What is salary savings?
Salary savings is the amount of salary expense that a department saves when a position is vacant or filled at a lower salary level than the budgeted level. For example, if the salary for a position is $4,000 per month, then the department saves $4,000 per month (plus some salary driven benefit costs) when the position is vacant. 2. When did the Governor’s Budget begin to reflect salary savings? The Governor’s Budget for the 1943-45 biennium was the first to include a line item for salary savings in the Expenditures by Category. As with many innovations, salary savings was implemented as a response to a particular set of circumstances. In 1942 when this budget document was prepared, both government and industry were experiencing unprecedented turnover as employees left to enter the armed forces or work in war industries. In transmitting the budget to the Legislature, Governor Earl Warren noted, “This situation in man power (sic) has increased the number of unfilled positions until it ca
