Well, I have been able to force myself to believe that I was somewhat safe during this economic crisis for as long as I can, but that appears to be ending today. I have put on a happy face and watched as we lost the ability to hire replacements as people quit or were laid off, I happily brought in my own coffee when it disappeared from the office kitchen, I ignored my boss's stoic faces when I and others made jokes about getting fired for making a mistake, and I have pretended not to notice as it got more and more expensive to go to the doctor and fill my prescriptions. I am a state employee here in Virginia. I have a feeling that Governor Kaine's speech today about the inevitable cuts is going to finally directly affect my paycheck, and wanted to share this news with other Virginians in case they had not yet heard about the press conference scheduled for today at 1:30pm on Capitol Square.
From the Washington Post:
RICHMOND, Sept. 8 -- Virginia Gov. Timothy M. Kaine will outline a series of cuts to state agencies Tuesday -- including possible trims to education, public safety and other core services -- to make up for a $1.5 billion budget shortfall.
Kaine (D) also is expected to announce possible job eliminations and a one-day furlough for state employees at a 1:30 news conference on Capitol Square.
The announcement will mark the fourth time since September that Kaine has scaled back the state's forecast for tax and fee revenue, as the state suffers from the worst economic downtown since the 1930s.
(snip)
...the shortfall reflects $1.2 billion from this fiscal year, combined with $300 million carried over from the previous fiscal year.
(snip)
State revenue collections are projected to fall 1.6 percent this year. It is the first time revenue has been projected to decline for two straight years.
From the Roanoke Times:
Kaine is scheduled to announce a series of actions to close a $1.5 billion shortfall in the budget that expires June 30, 2010. The cuts will include an unpaid day off for most state workers, Kaine spokeswoman Lynda Tran confirmed Monday.
The furloughs will not apply to public safety employees.
(snip)
Kaine issued a revised revenue forecast last month and told lawmakers that the budget shortfall will force actions that are "painful to those who rely on public services." He asked state agencies to develop plans for budget cuts ranging from 5 percent to 15 percent and has acknowledged that some of the plans called for layoffs.
From the News Virginian:
Without providing details, Kaine told the Richmond Times-Dispatch yesterday that "essential" employees, such as those at public-safety and emergency agencies, would be exempt.
The state’s largest public-workers group, the Virginia Governmental Employees Association, has been discussing the plan with the Kaine administration.
(snip)
Kaine, who leaves office in January, must close another hole in Virginia’s budget — this time, about $1.5 billion — and today will outline his plan to do so.
Since the economic decline began accelerating in early 2007, Kaine and the General Assembly have pruned state spending by about $6 billion.
Earlier budget-balancing plans have included thousands of layoffs, and an unpaid day off may be a buffer against even deeper cuts in the work force.
(snip)
Within the Kaine administration, officials apparently have been discussing steps under which agencies and employees would have flexibility in reducing worker hours and — by extension — pay.
A provision in the state personnel act known as "Q status" allows the government to trim hours to 32 per week while preserving jobs and benefits, such as insurance and pensions.
That eight-hour reduction could be carried out in a variety of ways — for example, in a single day off, or over several days or a week.
Technically, such time off is not considered a furlough. That’s because under the personnel act, a furlough requires that an employee leave the state payroll. Such a move is accompanied by loss of benefits.
Across the country, cash-strapped states are closing agencies temporarily and suspending workers to offset dramatic declines in tax revenue.
In Maryland, for example, many agencies were closed this past Friday — the first of five furlough days for state workers.
In Colorado, many government offices will be dark today. With the extra-long Labor Day weekend, workers can knock off one of four furlough days.
Of course, this speech will probably not get much coverage due to Obama's speech today about education, but it is definitely going to affect a lot of people I know, and perhaps some you know. Best of luck to all. I will update this after the speech and add any pertinent information.
UPDATE:
Nearly 600 state employees will be laid off and state-supported colleges and universities will have state funding cut up to 15 percent in new budget reductions.
(snip)
The cuts also include a furlough of state employees on the Friday before Memorial Day in 2010. The unpaid day off will not apply to critical personnel such as police and emergency crews.
Well, as a University employee, I am interested to see where this 15% cut will affect. Overall, not as bad as it could have been, for sure. But we'll see what's in store....I don't think this is over by a long shot here in Virginia.