States Look to Furlough Government Workers
State Governments May Follow Example Set by California, Maryland
Mar 9, 2009
Furloughs are gaining popularity among states looking to meet budget shortfalls, with New Jersey, Ohio and Georgia following the example set by California and Maryland. State governments are hoping furloughs and hiring freezes will eliminate the need to lay off government employees.
California Furloughs Change Slightly
In California, furloughs initially took the shape of closing all state offices every other Friday. In March, the state changed that plan to mandate that government employees take off two days a month. According to the MSNBC report, “California's furlough Fridays coming to an end” by Ryan Foran of KSBY-TV, workers will be able to choose which two days to take without pay. They must receive supervisor approval but the rolling furlough days will mean state offices will be open on Friday again. The furloughs are expected to run through June 2010 and they will save California an estimated $1.3 billion, Foran reported.
Maryland Furloughs Based on Pay Scale
Maryland’s furloughs will save much less than California’s plan. In the Washington Times article, “Maryland furloughs to save $34 million,” Timothy Warren reported the state of Maryland will save roughly $34 million by requiring state employees to take at least two days unpaid leave prior to June 30.
“Those affected will lose at least two days' pay, depending on their yearly income,” Warren wrote. “Employees making more than $40,000 will be required to take more furlough days. Employees earning less will lose two days' pay.” Maryland’s furlough effects 67,000 government workers, Warren said.
In Maryland, state lawmakers greeted the news with promises of solidarity with government employees. Gov. Martin O'Malley, Lt. Gov. Anthony Brown, the Department of Legislative Services and General Assembly were likely to join government workers and take time without pay.
New Jersey Governor to Fight for Furloughs
In New Jersey, Gov. Jon S. Corzine will have a fight on his hands trying to implement furloughs. Faced with a $7 billion budget shortfall, Corzine sees furloughs and freezes on salaries as one way to address the budget crisis, according to Associated Press writer Angela Delli Santi in the Newsday article, “NJ gov says he's prepared to lay off state workers.” But Corzine may face opposition from the Communications Workers of America. CWA state director Hetty Rosenstein questions Corzine’s authority to cut workers pay by using furloughs and opposes wage freezes, which would require renegotiating the labor contract. For his part, Corzine has said if the furloughs and salary freezes aren’t implemented, he will be forced to lay off as many as 7,000 government employees to make ends meet.
Georgia Furloughs Prison Chaplains
Georgia has already been eliminating positions in addition to using furloughs to make ends meet. The state has eliminated five chaplain positions and furloughed a third of its prison chaplains, according to Atlanta Journal- Constitution reporter Christopher Quinn in the article, “Georgia prison system laying off chaplains.” Quinn reported there are now 30 chaplains providing services for 55,000 inmates and prison employees in 33 prisons.
Furloughs in Georgia go beyond the Georgia Department of Corrections to include 25,000 government workers, according to CNNMoney.com staff writer Ben Rooney. In the article, “Georgia furloughs 25,000 workers,” Rooney reported furloughs have been going on for six months. Most furloughs were limited to one day off per month, although some agencies had more days, Chris Schrimph, a spokesman for Georgia Gov. Sonny Perdue, told Rooney.
Utah, Ohio Consider Furloughs
While furloughs are ongoing in California, Maryland and Georgia, other states are considering climbing aboard the bandwagon. The Associated Press has reported the Utah Public Employees Association would prefer furlough days to layoffs to deal with the state’s $1 billion budget shortfall. Ohio’s state employee union members may have similar feelings: Ohio television station NBC4 has reported in February that Ohio’s largest state employee union may be open to taking as many as 10 days of furlough.
Utah and Ohio are among the many states that are considering using furloughs or have already begun to do so. According to Rooney, the Center on Budget and Policy Priorities has said at least 46 states are facing a total of $144.6 billion in budget shortfalls for this fiscal year or next. Rooney reports the CBPP has said at least 24 states and the District of Columbia have instituted hiring freezes and 10 have announced or proposed layoffs. Others are lowering salaries for state employees or delaying wage increases.
New York Mayor Says Furloughs Unlikely
New York City is one place where furloughs may be unlikely, according to the March 6, 2009, Reuters article, “NYC mayor: Worker furloughs to cut costs unlikely,” by Joan Gralla. NY Mayor Michael Bloomberg said opposition from unions is likely to be too strong to allow furloughs instead of layoffs. Bloomberg has said the city may be facing large layoffs, and “as many as 23,000 city workers, including 15,000 teachers, would have to get pink slips to help close a daunting deficit,” Gralla said.
Several states are turning to furloughs to deal with budget shortfalls without laying off government workers. Following the examples of California, Maryland and Georgia, states such as Ohio, Utah and New Jersey may be next to place workers on furlough. New Jersey and New York City may rely on layoffs instead of furloughs to meet budget shortfalls due to opposition to furloughs. For more about furloughs, read Businesses Look to Furloughs to Cut Costs and How to Reduce Stress on Furlough Days.
Resources
Delli Santi, Angela. “NJ gov says he's prepared to lay off state workers,” Newsday, March 5, 2009.
Gralla, Joan. “NYC mayor: Worker furloughs to cut costs unlikely,” Reuters.com, March 6, 2009.
Rooney, Ben. “Georgia furloughs 25,000 workers,” CNNMoney.com, Feb. 24, 2009.
Quinn, Christopher. “Georgia prison system laying off chaplains,” Atlanta Journal-Constitution. Jan. 29, 2009.
Warren, Timoty. “Maryland furloughs to save $34 million,” Washington Times, Dec. 17, 2008.
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