[NYAPRS Enews] Newsday: Furloughs/Layoffs May Be NY's Next Steps To Closing Budget Gap

[Matt Canuteson]

Furloughs, Layoffs May Be State's Next Steps


James T. Madore Newsday September 27, 2009


ALBANY - Gov. David A. Paterson
<http://www.newsday.com/topics/David_A_Paterson>  and some lawmakers are
raising the specter of furloughs - and even layoffs - of state workers
to help close the growing budget deficit, as other big states have done.

"We've not had to furlough or lay off any workers, but the means of
balancing budgets are becoming less and less available, and everything
is on the table," Paterson said recently. "We are going to have to make
sure New York <http://www.newsday.com/topics/New_York%2C_NY>  can still
meet its obligations, that we don't delay payments which would injure
our financial status."

New York has been the exception among large states in not slashing its
200,000-person payroll. Four states and the District of Columbia
<http://www.newsday.com/topics/District_of_Columbia>  have fired workers
to close budget gaps. New Jersey
<http://www.newsday.com/topics/New_Jersey%2C_NY> , Connecticut
<http://www.newsday.com/topics/Connecticut>  and seven others issued
furloughs. Fourteen states, including California
<http://www.newsday.com/topics/California> , did both.

Paterson has acted modestly so far, in part because of the clout of
state employee unions. This year's record $131.8-billion budget, already
$3 billion in the red, was balanced initially by a workforce reduction
producing savings of $260.3 million over two years. That goal was met by
cutting 3,722 jobs, largely through attrition and abolishing funded
vacancies. Barely 1,000 people took buyouts of $20,000 despite intense
lobbying.

A Call For More Buyouts

Now, Budget Director Robert Megna is calling for another push to secure
buyouts and reduce hours. A hiring freeze remains in effect but doesn't
cover the legislature, courts, SUNY and other entities not under
Paterson's control. Experts said the steps aren't likely to reduce the
deficit significantly. Tax collections missed projections again last
month.

"You cannot close this year's deficit, let alone those projected for the
next three years, without significantly hitting the workforce," said
E.J. McMahon of the conservative Empire Center for New York State
Policy. The 2010-11 gap is projected to be $4.6 billion, followed by
$13.3 billion in 2011-12.

"New York is like a vehicle running downhill toward the edge of a
chasm," he said. "We should be doing what the other states are doing."

James Parrott of the liberal Fiscal Policy Institute disagreed, saying
layoffs, and even furloughs, of state workers will slow the economic
recovery. The state is the biggest employer in many places so the impact
of job actions would be felt on Long Island
<http://www.newsday.com/topics/Long_Island%2C_NY>  and elsewhere, not
exclusively in Albany.

Promises To Unions

Paterson's hands are tied somewhat in terms of paring the payroll. In
June, he agreed to a two-year ban on layoffs for members of the biggest
unions, the Civil Service <http://www.newsday.com/topics/Civil_Service>
Employees Association and Public Employees Federation, in return for
them not opposing lesser retirement benefits for new hires and
supporting the buyouts.

"The governor has given us a commitment and we do hold him to it," said
CSEA spokesman Stephen Madarasz.

PEF wants the buyouts to be more widely available, saying several
hundred of its members were turned down because their jobs were deemed
essential.

Ten other unions didn't sign the pact with Paterson, so their members
weren't eligible for buyouts. But he is willing to give them a similar
deal. "At least right now, they have a choice," he told Newsday.

Paterson also faces lawmakers who are loath to cut major spending areas.
"If the legislature will not look at education and health care, cutting
the payroll is the only way the governor can reduce spending," said
Robert B. Ward of SUNY's Nelson A. Rockefeller Institute of Government
in Albany. 

Legislative leaders are divided over furloughs and layoffs.

State Senate chief Malcolm Smith (D-St. Albans) believes "we have to
take into consideration all possible options with the exception of tax
increases," said aide Austin Shafran.

But Sen. Dean Skelos <http://www.newsday.com/topics/Dean_Skelos>  of
Rockville Centre <http://www.newsday.com/topics/Rockville_Centre%2C_NY>
, the GOP <http://www.newsday.com/topics/U.S._Republican_Party>  leader,
balked at furloughs and layoffs, saying "that's not necessary because
there's enough stimulus money."

Budget officials countered that all the federal dollars have been
allocated. And Paterson warned that lawmakers couldn't delay much longer
in addressing the growing deficit: "I would suggest that shortly
everybody get their act together . . . or we will pay the penalties
those other states have paid."

 

http://www.newsday.com/news/region-state/furloughs-layoffs-may-be-state-
s-next-steps-1.1481174?print=true

 

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