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Bredesen says layoffs coming for state employees
State employees, already threatened with no pay raises, now have to fear for their jobs.
Gov. Phil Bredesen said Wednesday he would be instituting layoffs of an undisclosed number of state employees as part of substantial efforts to cut money from the state’s budget.
“You can’t get here from there, there from here in the budget without doing some layoffs,” Bredesen said in a speech Wednesday to the Nashville Area Chamber of Commerce.
Bredesen said that the amount he would have to cut from next year’s budget has increased by $150 million within the last week, hiking the overall amount to $550 million-$650 million that will have to be trimmed.
The layoffs of state employees are the latest blow for state government as the economic mood gets even darker and Tennesseans spend less and businesses earn less, causing slumping tax revenues.
“I think we can do it in a way that’s not terribly painful for a lot of people,” Bredesen said of the layoffs. “But I’m just going to have to step up to that issue and deal with it.”
Pay raises for state employees, originally proposed at 2 percent, are already off the table, Bredesen said, saying he wouldn’t “lay somebody off and give somebody else a pay raise in this environment.”
Bredesen said he did not have a definite number on how many would be laid off, only calling it a “serious change as to the number of people who are employed by the state.”
The Tennessee State Employees Association called on Bredesen to use the state’s $750 million rainy day fund “to shore up the ship of state,” said executive director Jim Tucker.
“It makes no since to layoff trained and dedicated employees, just to hire them back in a year or two when the economy strengthens,” Tucker said in a statement.
The TSEA said the future cost of replacing old employees and training new ones is “far greater than the funds needed to shore up our budget during his storm.”
Tapping into the rainy day fund is not currently planned, the governor said, arguing that it is too early in the economic downturn to use the funds.
Bredesen said the layoffs could touch all departments, but particularly would come from state agencies that are funded primarily with state and not federal dollars.
Agencies funded with more than 60 percent of their budgets from state dollars include the Departments of Agriculture, Correction, Economic and Community Development, Revenue and Safety.
“The trick is to be fair to the employees and also not damage the ability of these departments to do their jobs,” Bredesen said. “And I think we can do that. I need a little time to work at this.”
As a result of the layoffs, Bredesen’s budget cuts will be delayed by one week. He’ll tentatively present them to a joint session of the General Assembly on Monday, May 12.
The only budget item out of consideration for cutting is pre-K through grade 12 education, Bredesen said.
The planned layoffs are in addition to what could be 160 Department of Children’s Services jobs that may be cut as a result of losing $73 million in federal funding for children’s case managers.
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Hope you learned to just spend what you have rather then what you think you are going to get.You are consistant, you shafted us in your second term as Mayor and you are giveing us a repeat performance.We are not your private piggy bank. Lay off the Bunker instead of taxpayers. Better yet get rid of enough illegals to balance the budget. That wouldn't be hard to do.
Bredeson for mayor and gov! And get rid of idgaf!
Estimating the avg. state employee salary is around $36K, it will take about 550 employees to cover the costs of the bunker.
Laying off employees will only solve the short term problem to take on the long term problem of the stability of state retirement funds. My study of the situation reveals that a government that participates in the state plan must come up with about 4.75 percent more money every year or the retirement fund will not be stable. This also assumes that inflation is zero. State employees are somewhat underpaid and theoretically this is offset somewhat by security of the job. If Bredesen lays off anyone, that delusion will be destroyed for a long time. When Bredesen calls for layoffs it is like begging for more help to instigate an income tax or other taxes. Next year there will be more government workers than factory workers in Tennessee.
Peoples jobs and lives in jeopardy and we could save 20 million dollars by eliminating the bunker, but no mention of that?
State employees are already terribly underpaid. Their portion of insurance premiums takes a nice "chunk" out of their paychecks. I just don't understand how building a bunker is more beneficial than a person's ability to feed their family and have a roof over their heads. It's a sad STATE of affairs!!
Phil, we voted for you each time you asked us to, and we donated money to your campaign every time you called, but you've gone off the deep end on this one! Fill in the hole in "our" front yard, cancel your contracts w/your buddies, and apply those funds where they're needed.... your constituients need it the most! It is highly immoral to continue down the pathway you're presently on now. Please, I beg of you, please stop this insanity. Lives are depending upon you this time.
This city and state are run by a sack of wet mice.
I'm sure the bunker is a drop in the bucket to what's needed here. They could stop construction, and it just wouldn't make much difference. It's probably useless to debate that one.Regarding idgaf's statement "Hope you learned to just spend what you have rather then what you think you are going to get."The whole State budget is based on what they "think" they're going to get. You can't plan for future programs and expenses without some estimation of what the revenue WILL be . . . the problem occurs when the economy doesn't behave as projected, and the State doesn't get the revenue it expected. Then cuts are made.So, the budget process begins with a revenue projection, and then the expected revenues are allocated among the many State departments and programs.Just wanted to clarify here.
FOR IMMEDIATE RELEASE:CONTACT: Lisa Leeds for Tennessee House 58 Voice Phone Number: (615) 275-5279Email Address: info@lisaleeds2008.com Website URL: www.lisaleeds2008.comLisa Leeds, Libertarian Candidate for Tennessee House 58, calls for an end to the State’s Spending Spree Nashville, Tennessee, May 01, 2008: Lisa Leeds the Libertarian candidate for Tennessee House District 58 believes it is time end the annual budget charade and start taking real decisive action when it comes to state spending. The 2008 Tennessee Pork Report documents $260 million in waste, fraud and abuse of tax dollars. The 2007/2008 Tennessee budget was $27.5 billion. In January Governor Phil Bredesen proposed a budget of $27.88 billion budget, an increase of $380. Then last week Governor Bredesen proposed cutting $400 million to $500 million from his proposed budget, with increases of $380 million from last year. This means actual cuts will be much smaller. At the maximum cut levels proposed by Governor Bredesen, Tennessee will only see about $120 million reduction in state spending. Given the Legislatures appetite for pork, it is highly unlikely that the governor will get the maximum number of budget cuts he wants. More than likely spending will slightly increase from last year’s budget. It took 196 years (1796 - 1992) for the Tennessee budget to reach $10 billion. The legislature managed to double that amount in 10 years (1992 - 2002). Naturally, Bredesen’s budget cuts do not address any of the state’s pork projects. Proposed cuts are really just reduction in the proposed growth of state government, but do not represent actual cuts in spending. For real spending cuts the general size of government should be scaled back to its constructional defined role, eliminating all pork spending in the process. Many of the functions currently being done by government, should be transferred to the private sector, where they can be done better and at less cost. For additional information on Lisa Leeds Libertarian Candidacy for Tennessee House District 58, short statements, or to schedule a full interview please contact Lisa Leeds for Tennessee House 58 at (615) 275-5279 or visit www.lisaleeds2008.com.
There is a bill in the General Assembly that could mitigate a lot of the budget crisis. SB3158/HB3182, the Food and Business Tax Fairness Act, would generate $20M to $150M in additional revenue by closing tax loopholes that benefit large multistate businesses while it cuts the food tax by 1% and helps local businesses compete more fairly with big chains. See:http://www.fairtaxation.org/foodbiz/index.php
Tardis, as our economics profs told us, every little bit adds up to a whole lot! Stop all the pet projects, bunkers, and so on.... and you could keep the state jobs that are necessary for constituents' needs. State-funded healthcare is way more important that a bunker any day. And while you think the dollars are not significant, the rest of the state voters think that money is significant... to our very existence right now. It's the difference between having paved roads and not...getting your bridge fixed/maintenanced or letting it fall into the river. Ok, the last one was a bit extreme, but these services require funding.
WW, who's the sponsor of that? It sounds great.
can't bredeson get the layed off workers some comp tickets to titan pre-season games? that ought to placate them.
Girlie, in the House it's sponsored by Craig Fitzhugh, chair of the Finance Committee and in the Senate by Tim Burchett, Deputy Speaker.
I knew this would happen. Bredesen was touted as an excellent bidnessman, a financial genius, a great steward for our State. Well, that myth is shattered, isn't it?Instead, we have an over-spending problem. Where was Bredesen's economic intellect vacationing when he launched this bunker project? Could he not see this coming? Does he not know how to fix this? A political black eye, a real stinger. He won't forget this one for a long, long time. A real businessman who faces shortfalls in revenues must make some tough decisions. So, Phil, start laying off people. Start with the highest-paid people, the most expendable; how about your close circle of personal political hacks? Your closest friends and daily advisors? Out the door with them. 180K per year. You know who.That won't happen, unfortunately. We'll have Sundquist 2 here, punishing the lowest-paid and hardest working employees, then he'll start closing the parks and recreation services, just to make the sting felt amongst the citizens...and then he'll start planting hints for an Income Tax. After all, he is a Democrat.Not that there's no fat in the State budget that needs some cutting. But the fat that needs cutting is politically protected, and Bredesen won't touch that. At least this error will continue to tarnish Bredesen's political future. We might get lucky and not see him trying to run for another office anytime soon. Unless that office is in, say, New York?