Despite an economic downturn and widespread job and wage cuts for many workers, outgoing state Auditor A. Joseph DeNucci has awarded a 5 percent raise to his staff, retroactive to July 1.
A DeNucci spokesman defended the raises, which he said would cost about $350,000 through the end of the year, as just compensation for a staff that has not seen a pay boost in nearly four years and has taken 11 furlough days over the last two years, a concession equivalent to a 4 percent wage reduction.
But DeNucci’s move as he prepares to leave office could anger state workers and many in the private sector workforce who have lost their jobs, seen their unemployment benefits run out, or been forced to contend with pay and benefit cuts.
Indeed, the state budget that took effect July 1 is expected to lead to scores of layoffs elsewhere in state government, which was hit hard by the recession.
Governor Deval Patrick has eliminated 2,700 positions in the executive branch, has frozen merit pay increases for all 5,000 managers as of October 2008, and his 34,000 unionized employees — who make up the bulk of the workforce — have had a 1 percent pay increase over the last three years, according to Kyle Sullivan, a Patrick spokesman.
And state Treasurer Timothy P. Cahill — an elected official who, like DeNucci, has the authority to grant raises to his staff without the governor’s approval — has not given raises to his staff since July 2008, although his union employees have also received the contractual 1 percent increase, said his spokesman, David Kibbe.
The auditor’s office is charged with rooting out waste, fraud, and abuse in government. DeNucci, a former boxer, boasts that he has uncovered billions of dollars in unnecessary costs and uncollected revenue owed to the state.
Now that DeNucci is retiring, he can sidestep the fallout from the pay increase that he would probably face if he were a candidate for reelection — although he risks stoking voters’ anger at Beacon Hill in a year when many of his Democratic colleagues are seeking reelection.
Glenn Briere, a DeNucci spokesman, said the auditor would not be available for comment.
The issue of the pay raises is likely to animate the race to fill DeNucci’s seat, because it would be up to his successor to decide whether to continue or rescind the raises.
One of the Democratic candidates, Mike Lake, was sharply critical of the pay increase awarded by DeNucci, who is stepping down in January after holding the auditor’s job since 1987.
“I’m disappointed with this,’’ said Lake, a former White House aide who works at Northeastern University. “This is an example of awarding a parting gift at just the wrong moment in time. Now is the time to focus on getting those out of work back into jobs.’’
Still, Lake stopped short of saying he would rescind the pay increase if elected.
A Republican candidate, Mary Z. Connaughton, was also critical. “Jobs and financial security are the number-one issue facing people right now, and when state employees are getting raises, it puts a bad taste in people’s mouths,’’ she said.
Nevertheless, Connaughton, an accountant and former member of the Massachusetts Turnpike Authority board, also said it was too soon to threaten to rescind the increase.
Her Republican rival, Kamal Jain, however, called the increase “disrespectful to the taxpayers’’ and said he would scrap it if elected. “I believe in merit, and a blanket pay increase is not a meritorious pay increase, it’s an arbitrary pay increase,’’ said Jain, who works at a small high-tech company in Natick.
A second Democratic candidate, Worcester County Sheriff Guy Glodis, said he would review pay and staffing levels if elected. But as a candidate, “Guy is not in a position to make that assessment of whether the salary increases are justified or not,’’ said Ernie Corrigan, a spokesman. “You really need to be inside as an executive to make those determinations.’’
Glodis recently signed a collective bargaining agreement that raised pay for his correction officers by 7 percent over three years. Corrigan said Glodis also eliminated 25 staff positions to cope with a budget that was cut from $45.7 million in fiscal 2009 to $41.1 million in fiscal 2010.
A third Democratic candidate, Suzanne Bump, also declined to criticize the pay increase, but said she would review pay levels if elected. “Apparently, Auditor DeNucci has decided that this is appropriate for his staff at this time, and I respect his judgment,’’ said Bump, a former state representative and state labor secretary who has been endorsed by DeNucci.
Briere said the 5 percent pay increase was justified, given the steps DeNucci has taken to trim costs. The auditor has eliminated 40 positions in his office since Oct. 2008, mostly through attrition, and his remaining 300 staff, who are not unionized, have not had a pay increase since November 2006, Briere said.
Given that the 11 furlough days the staff has taken are equivalent to a 4 percent pay cut, the 5 percent pay increase “really amounts to a 1 percent increase,’’ Briere said.
Michael Levenson can be reached at mlevenson@globe.com.
