Tuesday, May 11, 2010

Facing $9.2B budget deficit, Gov. Paterson considers furloughing 100,000 state workers

Facing $9.2B budget deficit, Gov. Paterson considers furloughing 100,000 state workers


Govenor David Paterson is faced with a $9.2 billion budget deficit.

ALBANY - Lawmakers were faced Monday with a dire decision - furlough 100,000 state workers or shut down the government.

Gov. Paterson, who is trying to close a $9.2 billion budget deficit, has included a provision for a one-day-a-week furlough in the latest emergency budget extender.

Legislative leaders concede they'll reluctantly approve the furoloughs - rather than shut state business down completely.

In radio interviews, Paterson said the public employees unions have "repeatedly ignored the fact that there's a recession."

Even union-funded commercials fail to acknowledge the state is grappling with a frightening fiscal crisis, he said.

"It doesn't seem to matter to them that 48 of the 50 states are in deficit, that New York is teetering on the verge of insolvency," Paterson said on Buffalo's WBEN-AM.

"They just want to frollick along and do commercials and have rallies as if there isn't a method or a means to an end that will get us out of this mess."

The unions are planning statewide rallies at noon Monday to put pressure on lawmakers.

Paterson said the furloughs would kick in on May 17 and continue until there is a permanent budget - unless the unions agree to $250 million in concessions.

State troopers, police, prison guards, nurses and other emergency service workers would be exempt.

Noting that state workers are in the last year of a contract negotiated that granted them 13% raises over four years, Paterson said, "I don't think there's too many people on this planet whose pay increased by 13% over the last four years."

Paterson said the unions have refused to consider foregoing their 4% raises for this year or agree to a one-week lag in pay.

Should the Legislature not pass the emergency extender bill today, government would shut down, Paterson said.

"There will be doom and gloom," he said. "We won't have any money to pay for services and the government will effectively shut down."

Earlier, Danny Donohue, president of the state Civil Service Employees Association, blasted the "irresponsible rhetoric thrown at state workers about the state's budget problems - and vowed to fight the furloughs.

"We will continue to do whatever it takes to protect the interest of CSEA members and the services we provide for the people of New York," Donohue wrote in a open letter.
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NY lawmakers approve putting 100,000 workers on furlough one day per week

By Delen Goldberg / The Post-Standard

May 10, 2010, 7:49PM
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Dan Jermalovic of Syracuse holds a sign Monday as New York State workers demonstrate in front of the State Office Building against Gov. David Paterson's plan to furlough them one day per week.
Story written by Delen Goldberg and Tim Knauss.

Syracuse, NY - Democrats in control of the state Legislature today declared furloughing state government workers is illegal, but voted to do that anyway.
Starting Monday, about 100,000 state workers across New York will be forced to work four-day weeks and forgo 20 percent of their pay.
“It was the lesser of two evils,” said Sen. Darrel Aubertine, D-Cape Vincent. “I’m not supportive of furloughs, but given the choice, it was better than shutting down state government.”
Gov. David Paterson included the furloughs in a budget extender bill that lawmakers needed to pass to keep state government running. It was the sixth budget extender the Legislature has approved since failing to pass a budget April 1.
Central New York lawmakers followed party lines when voting on the bill. Senate and Assembly Democrats voted for it; Republicans voted against it.
“If government shut down for a day or two, maybe the leaders would get the job done” crafting a budget, said Sen. John DeFrancisco, R-Syracuse.
The furloughs could affect a few thousand workers in Central New York, local union leaders said.
More than 150 state workers spent their lunch breaks protesting today in front of the Hughes State Office Building in Syracuse, marching and shouting “cut the waste, not the workers.”

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New York State workers demonstrate today in front of the State Office Building in Syracuse against Gov. David Paterson's plan to furlough them one day per week.

Similar lunchtime demonstrations went off around the state.
Marie Hebdon, an engineering technician at the Department of Transportation in Syracuse, said she plans to give up cable TV, telephone and Internet service to deal with the pay cut. Hebdon earned $29,556 in 2009, according to state records.
She said there are better ways for the state to cut expenses, such as eliminating lucrative fees paid to private consultants. The more the state reduces its work force, the more it hires costly private companies for projects, she said.
“Consultants get paid way more than regular employees,” Hebdon said.
Union members said furloughs — which Gov. David Paterson estimates will save $30 million a week — won’t make a dent in the state’s $9.2 billion budget deficit.
“There are other ways of achieving the governor’s budgetary goals than furloughing,” Hebdon said. “Furloughing is a Band-Aid solution.”
Paterson has said he resorted to furloughs because the unions rejected other money-saving proposals, such as suspending their 4-percent raises or accepting a one-week lag in pay, to be cashed in at retirement. Paterson seeks $250 million in concessions from unions.
Anne Aaserud, who works in the DOT purchasing department, said state leaders should cut pork projects and the salaries of highly paid management employees rather than targeting the rank-and-file.“There are plenty of other places to cut,” she said.Aaserud earns nearly $52,000 after 29 years of service. Her husband, William, who has spent 32 years at DOT, also will be hit by the furlough, she said.
The work reductions will further depress the economy by forcing workers to stop spending, said union officials from Civil Service Employees Association and Public Employees Federation, which sponsored the rally.
About 2,800 members of PEF would be affected by furloughs in the six-county area around Syracuse, said Don Kehoskie, the union’s regional coordinator. At least 1,000 local members of CSEA would be affected, estimated Mark Kotzin, speaking for the union.
Colleen Wheaton, regional president for CSEA, said unions will challenge the furloughs, which she said are illegal. If the unions go to court, Wheaton predicted employees will be awarded back pay with interest.
“This is going to cost our taxpayers money,” she said.
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ALBANY, N.Y. (AP) - New York's powerful public worker unions took the state to court Tuesday in what could become a costly and lengthy battle to stop one-day-a-week furloughs for state employees.

The Public Employees Federation and the Civil Service Employees Association unions, representing hundreds of thousands of white- and blue-collar workers, are seeking a temporary restraining order to block the cost-saving measure approved by the Legislature Monday night.

That's the first step in the court challenge to furloughs for about 100,000 state workers, which the union argues would violate their labor contracts. Many lawmakers who reluctantly authorized the furloughs said in floor speeches that the unions will likely win in court.

Other states, including California, have resorted to furloughs and faced lawsuits. In some cases, courts overturned them and required states to repay workers for the lost time. But the terms of furloughs and labor agreements differ state-to-state.

Gov. David Paterson said the furloughs are needed because the unions have rejected every other call to sacrifice and help the state out of its fiscal crisis, including suspending their annual raises of 4 to 7 percent. Paterson has so far avoided layoffs as part of an agreement with unions on a lower cost pension plan for future hires.

The independent Citizens Budget Commission said the "savings are urgently needed and labor is one of the right areas of the budget in which to seek them." It said the work force is too big to afford, and a pay freeze is needed.

"Labor representatives must begin to be partners in the solution rather than courtroom adversaries," said Carol Kellermann, the commission's president. "There are alternatives to forced furloughs that have the benefit of providing significant savings for more than one year."

She said Albany has for too long made promises to unions and other special interests that its taxpayers can't afford. Unions representing public workers are among the highest spending lobbies and campaign contributors in Albany.

"CSEA will doing everything we can to protect the rights of our members and the services they provide to the people of New York," said the union's president, Danny Donohue. "Governor David Paterson's plan is misguided and will create chaos and crisis."

Public Employees Federation President Ken Brynien called the furloughs illegal.

Paterson said furloughs are unavoidable given the $9.2 billion deficit the state must close in a budget that is already more than a month late.

"The budget that I have proposed reflects the principle of shared sacrifice," Paterson said. "It includes tough, but necessary cuts across every single area of state spending. At a time of unprecedented fiscal crisis, every single organization and individual that relies upon state funding needs to make sacrifices. Unfortunately, however, all we've heard so far from the leadership of our state's public employee unions are expletives and excuses."

Furloughs would mean a 20 percent pay cut, likely until a budget is negotiated by the governor and Legislature. The average state worker is paid $64,164 in the work force of nearly 300,000. About 23,000 make more than $100,000. Paterson said furloughs will save $30 million a week.

How local Representatives voted

Representative Party Vote
State Senate
Sen. Dave Valesky (D) Yes
Sen. John DeFrancisco (R) No
Sen. Darrel Aubertine (D) Yes
State Assembly
Bill Magnarelli (D) Yes
Al Stirpe (D) Yes
Joan Christensen (D) Yes
Will Barclay (R) No

Statement from Governor Paterson:

"I commend the Legislature for approving my emergency appropriations legislation, which will ensure the continued orderly operation of government and achieve necessary workforce savings through State employee furloughs. Over the next week, I will work closely with my agency commissioners to expeditiously implement these furloughs in a manner that both reduces taxpayer costs and minimizes any potential impact on public services.

"The budget that I have proposed reflects the principle of shared sacrifice. It includes tough but necessary cuts across every single area of State spending. At a time of unprecedented fiscal crisis, every single organization and individual that relies upon State funding needs to make sacrifices. Unfortunately, however, all we've heard so far from the leadership of our State's public employee unions are expletives and excuses.

"I recognize that these furloughs represent a difficult sacrifice for many of the State's public employees. That sacrifice is only necessary because their union leadership has rejected all other reasonable attempts at compromise. One such proposal that I put forward is to eliminate a scheduled 4-to-7 percent general salary increase for State employees, which I believe is a fair concession at a time when more than a quarter of million New Yorkers in the private sector have lost their jobs and other local public employee unions across the State are reopening their contracts. These furloughs were a last resort.

"In the days ahead, the special interests will use every tool at their disposal to try and prevent me from doing what is necessary to put our State's fiscal house in order. My only objective is to help New York turn the corner on this fiscal crisis and that goal guides every decision I make as Governor. And I will continue to make the difficult decisions needed to close our $9.2 billion deficit and put taxpayers first. The sooner our State is on a path to economic recovery, the better for every New Yorker."

Statement from PEF President Ken Brynien on Furloughs

"I am deeply disappointed the New York State Legislature has voted to authorize the illegal furlough of hardworking state employees," said PEF President Kenneth Brynien.

"The governor continues to insist that breaking contracts negotiated in good faith are the only way he can generate savings from the state work force. He knows this is untrue. PEF has provided the governor with alternative budget solutions that would avoid such hardships.

"PEF will be immediately filing for a temporary restraining order to stop the illegal furlough plan and protect our members from irreparable damage the loss of income will cause," Brynien said.

PEF is the state's second-largest state employee-union, representing 58,000 professional, technical and scientific employees.

How local state lawmakers will vote on spending bill, furloughs

Do you agree with Gov. Paterson's plan to furlough state workers one day a week until the new state budget is in place? [more]
Albany (WSYR-TV) - Thousands of New York State employees held protests across the state today, rallying against the legislature's planned vote on an emergency spending bill.

If passed, about 100,000 workers would have to take one unpaid day off from work each week until a budget deal is reached.

Local lawmakers are split among party lines. State Senator John DeFrancisco, a Republican, says he will vote no to the budget extender bill, which has a provision that requires state workers take one furlough day each week until a full state budget is passed.

Paterson says he is resorting to the one-day furloughs after unions refused his earlier requests to suspend their 4-percent pay raises as well as other concessions.

Democratic State Senator Dave Valesky says he will vote yes, as well as Democratic Assemblywoman Joan Christensen and Democratic Assemblyman Al Stirpe.

Governor Paterson says he'll keep the forced furloughs in place every week until the legislature approves a state budget, but union workers argue the move is illegal.

The Civil Service Employees Association and Public Employees Federation organized simultaneous protests in Albany; Buffalo; Elmira; Hornell, Steuben County; Rochester; Binghamton; Utica; Poughkeepsie; Manhattan; the Bronx; Brooklyn; Long Island; and Watertown.

Paterson wants $250 million in concessions from unions to close a $9 billion budget deficit.

Paterson says he will stop the furloughs, scheduled to begin the week of May 17, if unions agree to other concessions.

NewsChannel 9's Kim Brown is in the State Capitol and will have live coverage beginning on NewsChannel 9 at 5:00.
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Governor sends budget bill and furlough plan to legislature
May 7

Albany (WSYR-TV) - Governor Paterson has sent his emergency budget bill to the legislature and, as he promised, it includes a plan to force most state employees to take one day of furlough each week. The emergency bill is meant to cover state expenses until the legislature can pass a budget for the whole year.

The 30-page bill, called Program Bill #250, is most notable for including a furlough program the Governor first proposed in late April. Under the program, employees of the executive branch would be required to reduce their work week by one day, and cut their salary accordingly. Paterson has previously said the furloughs could save the state $30 million per week.

A memorandum accompanying the bill says, "This furlough addresses a necessary component of the Governor's financial plan to bring the State's finances into balance for the State Fiscal Year 2010-11, and is needed to ensure the State has sufficient cash flow in the absence of an enacted budget."

According to the memo, some employees would be exempt from the furloughs. Those include employees designated as managerial/confidential, or those whose positions are fully funded by the federal government. Agency heads are also authorized to exempt other employees based on the criteria that their duties be necessary for the preservation of health or safety. Lastly, the furlough would not apply to any employee who negotiates an agreement providing equivalent savings.

Other sections of the bill provide money for various specific expenditures and projects.

The bill now goes to the legislature. Upon its approval, the money will be transferred to the Comptroller to be paid out to the various departments.
Syracuse (WSYR-TV) - With no state budget deal anywhere in sight, tens of thousands of state workers are looking at the real possibility of furloughs. The Governor says unless an agreement is reached by the end of the week, he'll need to require workers take one unpaid day a week until a deal is done. Paterson plans to include that plan in the latest budget extender bill on Monday to keep government running, and most Central New York lawmakers are reluctantly planning to okay the extender.

Construction equipment sits idle and so do many workers at companies like Suit-Kote, a business that does road repairs for the state. It is just one casualty of the state budget stalemate that doesn't show any signs of breaking.

"I think there's really three divergent ways of looking at what's needed for the State of New York at this time and I don't think we're any closer to the Senate than we are with the Governor at this point," said Assemblyman Bill Magnarelli.

The governor says without being able to issue furloughs for state workers, he won't approve any more emergency spending. That action would essentially shut down state government at almost every level.

"That's just not an option, so if it comes to that, that's what's going to have to happen, hopefully between now and then we'll have even a more aggressive negotiations towards a final budget," Senator Dave Valesky.

"The Governor asking for a day a week I think that's a lot but I think in some instances a furlough would be better than a layoff," said Assemblywoman Joan Christensen.

Not all state lawmakers are so quick to say they'll back an extender bill on Monday whether it has furlough language in it or not. "Since we're not participating, since no one knows what's happening I can't say we're going to give you another week when nothing happens week after week so I voted no in the past and I will vote no on Monday," said Senator John DeFrancisco.

DeFrancisco says it's long past time for getting down to business, and doing it in an open forum. That doesn't appear to be in the very near future, however.

"I think we're coming up with some possibilities to get some things out of the way. There's still every time you have a discussion there's one person who pops up and says I need this, or else," said Assemblyman Al Stirpe.

The unions representing state workers have made it very clear they are opposed to the plan and the Governor is facing a potential lawsuit if the furloughs are enacted May 17 as he's proposed.

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