Thursday, January 22, 2009

Furloughs for state workers? Don't bet on it

Today's Denver Post reports,

State employees may be forced to take furloughs to help offset a more than $600 million shortfall in the current budget year that ends in June.

And it's looking more likely that state workers will receive no pay raises the next fiscal year.

Those are two scenarios being considered by the legislature's Joint Budget Committee, which is trying to cope with a more than $1 billion shortfall over the next 18 months.

I'd say the post is a few days behind the curve. My understanding is that initially the governor's office believed mandatory 1 day a week furloughs would suffice. When they looked at their numbers again it became clear that their initial calculations were wrong, that it would take at least 2 days a week in mandatory leave and as a result furloughs were no longer being considered. The obvious conclusion being that the state probably cannot avoid layoffs.

The Post's point regarding pay raises is also, as I understand it, a foregone conclusion, there will be no pay raises for next year. The bigger question is whether or not the pay raises promised for this year will be funded.

Quite a mess.

No comments: