's nothing to say that's true.
- 9:24We have no evidence, no proof of what we pay, you know, healthcare systems.
- 9:31We talked about on one of these podcasts recently, one of the CEOs of those
- 9:35systems makes $25 million a year.
- 9:38But we can't see what we're paying them with our state money that's meant for this employee benefit.
- 9:45So they're overcharging us is the almost 100% likelihood here.
- 9:50And by multiple times what they should be charging us.
- 9:54So to say if the employees had paid more premium, we would be okay.
- 9:58Sounds like a bunch of hooey to me, because what would have happened is those
- 10:02guys would have just kept overcharging more.
- 10:04And you really know that when you look at North Carolina being the number one
- 10:09costliest place for health care in the country, period, not even just looking
- 10:14at state employees and retirees.
- 10:16So Dale Falwell, did he cause that too? Did Dale Falwell not increasing our
- 10:21premiums make North Carolina the most expensive place for absolutely everybody,
- 10:24even if they work in the private sector.
- 10:26It's silly. It is absolutely silly to say, we just haven't been taken enough
- 10:31out of the wallets of our state employees to make this system work.
- 10:35But hey, don't make us show you what we're paying for your health care.
- 10:39So the other thing about Rose's article that was interesting to me,
- 10:43she went to this health plan meeting, listened to the whole thing,
- 10:45and did her research elsewhere to write this article. And I didn't see,
- 10:51anything about what has been very public, the $25 million salary,
- 10:56other huge healthcare executive raises.
- 11:00That can only happen if your profit is way out of whack.
- 11:05Not a word to that in the article. So it is just a given out there right now
- 11:11to let it go and not talk about that piece and only talk about.
- 11:17Yes, state employees don't pay as much premium as we think they should or as
- 11:21much as some people think everyone,
- 11:23everyone in the private sector does, which is also not true because I have friends
- 11:27who work for some companies who provide amazing health care and even their dependent coverage is very,
- 11:35very low because it's a benefit to be competitive.
- 11:38So it's not true that everywhere else that people pay huge amounts for their
- 11:43health care, but it's also overlooking the fact that state employees take less
- 11:48salary, supposedly for better benefits, but it's not better benefits now. It's not.
- 11:54No, it has eroded over the time. And I think, like you said,
- 11:58artists, they need to look at the profitability and versus what the actual state
- 12:03employees are contributing.
- 12:05Because if you're making wide
- 12:07profit margins, that means you're making money. Nobody will show that.
- 12:11So it's easy just to say you should have been paying more all along,
- 12:14but we're going to fight back on that, but I said I wasn't going to rant and
- 12:17rave because this is the new year, and we're going to rant and rave plenty of
- 12:22the year, and you're going to be our partner in that if you're a state employee,
- 12:25retiree, or a friend or loved one of a state employee or retiree.
- 12:30Hopefully, you will listen to this podcast and know when it's time to rant and
- 12:33rave, but what we need to do is keep framing the issues for what 2026 is going to bring.
- 12:38And Sammy was a little perplexed over here. What were you thinking?
- 12:41I saw the wheels turning in your head during that. My thought process is,
- 12:46okay, so they're saying...
- 12:48Del Falwell should have raised premiums. That wouldn't have made state employees any happier. No.
- 12:55If you just kept doing it every year. Well, no, no, no. They don't think it
- 12:59would have made state employees happier. The point is they don't care.
- 13:02Well, why are we playing the blame game?
- 13:03Because it's easier. Either way, no one's happy. Because it protects the massive powers that be.
- 13:08The powers that be that pay $25 million salaries to one person.
- 13:12It protects them. I believe former
- 13:14treasurer of Falwell called that the cartel. He called it the cartel.
- 13:18And what his issue was, when Dale Falwell was treasurer, is I'm not going to
- 13:24stick it to the working people, to the police officers, to the teachers,
- 13:28to folks working in prisons, to folks working in HHS institutions.
- 13:32I'm not going to stick it to them when I can't say what we're paying to these
- 13:38massive corporations running these hospitals.
- 13:41So to say something like that, wouldn't you think that Reiner and Friedman have
- 13:45kind of an idea of what they think premiums should be? And are they working up to a level?
- 13:50And it's because if you said that Falwell should have raised premiums for eight
- 13:54years, what if he did that like $20 every eight years?
- 13:57It would be up to $160 a month. I'll tell you how we should look at this.
- 14:01When the school vouchers, when that bill was passed, private schools cost what they cost.
- 14:08And what happened to private schools the next year after we said you can have
- 14:12some money to send your children to private schools? The state will pay for part of that.
- 14:16Exactly. The tuition went up. Tuition went up. So you could increase the premiums
- 14:21on state employees, and I promise you now.
- 14:24The price that we're paying for health care will go up yet again.
- 14:28And that affects every single person in the market, not just state employees.
- 14:32Yeah, the providers are going to take what they can. I mean,
- 14:34it's just free market economy, right? I mean, it's like capitalism.
- 14:38You get as much profit as you can. It's becoming a monopoly that kind of lies
- 14:43in the face of capitalism.
- 14:45Yeah, because people can't not have health care. Right, and then you'll hear,
- 14:49oh, you know, we've got to take care of these health care systems because otherwise
- 14:53we won't have rural health care.
- 14:55Who's been buying up and often closing facilities that provided health care in rural areas?
- 15:01These health care megacorporations.
- 15:04If that solved the problem, we're overpaying now.
- 15:07If overpaying was solving the problem and providing plentiful health care in
- 15:12our rural areas, we'd have that now, and we don't.
- 15:15We wouldn't be the bottom of the list. Yeah. I grew up in a rural area.
- 15:20My primary care doctor was bought by UNC once I went to college.
- 15:24My mom, her company just sold their practice to a large facility,
- 15:29even though they were a small private owned practice and catered to the people in that area. Yeah.
- 15:34And I was talking to someone probably like a month ago.
- 15:37We were just talking about history. And I remember when certain areas like in
- 15:43Greenville, their health care, their hospital was small or certain areas.
- 15:48You had these little outfits and now or they were like urgent cares and now
- 15:54they're like huge complexes.
- 15:56I mean, you see these and it's everywhere. They're just I mean,
- 16:00they're huge. So they're getting money.
- 16:02They're building new facilities. So there's money in health care.
- 16:06So you can't say there's no money or you're struggling when you're buying.
- 16:10You're creating new. Buying and building, yeah. Yeah, using spreads.
- 16:14With grand pianos in the lobby, right?
- 16:17Back to what you said, Wendell, about.
- 16:20State employees' benefits eroding. Interestingly, I had a conversation with
- 16:24someone last night who has been offered a job with the state and declined it
- 16:29because of the provision in 21 when they stopped giving health insurance at retirement.
- 16:36Yeah. It's like, yeah, that's a big deal. But this person would not refuse to
- 16:40take the job because that was the point in coming to work for the state.
- 16:44They knew they weren't going to make a ton of money. That was the original promise.
- 16:48The original promise was, hey, we're not going to pay you a lot,
- 16:51but your health care package and your benefits, their health care was supposed
- 16:56to be better than the private sector. Right. And retirement. And retirement.
- 17:01Now, when you look at the overall, it's way worse. It's not beneficial.
- 17:06No one wants to come to the state because they're like, I can work at Burger
- 17:09King and make more. I was just out west last month, and basically the prison
- 17:15couldn't even compete with the fast food and the job fairs.
- 17:20Because Burger King, Subway, Sonic, they were making more than correctional staff.
- 17:27With benefits. With benefits in the area.
- 17:29So state employees and some of the job fairs they couldn't even go to because
- 17:34this prison wasn't paying enough.
- 17:36I thought that blew my mind. I said, how can the state agency not pay enough
- 17:41that you can't go to a job fair? Right.
- 17:46Yeah, that was just incredibly telling to have that conversation last night.
- 17:51Yeah, we've got a huge problem. So in 2026, one of the issues that will be hopping,
- 17:57and I mean hopping, is going to be health care because the legislature needs
- 18:03to weigh in at this point.
- 18:04The problem we had where Dale Falwell had said, I'm not going to put it on the
- 18:08backs of these average working state employees,
- 18:11is because he was told he could not make public this information about public
- 18:19money that was being spent on this health care. And he wanted to make that public.
- 18:25He wanted to be super transparent.
- 18:27And he was met with resistance at that time from the folks who were in the legislature
- 18:32at that time. Now, that's not this current legislature, so it's not anybody's fault right now.
- 18:37But the people who are there right now in 2026 have some work to do.
- 18:42They can either decide they continue to sweep all that under the rug and,
- 18:46you know, keep this stuff hidden and make it fine and legal to keep it hidden
- 18:50or they do something about it. That's where we are.
- 18:53Just feels like even nationally, the leaders don't want to pay for health care
- 18:58or subsidize health care because they say it costs too much. Right.
- 19:02It's too much of a burden. It does cost too much. But why does it cost too much?
- 19:06Well, we're having a whole debate over whether to subsidize when the debate
- 19:11should be, why in the heck does it cost what it costs?
- 19:15Yeah. And that's what no one wants to discuss, John. That's my whole thing.
- 19:20My problem with this is that if you won't put the numbers out there and it's
- 19:24public money, we're in an era in North Carolina politics of transparency.
- 19:30Except where we don't want it. Except where we don't want to look.
- 19:33And that's where the big money power people are. And nobody wants to look at
- 19:38them. But for the average person...
- 19:41Listening to this right now, they don't give a poop if somebody makes $25 million
- 19:45to run a health care system.
- 19:47They care if they can put food on the table for their family.
- 19:50Yeah. You know, this is just wrong. A slight tangent.
- 19:55We regulate energy costs, electricity costs, right?
- 20:00Why do we not regulate health care costs? It's just as important.
- 20:03I think you can. It's too much money in it. You don't even have to go that far.
- 20:07Just make them say what you're paying them.
- 20:09Yeah. That'll be embarrassing. Just tell people what you're paying them.
- 20:13It will be embarrassing enough. Yeah.
- 20:15That's all we need. Because you see those stories all the time.
- 20:18We're not looking for more regulation, to be clear.
- 20:20We're not looking for more government interference. In fact,
- 20:23we're looking for government to stop interfering by stop hiding things.
- 20:28That's all we're asking for. Just put it out there. They don't want to show the money.
- 20:31They have to show their hand. So what this says for us in the year 2026,
- 20:37this doesn't have to happen to you as a citizen.
- 20:40It doesn't have to happen to you as a state employee or retiree.
- 20:44We have ways to fight back.
- 20:46Listen to this podcast. If you're not a member of Scenic, join Scenic.
- 20:50We will be more active than ever on the issue of health care.
- 20:54And I know the other issue you just mentioned, John, that is equally important
- 20:59is cost of living adjustments for our retirees. Mm-hmm.
- 21:04So, in a story from December 17th on the carolinapublicpress.org,
- 21:09State Treasurer Briner opposes COLA for state retirees, which is not a great
- 21:14headline for a state employee and, I mean, for the state retirees to hear.
- 21:19Yeah, retirees are going to be very much in an uproar. They're already done
- 21:23their service to the state. And, you know, you have to think about that.
- 21:26You know, you work for the state 30-plus years back when some of the salaries
- 21:30were lower than they are now. So how are they getting along?
- 21:35It makes a big impact. And it doesn't entice people to become state employees
- 21:40because they're looking at, okay, long range for your retirement.
- 21:43If you're not even trying to give them COLAs or have the adjustment for their
- 21:47living expenses, then what was the point?
- 21:50Yeah, we've got a chart, actually, that, you know, it's the history of COLAs. A nice table we made.
- 21:572017 was the last time that a true COLA was given to retirees.
- 22:01It was 1%. and then there's a bunch of zeros in that column of the table where
- 22:05there have been no COLAs. Now, part of that time was,
- 22:08was during a period where we didn't have money, so you can't have a COLA.
- 22:14Money meaning gains profit off of our investments.
- 22:18So we can't have a COLA because we're not making the money in the system.
- 22:22You guys have heard me say it before. The system is built to produce its own
- 22:25COLA from gains from investments. So that's been the problem.
- 22:30Not enough money can't have a COLA. Here we are.
- 22:33Was it $14 billion? I believe the number was just a few weeks ago.
- 22:36In investment gains that have been experienced in the retirement system,
- 22:41and we still can't have a COLA.
- 22:43So, you know, the basic gist of the story was that the state retirement system
- 22:48has gained about six and a half or seven percent, which is about 16 billion
- 22:52dollars, which we talked about a few weeks ago.
- 22:55And then they asked Briner, you know, well, that's great.
- 22:58And the retirees get a COLA now. And he turned to the unfunded liability and
- 23:02the debt and said there's still a lot of work to do on that.
- 23:07And then you, Suzanne, were actually quoted in the story. Thanks for doing this interview.
- 23:12Sure. You said everybody's not going to retire at the same time.
- 23:15So while it's important that we get back under control, the sky is also not
- 23:19falling. That's right. Good job. They need a cola.
- 23:22They need a cola. There's money. The treasurer's department has reported that money. It's big money.
- 23:28When do we get a cola? And you also got the word but into a story. Did you know that?
- 23:34You said Treasurer Briner is obviously kicking butt with his investment strategy.
- 23:39All right. What we would like to see is that money used in a way that directly
- 23:43affects the pocketbooks of retirement.
- 23:45Yes. Yeah. Our territories are struggling.
- 23:47Why do we care if you make 50% in returns? If people are going to turn around
- 23:51and say, no, we've got this other thing we need it for, which,
- 23:54by the way, when Dale Falwell was focused so intently on the unfunded liability, no one cared.
- 24:01Yeah. So this is another case of where, look, the goalposts are moving for state
- 24:07employees and retirees.
- 24:09They're just moving. If we make money, I don't know, we've got to fund the unfunded liability.
- 24:13If we don't make money and we say the unfunded liability matters,
- 24:17you can't have anything because of all that either.
- 24:20Briner thinks that 2027 could be a more appropriate time for the legislature
- 24:25to approve the COMA. It's always the next year, right? The next year.
- 24:27It's always the next year.
- 24:28Always. Always has been. We'll go to Disney World next year, kids.
- 24:33Exactly. Y'all just be good. I gladly pay you Tuesday for a hamburger today.
- 24:37Yeah. That's a bad concept to run the state on.
- 24:41And retirees lost 30% of their buying power. Guess what?
- 24:462027, the electric company won't want their money. They want it right now.
- 24:50That's what retirees are facing.
- 24:52So, yeah, Suzanne and I worked a little bit on this chart together this week
- 24:56that she was mentioning.
- 24:58And I thought it was interesting just looking at the numbers.
- 25:02Retirees have lost buying power every year since 2001.
- 25:08And in 2011, they actually went below zero. So they actually started having negative.
- 25:16And so now they're 30.7 percent below the cost of living if it had kept up with inflation.
- 25:25Right. And as we talked recently with the secretary of the Department of Military
- 25:30and Veterans Affairs, we were talking about how we want North Carolina to be
- 25:33a place retired military would want to come because they're such a big part of your economy.
- 25:38Retirees spend money. Same is true of state employees, and we talked about that
- 25:42on this podcast recently.
- 25:43If you're not increasing what the retirees are bringing home,
- 25:47that's money literally not going into your local economies. Yeah.
- 25:52You're hurting your economy.
- 25:53So that means that no tax revenue. Sometimes you can spend a dollar and you don't get it back.
- 25:59But that dollar you give to a retiree, the state's going to get back.
- 26:03Yeah. They're not going to Cabo. Nope.
- 26:06So that means that retirees check from 2011 bought 30 percent more than it does now.
- 26:14I like to do that. That's a good way to write down.
- 26:18Different ways to think about that. So in 1999, retirees, the raise was 12%
- 26:25more than the cost of living adjustment.
- 26:28So those were good days.
- 26:31Okay, that's enough math talk for me. But I did like doing this table.
- 26:35And it's on our website, too. You can go check it out. And then there's the other piece.
- 26:39You know, if you're doing a math equation, you have to have all the variables.
- 26:42And the variable we still don't have on retirement is the same one we don't
- 26:46have on health care. What do the contracts with the investment managers investing
- 26:50this money? What do they say?
- 26:53We don't know. It's public money. It's not just public money.
- 26:56It's public money. And then it's 6% of every employee's paycheck every month.
- 27:01So some of it's your money. You know, double your money.
- 27:05Your money as a taxpayer, but also 6% of your paycheck has to go into this system.
- 27:10But then you can't see where it's being, what the terms are of how it's invested. Yeah.
- 27:16That's what would irritate me. I'd be sitting there like, give me my money back
- 27:19then. This probably, I mean, I'm sorry.
- 27:21I'm not calling you old. artists, but this predates you, but maybe you have some insight.
- 27:32Like, why were the Colas so much more in the 80s and 90s than they are now?
- 27:37So the system was funded fairly consistently.
- 27:42And it was also invested under treasurer Harlan Boyles for years and years in
- 27:47a really conservative way, kind of the way Briner's talking about wanting to conserve now.
- 27:54Harlan Boyles was pretty much a 65-35 split investment-wise,
- 27:58and I think Treasurer Briner's talking about something like a 70-30 split in around 2001.
- 28:03Yeah, that's pretty much the change section.
- 28:06You can tell I'm old. In 2001.
- 28:09No, that was the year then-Governor Easley escrowed some retirement funds,
- 28:14which Scenic had to sue, and it took years and went all the way to the Supreme
- 28:17Court to get that money properly put in the system, get that money back.
- 28:21But in addition to that, that was the year the state took a complete holiday,
- 28:26didn't put anything in towards their employees' retirement. Now think about it.
- 28:29If you did that in your personal investment, you'd throw yourself back deeply
- 28:35if you weren't putting anything in for a year.
- 28:38Well, the next year, I think it was less than a quarter percent,
- 28:41and we inched up from there. Now you're seeing the legislature put in big amounts.
- 28:46But it's out of desperation and necessity. Again, how much desperation and necessity?
- 28:53We're not sure because we can't see the contract. So we don't know what we're
- 28:55paying people to invest this money.
- 28:57You could be paying people any number of hidden fees.
- 29:00And the reason we say this is not just to be conspiracy theorists,
- 29:05but because there is proof of other public pension systems doing this.
- 29:10And what tends to happen is most people have very similar contracts all over the country.
- 29:13Guess what? the teaser's total increase in 1989 was? Do tell.
- 29:196.7%. That's the highest on the list.
- 29:23Yeah, but remember, when you retire in North Carolina, you start out well behind
- 29:29what you would in any other state in terms of how your retirement check will be calculated.
- 29:34Yeah, that year did include a formula increase, which is what you're talking
- 29:38about, the starting formula.
- 29:40So yeah, so for 2026, you know, the gauntlet's been thrown down,
- 29:44that you're not going to see the treasurer's office apparently fight for a COLA.
- 29:48If you don't have the treasurer's office fighting for a COLA,
- 29:50it is beyond impossible to get one out of the legislature, except it's an election
- 29:56year. And retirees, you need to get vocal.
- 29:58Yeah, yeah. And that brings us to our next topic, which it's an election year.
- 30:02And I guess all of these things tie into that.
- 30:05Well, I would say before you even get to that one, pay would be the next. Oh, yeah.
- 30:09Yeah, let's talk about that. I mean, obviously they have to do something about
- 30:13the, or I guess they don't have to do a budget, right?
- 30:16You would think they would, right? Well, I mean. You thought they would this
- 30:19year. Yeah. I'll shut up. You know, you can think anything you want to. You don't have to.
- 30:24Yeah, they don't have to. And we were told at the end of June,
- 30:28I think it was, maybe it was in August.
- 30:30Anyway, when they took their break, was told by someone in leadership,
- 30:33actually, that they would not be talking about a budget until they came back
- 30:37for short session. And it does appear that that's the way it's going to play out.
- 30:40Any idea what we're talking about percentage wise or anything?
- 30:44No. Oh, my guess is if they throw anything out there, they'll throw 2% out.
- 30:482% is the standard. The standard election year 2%, if anything.
- 30:52And then that's going to, state employees are going to have fit.
- 30:56Now, I don't know, they'll propose probably a one-time something for retirees,
- 31:02which after taxes of that won't change their lives. Yeah.
- 31:06But all of these things, the thought
- 31:07will be this might be just enough for people not to be super angry.
- 31:10And I'm thinking this is what's going to come out of both the governor's office,
- 31:14which is a Democratic governor, and then the Republican-run legislature.
- 31:18I don't think anybody's going to come out of the box saying,
- 31:20yep, give those state employees 8%. I might be proven wrong, and I sure hope I am.
- 31:26I hope that they all hear people like Wendell talking about what they face and
- 31:30the dire situation they're in staffing-wise, and realize that as important as
- 31:37teacher raises are, that there's other roles.
- 31:39Public employees out there just as important, doing tremendously vital work.
- 31:45And they're going to quit those jobs if you don't do so.
- 31:48So that means Senate members and state employees, you need to be prepared.
- 31:53You need to be knowledgeable about your voting practices and who you're voting for.
- 31:57You need to understand, you know, what districts you represent.
- 32:01You need to understand, you know, what your health care actually looks like
- 32:05and what you're signed up for or what are options?
- 32:08You know, right now we have Lantern going on. They're starting up January.
- 32:12They started January 1st. So if you have procedures, they are offering free options.
- 32:18Please take advantage of anything that's out there that'll help you as a state
- 32:22employee to, you know, get further ahead because as you can see that you're
- 32:27not getting any help from our leadership.
- 32:30So I have a question for y'all. There's a chance this could be a close election
- 32:34or closer than in years past at the legislature,
- 32:39does that multiply our effectiveness as a nonpartisan or bipartisan group?
- 32:47Like, are we a big pool of voters that are attainable for both sides enough
- 32:53so that they will listen to our concerns?
- 32:55Well, our success rate is pretty high when it comes to races.
- 33:00You're asking about in terms of raw numbers or what could...
- 33:03So there are certain legislative districts in which state employees and retirees
- 33:08are not as significant a presence, but there are more districts than not.
- 33:15In which if you had state employee, their spouse, or retiree and their spouse,
- 33:20any adult kids they have, or people.
- 33:23Neighbors and friends that love them and listen to them, voting for the person
- 33:27those folks say treats state employees and retirees well, it is enough people
- 33:31to make a difference in a vast number.
- 33:34Because you've got to remember, it's going to be low turnout.
- 33:36It's a midterm election. It's going to be low turnout.
- 33:39And so any group, whether it's state employees or any other group,
- 33:42If they can marshal their forces together and get them all educated and out
- 33:46to the polls for whoever it is that is throwing down for them,
- 33:51they can move the needle.
- 33:52So the areas like that, I guess, would be like Raleigh.
- 33:56It's actually, see, it depends.
- 33:58Yes, obviously you think Wake, Burke, Granville, Wayne.
- 34:03Those come to mind immediately as huge concentrations. But that's not where
- 34:07it's limited to, because you have to remember, so many retirees have gone and
- 34:11relocated from wherever they worked.
- 34:14So there are a number of communities where it's more than you think,
- 34:19and especially in terms of people who turn out and vote.
- 34:22What we have noticed with scenic members is they're not just registered to vote in huge numbers.
- 34:27They actually vote. They do vote, yeah. Yeah. They vote. And that's the gift
- 34:31that we have. So I guess our challenge as an organization is to educate those
- 34:36folks and get them all on the same page and voting as a block, right?
- 34:41Always a challenge. And also to get involved. And we're going to have the Impact
- 34:45Chair, Junior Hewlin, on here soon to talk about that.
- 34:48Because getting involved is where a group like Scenic that's so big can make
- 34:53the difference by boots on the ground, making phone calls, talking to everybody
- 34:57you can find, being really active in elections.
- 35:00I was listening to a podcast on the way here, Chuck Todd's podcast,
- 35:03and we're going to talk about podcasts in a second.
- 35:06But he was saying, you know, nationally, even, you know, like $100 donors don't matter at all.
- 35:12$10,000 donors don't even matter that much anymore.
- 35:15It's like the huge numbers that really matter.
- 35:19But groups like us have an advantage that we've already discussed this on on
- 35:24the podcast that, you know, our strength is our numbers.
- 35:27People. Yeah. I mean, you see commercials, every other commercial at election time for somebody.
- 35:31It's the net effect at this point is just noise. All the money you spend on
- 35:35signs, there's always the age old debate.
- 35:37Do signs work? No matter where you come down on that, that's a ton of money.
- 35:41All these things are a ton of money, but nobody can really show the huge impact
- 35:45of that compared to who are voters most influenced by.
- 35:49It's not any piece of election advertisement you come up with.
- 35:54It's somebody they know, trust and respect telling them about a candidate and
- 35:59believing in that candidate.
- 36:00And we hate to say this, but, you know, there's a lot of state employees who aren't scenic members.
- 36:05So talk about this to your co-workers and get them to join first off.
- 36:09You have to get active, you know, if you know Senate members,
- 36:13at least educate them on our, you know, go to a meeting, find out where the
- 36:16local meetings are in your areas and go and become informed because at our meetings,
- 36:20we do give our information, what's going on in the area, what's going on across the state.
- 36:25You know, what are going on in these state races, you know, how to get involved
- 36:29in impact and to affect, you know, your family.
- 36:33Because who you choose affects how your family is taken care of and the future of our state.
- 36:38So like I was saying about the podcast we were discussing before we went on
- 36:43air here, it's important that you know who you're getting information from, too.
- 36:48And I think that we could, you know, suggest a few good places other than the
- 36:53Scenic View podcast, which should be first on your dial.
- 36:56You know, that should be your go-to. But if you want to learn more about elections and health care.
- 37:03Politics in general. Politics in general, news in general. But with the issues, yeah.
- 37:08Yeah. Make sure you're listening to and getting news from reputable sources.
- 37:14And that doesn't mean like one side or the other. That just means someone who's
- 37:19telling you real information, not something with an agenda.
- 37:24I guess here in North Carolina, we have some good political podcasts.
- 37:27Journalists, yeah. Yeah, journalists.
- 37:29I like Colin Campbell's WNC podcast, State Politics.
- 37:33The Under the Dome, Raleigh News and Observer podcast is always kind of a staple
- 37:38for everyone. And Tim Boyum.
- 37:40Yeah, Tim Boyum's Spectre News podcast. What's this called?
- 37:44Tying It Together. Tying It Together. That's right. I'm sorry, Tim.
- 37:47I listen to it every week. But yeah, just make sure you're listening to,
- 37:51just don't listen to some crazy person talking about God knows what.
- 37:55Make sure that the information you get is right. Well, if you want to maximize
- 37:59your ability to contact your elected representatives.
- 38:03And be knowledgeable on the issues and feel confident doing that.
- 38:07Again, we would suggest first join Scenic because we will get you all that information.
- 38:11We communicate all of that with our members all the time.
- 38:15But in addition to that, if you have time, you like to listen to podcasts,
- 38:20maybe you'd like to try them out, those are some good ones because that's just
- 38:24journalists talking about the issues.
- 38:26And when you call, you'll be amazed how much more confident you feel talking
- 38:29to elected officials. Yeah.
- 38:31I always think it's funny when someone, you know, spouts off that you have an
- 38:35agenda, you're scenic, you know, you have a.
- 38:38We sure do. We sure do. Like that's the thing that I always want to say.
- 38:42Protecting state employees and their families. Everyone has an agenda.
- 38:44But the thing I always want to chime back with is like, yes,
- 38:47our sole goal is to protect and enhance the benefits and rights of state employees. And our retirees.
- 38:54So if you're one of those groups, you should listen to us because that's all we're trying to do.
- 39:00Well, and I maintain that you don't have to be a state employer or retiree to
- 39:04care about what we're saying because you're paying taxes to get public services.
- 39:10Yeah. So, you know, we talked about it again a few weeks ago.
- 39:13If your taxes are cut, but your services are cut so deeply that you're thinking,
- 39:19this state doesn't seem like the state I used to live in.
- 39:22We're not getting much. It's getting kind of wonky. Yeah.
- 39:26Well, you have to follow what happens with public employees because that's who's
- 39:32providing the services your taxes go towards.
- 39:34No matter what your tax rate is, it's to provide services.
- 39:38Those are provided by people. And those are the people we're representing.
- 39:42And I'm going to tell you something. Let these services start dwindling.
- 39:45Yeah, it's already happened.
- 39:47Yeah. Then, you know, North Carolina is going to quickly not become one of not
- 39:51be one of those states people want to come and live. Right.
- 39:54It's already DMV was the big uproar because everybody knew that state employees.
- 39:58But Wendell, y'all are so understaffed and it it has been it's affected y'all
- 40:03in terms of staff and inmates getting hurt.
- 40:07It's affected y'all in all kinds of ways. But let somebody escape from the prison
- 40:11due to the understaffing and then hurt somebody. And let's see.
- 40:15You're going to see hell raised from beneath the earth's surface.
- 40:20Yep. But nobody can act surprised when that happens. Took six weeks to find
- 40:26that kid in Craven County.
- 40:28Yeah. But I'm telling you, if that were to happen, it would be outrageous for
- 40:33any politician to act surprised.
- 40:35Yeah. I think that's their biggest fear of something actually big happening.
- 40:40I mean, there's been a lot of things that's happened, but it doesn't make the news.
- 40:44There's a lot of things that happen inside and outside of institutions and state
- 40:48agencies that don't make the news, but there are things that would be concerns
- 40:53to the public if they understood the magnitude of if it went wrong.
- 40:58How that would affect their families. Well, we had a thing recently about infant formula.
- 41:05And, you know, the Department of Agriculture has scientists who make sure everything's
- 41:10cool with certain products that are sold, that they don't have bad things in
- 41:14them, and that they have what they say they have on the label.
- 41:17And we had an issue about infant formula that people from DHHS and Department
- 41:23of Agriculture would have been part of the protection for us so that our infants
- 41:27don't get formula that has something harmful to them in it.
- 41:31And that was an eye-opener. But those kind of things, unless it's happening
- 41:35to you, you don't really know about it.
- 41:37And it's just like, even like the DMV issue, like going back to that,
- 41:42you know, all of a sudden it's like a huge uproar about how long wait times
- 41:47are and all that, you know, just.
- 41:49But no one ever mentioned that they haven't been funded properly.
- 41:52Well, we didn't increase the number of people serving the public,
- 41:56despite the public increasing by, I think, 20% during that period of time.
- 42:00So they're serving 20% more people.
- 42:03The same number of. Again, to act shocked and outraged is funny to me.
- 42:12You're facing like a war of attrition. You can add more kiosks,
- 42:16but you still don't have the people that serves the kiosks or bandage.
- 42:20So it's like, you're really not helping me. It sounds great.
- 42:24And yeah, it's a good technological advancement, but who's running it?
- 42:29You still need the people to run it and maintain it.
- 42:34And again, that's a bipartisan issue, too, because we've had DMV just languished under both parties.
- 42:42And so this is all like people have got to speak up because politicians, period. I don't care,
- 42:50Who your legislator is, what party they affiliate with, what consonant is next
- 42:55to their name on the ballot.
- 42:56It's going to be the same old, same old until the public demands more.
- 43:00Well, before we go, I just want to talk a little bit to Wendell here about what
- 43:05he has planned for this year for Scenic.
- 43:07I think that's an important thing.
- 43:09Put me on the spot. Well, for the 2026 year, like I said, the biggest thing
- 43:15is getting people informed, making
- 43:18sure information gets out about what's going on with our health care.
- 43:23Getting our retirees organized and understanding what they're facing and how
- 43:28we can help better get their situation supplemented and find avenues to get
- 43:33them active within the organization.
- 43:36And just get active in our communities because they need to hear,
- 43:39people need to hear their voice.
- 43:40You know, our people need to have their voices heard and they need,
- 43:44we need, like I said, we need to understand what's, what we're facing.
- 43:47You know, there's an economic downturn, things that cost more.
- 43:51You know, services are going up.
- 43:53So we need to be smarter as state employees and as consumers on how we can better
- 43:58take care of our families and make sure that we're still performing at a high
- 44:03rate for our state agencies to make the state better. Because at the end of
- 44:06the day, we care about the state.
- 44:08We want the state to prosper, and we want to prosper with it.
- 44:11But we also want to make sure we're taking care of our homes and we're handling
- 44:16our affairs accordingly.
- 44:18And one exciting thing that I know of to help with the old informing our members
- 44:23is we are launching a new website in January, February, Q1.
- 44:28We'll say Q1, 2026. It's going to be awesome, and you guys are in for a treat.
- 44:34Super excited for that. Yeah, I'm pretty excited about it as well. And that website is at?
- 44:39Scenic.org at www.scanc.org. I've noticed whenever you like spell out scenic,
- 44:46this is a tangent, like on your email address, you know, J-O-N-S-C-A-N-C.
- 44:53It always sounds like S-C-A-N-C.
- 44:56So I've missed a lot of emails that way. So I always pronunciate the E, but I digress.
- 45:02So I think we'll leave it there. It's been a long episode. Maybe we'll just
- 45:06not have a question this week. And we'll see you next week.