March 20, 2009

DEFICIT GROWS TO $9 BILLION; SENATE BUDGET DELAYED; STAY TUNED FOR CALLS TO ACTION; GOLDMARK CALLS FOR EARLY RETIREMENT PACKAGE

The latest state revenue forecast released Thursday shows that the state budget deficit has grown to $9 billion, forcing the state Senate to delay the roll-out of its spending plan until later next week.

We believe deep cuts will be proposed. We’re preparing a number of calls to action once we get the details. Please check back here and on our website at www.wfse.org for those now-critical calls to action.

In terms of actual spending cuts, the $9 billion deficit translates to cuts ranging from $4.2 billion to $4.5 billion, according to top legislators quoted in the media. That level of cuts comes after using $3 billion in federal economic stimulus money, already enacted savings and funds transferred from other parts of the budget.

The Senate has delayed unveiling its budget plan from Monday until sometime later next week, we presume, to revise their plan downward.

We’re hearing rumors of what some of those devastating cuts may be. Once we get firm information, we will get calls to action out.

The Herald newspaper of Everett reports that Democratic lawmakers are drawing up a list of cuts that would cut 10,000 public workers—4,000 teachers, 4,000 in higher education (although it’s not clear how many would be faculty or classified staff) and 2,000 in General Government.

And one prominent elected official is calling on the Legislature and the governor to consider an early retirement package for state employees. That would blunt the impact of any layoffs by saving jobs through attrition.

State Public Lands Commissioner Peter Goldmark made his plea in a March 16 letter to legislators and Gov. Gregoire. Goldmark heads the state Department of Natural Resources.

“As a state, we are looking at staff reductions of 10 to 20 percent,” Goldmark wrote. “Because of seniority in layoffs, the employees who lose their jobs will most likely be the most junior. There is no benefit to the state when younger employees are laid off only to be added to the unemployment rolls. Seasoned public servants, who have devoted a career to the work of the state, could be supported in a manner that allows early retirement. At the end of 2014, 41 percent of DNR’s workforce will be eligible for early retirement. Imagine the eventual cost to recruit, hire and train a replacement workforce in five to 10 years. We need a succession plan.”

Find updated and needed calls to action on WFSE.org > Call NOW! These calls to action are evolving, so check daily.

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