From MPR: "Because of a once in a decade quirk in the calendar, employees at the University of Minnesota will receive an extra pay check in the next fiscal year, and it could cost the university upward of $41 million.... "I'm surprised it hasn't been on people's radar here," Pfutzenreuter said. "We've talked about it on numerous occasions over the last couple of years, but we're a complicated place and I think the communication isn't always as good as it could be. We knew it was coming.""
A few things to note. First, for non-salaried staff, they are not getting an "extra paycheck," they are getting paid for the work that they've done. Second, why are salaried employees affected by the extra pay period? Could this $41m just be the price of crappy software that can't spread the annual salary across a varying number of pay periods? Since I am paid based on a 9-month salary, I certainly don't expect to make more money this year just because there is an additional pay period. I've opted to have my salary paid over a 9-month period and across a 12-month period--so why is this any different? I don't think it's coincidental that the admin's initial furlough proposal was 10 days, which would be equivalent to one pay period. Third, the interconnection between the furloughs and the extra pay period needs deeper analysis, esp. across employee classes. Fourth, what a stunning admission of incompetence and irresponsibility from our CFO!
Also see Periodic Table for some sharp commentary on this issue: http://ptable.blogspot.com/2010/03/university-of-minnesota-financial.html#links