By Kirk Ross
Staff Writer
As legislators gathered in Raleigh for a gloomy set of economic briefings, university employees continue to worry about possible furloughs and job cuts and are seeking more information on how individual departments will trim budgets.
Last week, UNC system President Erskine Bowles said he is seeking authority to furlough workers to balance the system budget. On Tuesday and Wednesday of this week, legislators heard consecutive briefings on the state’s declining revenues and troubles with the state health care plan. In both instances, an already bleak outlook for state workers further dimmed.
Revenue projections for this year show a gap of $2.1 billion between previous projections and reality by the end of the fiscal year in June. The recession will continue through much of 2009, analysts told legislators at a briefing Tuesday.
The health care plan news, delivered on Wednesday, was equally sobering. Without action, the plan will be out of funds by March 31 and unable to pay claims.
Mark Trogdon of the Legislature’s Fiscal Research Division told members of the General Assembly that increased costs and planning errors will leave a $300 million gap in the state health plan by June 30 and a $1.2 billion projected deficit over the next two years. Trogdon called the situation dire and said bridging the gap will take a combination of premium increases, benefit cuts and additional administrative savings. Just relying on premiums, he said, would require a jump of more than 30 percent.
Sen. Ellie Kinnaird said she wants to hold the line against state job cuts. “I do not want to see us layoff any state workers,†she said. Legislators have to be willing to consider raising revenue. “We’ve got to raise alcohol and cigarette taxes,†Kinnaird said. “It’s time.â€
Dana Cope, executive director of the State Employees Association of North Carolina, said cutting state workers at a time when the need for services is increasing doesn’t make sense. “We can’t afford any layoffs or furloughs,†he said.
The logic of cutting jobs, Cope said, runs counter to the Obama administration’s strategy of trying to put people to work.
One hope for the state, he said, is if a federal stimulus bill makes it into law. The current version of the bill would pump more than $16 billion into the state, Cope said, with about $3 billion available to help ease the state’s budget crisis.
Cope also said that making the state health care plan less affordable hits one of the best remaining benefits for state workers.
Brenda Denzler, vice chair of UNC-Chapel Hill’s Employee Forum, said the feedback she’s hearing from workers indicates a need for more information about how individual departments are planning for budget cuts.
Denzler said in a recent letter to employees, Chancellor Holden Thorp said that budget cuts could lead to staff losses ranging from 85 to 150 positions.
Before that happens, Denzler said, employees want to be assured that administrators did a thorough job of cutting costs and studying options.
If it does come down to cuts, Denzler said, employees are willing to “link arms and share the burden.†One idea, she said, would be for employees to agree to a small cut in hours instead of seeing job cuts.
“If we can spread the pain around, we may not have to cut positions,†she said.
Because of that, she added, the idea of furloughs has some appeal. But Denzler said before the Legislature grants the UNC system the authority to furlough workers, there need to be clear limits and guidelines.
“It needs to be time limited,†she said. “They should say ‘you have this authority for the next year’ and not make it indefinite.â€
And the authority to furlough workers should also extend to other parts of state government, she said. “The option should not just be limited to the university. It ought to be an option for all state agencies. If it is a useful tool, then it’s useful for all state agencies.â€
Gov. Perdue’s FY 10-11 Budget Proposal & APS Program Impacts
Sen. Ellie Kinnaird, April 28, 2010
The budget proposal released by Governor Perdue, FY 10-11 on Thursday, April 22, calls for the elimination of 10.5 positions in DWQ , and the re-allocation of funds for eight others.
The effects on Division of Water Quality (DWQ), and Aquifer Protection Section(APS) in particular, are substantial. Most of the positions slated for elimination are currently occupied. All seven of the drilling staff, in the Groundwater Investigation Units(GWIU), positions are proposed for elimination. If these cuts are adopted in the final budget, the impact on DWQ/APS would devastate our plans for implementing an effective groundwater monitoring and planning program. We ask that you review the Governor’s Budget Proposal with your respective colleagues, and see the necessity of retaining this drilling capability in the Division of Water Quality.
The following letter has been created in the attempt to express the value and purpose of the APS Drilling Crew in the quest of Public Health and Safety.
Sincerely Yours, with respect
The APS Drill Crew
Billy Casper – Drill Supervisor
Jesse Martin – Hydro Drill Tech II
Dennis Foyles – Hydro Drill Tech II
Joseph Bailey – Hydro Drill Tech II
Terry Goff – Hydro Drill Tech I
Allen Mason – Hydro Drill Tech I
Stuart Bowman – Hydro Drill Tech I