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Actions & Proposals to Balance the FY 2010 Budget: State Employee Actions, Furloughs and Layoffs

(Pre & Post-Enactment)

In July 2009, The National Conference of State Legislatures (NCSL) released its State Budget Update: July 2009. The report shows half of the states are projecting a cumulative shortfall of $144.8 billion for FY 2010, a gap likely to grow as during the course of the fiscal year.  In light of these budget gaps, NCSL has compiled this series of tables that document the measures, both proposed and enacted, that states are taking to close their budget gaps. States are taking a variety of approaches to close their budget gaps and the approaches include both cutting budgets and generating new revenues.
 

Actions & Proposals to Balance the FY 2010 Budget: State Employee Actions, Layoffs and Furloughs
State
State Employee Layoffs
State Employee Furloughs
Alabama
 
The state's personnel board has approved rules that will allow financially troubled agencies to furlough employees up to 24 days a year. However, currently furloughs in Alabama have been blocked by a legislative committee and they have not gone into effect. In the final budget, the governor said he would leave the issue of mandatory furloughs up to the state agency heads.  
Alaska
 
 
Arizona  
The state has laid off 1,000 tax auditors, benefits screeners, and other state employees.
While furloughs have not been implemented at a stateside level, individual departments have responded to budget cuts with furloughs.
Arkansas
 
 
California
27,000 pink slips were issued to teachers in March 2009, and as of July 2009, 17,500 teachers had been laid off so far. 
 
 
Governor has proposed laying off 5,000 state employees mostly working in corrections and human services.
The enacted budget continued the governor’s 2-day per month furlough program. Since the budget was approved, however, the number has been raised to 3 days (the first three Fridays of each month through June 2010). The furlough program affects 189,000 state employees. A judge has halted the furlough program for the 7,500 employees of the State Compensation Insurance Fund. The  judge held the furloughs to be illegal because of a state insurance law that forbids staff cutbacks within the agency. The state now must pay workers back, with interest, for the 16 furlough days they have taken so far.
 
In the University of California system, more than 108.000 full-time equivalent positions, UC faculty and staff, will be required to take from 11 to 26 furlough days – amounting to a salary reduction of 4% to 10% over the 12 months beginning Sept. 30, 2009. The furlough plan is expected to save the UC system $184.1 million in payroll savings.
 
California State University trustees have ordered all full-time faculty to take 24 unpaid furlough days this year. That amounts to about a 10% pay cut. The measure is expected to save the Cal State system $275 million in payroll savings over a 12 month period.
Colorado
Post-enactment of the budget, governor has called for the elimination of up to 266 state employees.
State employees as a result of the final budget reduction measures will see department payrolls reduced by 1.82%. Four furlough days will be required for state employees.
Connecticut
 
Enacted budget furloughs 50,000 employees for 7 days over 2 years.
Delaware
 
Enacted budget contains 5 furlough days for state employees.
Florida
 
 
Georgia
 
Enacted budget requires all state agencies to cut 5% from their spending plans. Some agencies have implemented furloughs to meet the required budget cuts.
 
The Department of Human Services will furlough the agency’s 9,000 workers for 12 days over FY 2010. The DHS furloughs will save $23 million in FY 2010.
 
The state has enacted furloughs for about 25,000 state employees.
 
The Georgia Supreme Court justices and all court staff will take 3 furlough days before the end of calendar year 2009.
Hawaii
Lawmakers eliminated 200 state jobs to ease the deficit.
 
Post-enactment of the budget, the governor has ordered 1,100 layoffs of state workers starting in November 2009 unless the state employees union can reach an agreement with the governor to enact furlough days.
Governor has ordered three days of unpaid furloughs each month for two years for the state's 40,000 employees. The furloughs amount to a pay cut of almost 14%. The governor has also asked the legislative and judicial branches to impose furloughs.  Additionally it has been proposed that agencies not directly overseen by the governor will receive reductions in budget allocations by amounts comparable to a 3 day per month furlough. However, a Circuit Court judge ruled that unilateral furloughs violate collective bargaining agreements. The governor has since ordered 2 furlough days a month for herself, her cabinet, and deputies.
 
The governor and the Hawaii Government Employees Association have agreed to roughly 18 furlough days in FY 2010 and 24 furlough days in FY 2011. The agreement is still subject to a ratification vote by union members.
 
Post-enactment of the budget, the governor has ordered 3-day a month furloughs for non-union state workers.
 
The governor imposed spending restrictions on public schools. The state independent school board, which governs teachers, has called for 17 teacher furlough days to implement the budget cuts.
Idaho
Enacted budget laid off 69 state employees. The Corrections Department has eliminated 44 positions.
 
Proposed layoffs for 100 state employees. The state considered laying off 63 part-time employees who help collect sales tax.
Enacted budget requires agencies to cut personnel costs by 5%. Some agencies have implemented furloughs to cut costs, and so far in FY 2010 3,710 employees have taken unpaid furloughs. In the Corrections Department, all workers must take 4-12 furlough days in FY 2010.
Illinois
Governor has ordered the elimination of 2,600 state jobs. The layoffs would include 1,000 prison workers, 870 human services workers, more than 300 State Police employees, and others from various agencies. On September 28, 2009 a judge issued a preliminary injunction against the layoff plan, putting the layoffs on hold. 
Governor has proposed a mandatory 12-day furlough for state employees, other than those in vital functions. A state employees union has filed a lawsuit challenging the legality of the furloughs.
Indiana
 
 
Iowa
 
 
Kansas
 
 
Kentucky
 
 
Louisiana
Post-enactment of the budget, various state agencies plan to lay off 515 workers because of budget problems.
 
Governor has proposed eliminating 1,400 jobs, about 300 of which are currently filled.
 
House lawmakers have proposed eliminating 3,400 state government jobs.
 
Maine
Under the final budget, approximately 255 jobs will be eliminated. Many will be eliminated via attrition or eliminating vacant positions.
Enacted budget shuts down non-essential government services and furloughs those employees for 20 days spread out over the next 2 years.
Maryland
Governor has eliminated more than 2,700 mostly vacant government positions.
 
Post-enactment of the budget, the Board of Public Works has approved the elimination of 364 positions, over 200 of which were filled.  
Post-enactment of the budget, the Board of Public Works has approved requiring all non-essential state workers (about 70,000 employees) to take anywhere from 3 to 10 furlough days, depending on their salary.
Massachusetts
Enacted budget eliminates 750 state positions.

Post-enactment of the budge, the governor has asked state employees unions to agree to concessions to close the budget gap. The governor indicated that without concessions up to 2,000 state jobs could be eliminated.
Post-enactment of the budget, the governor asked executive branch managers to take an unpaid furlough of up to nine days.
Michigan
The legislative appropriations committees have approved laying off about 300 state employees. 100 of the layoffs will be from the state police force.
 
Minnesota
 
 
Mississippi
 
 
Missouri  
Governor has proposed cutting 1,329 state jobs.
 
Montana
 
 
Nebraska
 
 
Nevada
 
Enacted budget requires state workers to take one furlough day per month. Teachers and higher education employees will not have to take furlough days, but instead are subject to a 4% pay cut. Savings of $333 million are expected.
New Hampshire
Enacted budget calls for 200 layoffs.
 
Post-enactment of the budget, the governor has announced that 250 workers will lose their jobs and another 60 will be demoted now that the state’s largest state employee union has rejected a contract that included 19 furlough days.
 
Enacted budget includes 18 days of unpaid furloughs for most unionized state employees. The state employees union currently opposes the furloughs but the union is negotiating with the governor. The largest employees union rejected a tentative agreement with the governor’s administration that would have called for 19 unpaid days over two years, including 12 from government shutdowns. Workers would have been able to choose when to take the other seven days.
New Jersey
Under the enacted deal with the state employees union if any governor imposes layoffs before 2011 every worker will immediately receive a delayed 3.5% pay raise.
Enacted budget requires 10 unpaid furlough days for state workers. Furloughed workers will get up to 7 days paid leave in later fiscal years.
New Mexico
 
 
New York
Governor has proposed laying off 8,900 of the state's 200,000 employees if state's employee unions do not agree to the proposed furloughs and forgo a scheduled pay raise.
Governor has proposed 5 days of unpaid furloughs for state employees.
North Carolina
Under the enacted budget about 725 state employees will lose their jobs. Additionally, another 1,318 vacant positions have been eliminated.
 
North Dakota
 
 
Ohio
Enacted budget calls for about 3,000 layoffs.
Enacted budget authorizes the Dept. of Administrative services to impose 10 mandatory furlough days for state employees.
 
The Ohio Civil Services Employee Association ratified a contract that includes 10 days of unpaid furloughs for all employees in its union.
Oklahoma
 
The 470 employees at the Oklahoma Corporation Commission will be furloughed for 12 days, saving an estimated $1.2 million.
Oregon
Lawmakers have proposed cutting 1,700 state positions. The layoffs include positions in education, human services, and public safety.
Under the enacted budget state employees will take from 10-14 furlough days over FY 2010 and FY 2011. The contract was ratified by the state employees’ unions. The state will expect to save $2 million to $2.5 million in payroll costs each furlough day. Corrections workers are also subject to the furloughs, but they will take floating furlough days instead of taking them on the designated furlough days.
 
Oregon university employees will take between 8 and 16 mandatory furlough days over FY 2010 and FY 2011.
Pennsylvania
The proposed FY 2010 budget includes a reduction of 2,995 positions in the Pennsylvania's current authorized complement.
 
Puerto Rico
In late September 2009, the governor announced a second round of layoffs. During fall 2009, 16,970 layoffs will occur. Those affected will have their health insurance paid for 6 months, and are eligible for up to $5,000 per person for retraining and $2,500 for relocation if they find employment elsewhere.
 
Nearly 8,000 government workers were laid off on May 29, 2009. The Governor indicated that this was just a first round of layoffs. Most of the 8,000 employees were temporary clerical workers in the Education, Treasury, and Health Departments. Those affected will receive health insurance for 6 months.
 
Governor has proposed reducing the state workforce by 30,000 positions (14%). 
 
Rhode Island
The Governor has proposed laying off 1,000 state workers after his furlough plan was stayed by the state supreme court. However, the governor indicated a preference to negotiate with the state employees union over laying off employees.
Post-enactment of the budget, the governor and several labor unions have reached an agreement to save the state in workforce costs. Under the agreement, all state workers would take 8 unpaid days of work in calendar year 2009, 4 unpaid days in calendar year 2010. In addition, there would be a 6-month delay of a scheduled 2010 pay raise, there would be no more threats of furloughs, shutdown days, or layoffs until June 30, 2011, and state employees would be given the opportunity to recoup some of their lost pay or take bonus vacation days when they leave state service. Several state employees unions have tentatively accepted the deal. The governor has indicated that employees from the union(s) that do not accept the deal will be subject to layoffs. The largest employees union accepted the deal and 6 other unions are planning votes on the deal. As of 10/7/09 unions representing 7,000 of the state’s 11,000-plus unionized workers have ratified the deal.
 
Post enactment of the budget the governor has announced that state employees will be furloughed 12 days through the remainder of FY 2010. The furlough days will amount to around a 4.6% pay cut. Essential state services will not be subject to the furlough days but will see some reductions. Update 9/3/09: The State Supreme Court issued injunction against this plan.
South Carolina
 
Enacted budget allows state agencies to require up to 10 furlough days from employees. 
 
10 day furloughs have been enacted for House full-time staffers.
South Dakota
 
 
Tennessee
Governor has proposed eliminating 80 filled positions.
Enacted budget calls for the elimination of 1400 positions, including 717 layoffs.
 
Texas
 
 
U. S. Virgin Islands
 
 
Utah
 
Failed: Lawmakers proposed implementing 11 days of optional furloughs for state employees and up to 5 days for public education employees. However this measure was not adopted.
Vermont
Post-enactment of the budget, the governor has proposed the layoff of 200-300 state employees if the state employees union and the governor’s administration cannot agree on about $7.5 million in workforce savings.
Post-enactment of the budget, the governor has proposed that state employees take 2 furlough days, forfeit their health wellness program, and give up tuition reimbursement, as a part of the $7.5 million in workforce savings that the governor has called for.
 
Post-enactment of the budget, the state employee’s union has offered to forfeit pay for 4 previously paid holidays, take 4 furlough days, give up a preventative health benefit, and give up tuition reimbursement in order to obtain the $7.5 million in work force savings that the governor has called for. However, the governor has rejected the union’s proposal and indicated that he would proceed with layoffs. The governor indicated that his administration could not offer the guarantee sought by the union of no layoffs in the next 2 fiscal years.
 
Virginia
Post-enactment of the budget, the Governor has ordered the elimination of 929 state jobs, including 593 layoffs.
 
Post-enactment of the budget, the Governor has ordered laying off about 200 temporary and hourly wage employees who supplement the state’s full-time work force. The wage-worker reductions are anticipated to save $2.3 million.
Post-enactment of the budget, the Governor has ordered a furlough of state employees on the Friday before Memorial Day 2010. The unpaid day off will not apply to critical personnel such as police and emergency crews.
Washington
Enacted budget eliminates about 7,000 jobs in state government agencies, universities, and local public schools.
 
Both the House and Senate are cutting their full-time staffs by 5%.
 
West Virginia  
 
 
Wisconsin
Enacted budget could result in 1,110 state employees being laid-off.
Enacted budget furloughs state workers 8 days-a-year for the next two years.
Legislative Assembly staff will be furloughed 16 days over the next two years. Legislators have been asked to return eight days of pay during each of the next two fiscal years.
Wyoming
 
 
District of Columbia
160 D.C. child care workers are being laid off as at least 20 child care centers are being closed due to budget issues.
 
Key:
(N/A) = Not applicable
 
Source: NCSL survey of state legislative fiscal offices: June and November 2008. Various media and government outlets: January through October 2009.
 
This table is intended to provide general information and does not necessarily address all aspects of this topic. The table reflects in summary form information gathered from media sources and NCSL surveys of legislative fiscal offices. Please contact us at budget.revenue.updates@ncsl.org if you know of any additional information that should be reflected here or any errors that should be corrected.

 
 
 
This report has been updated under a partnership project of NCSL’s Fiscal Affairs Program in Denver, Colorado and the Pew Center on the States, based in Washington, D.C.
 
 
 
 
 

 

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