Posted on 01/29/2009 7:04:16 PM PST by Born Conservative
HARRISBURG, Pa. (AP) - The Rendell administration told employee unions that state workers could be furloughed in a month and demanded they relinquish pay raises as the government scrambles to close a multibillion-dollar gap in state finances.
Negotiators for Gov. Ed Rendell also told representatives of the three major state workers' unions during a meeting Tuesday in Harrisburg that the administration wants to draw nearly $200 million from a reserve in their health insurance fund.
The governor's office also said it may institute "rolling furloughs" in which large parts of state government would be shuttered on certain days, while the workers would go without pay.
David Fillman, executive director of a union that represents 45,000 state workers, on Wednesday described the demands as unacceptable.
"I think it's premature for this threat of layoffs to shut everything down before they've fully exhausted other sources of revenue," said Fill man, head of Council 13 of the American Federation of State, County and Municipal Employees. "We should have been the discussion of last resort."
Rendell disclosed last week that he expected to order layoffs to take effect in the fiscal year that starts July 1. His annual budget address is next week.
The 30-day furlough notice was issued as a legal requirement but does not mean furloughs are more imminent or inevitable, Rendell spokesman Chuck Ardo said Wednesday. The administration said Tuesday that 1,000 to 2,000 jobs within the state's 78,000 full-time, salaried work force could be cut.
"The budget shortfall continues to grow exponentially and the situation changes on a daily basis," Ardo said.
He called the rolling furloughs one of the options under consideration.
"So long as the unions insist on maintaining their position, we are limited in our responses," he said.
The administration told the unions it wants them to agree to cancel a 2.25 percent raise that went into their paychecks this month, and to forgo a 3 percent pay increase scheduled for July 1. It also wants to reduce the Pennsylvania Employees Benefit Trust Fund's reserve from $244 million to $50 million.
Union officials said many of the demands required a vote by their members.
Wendell W. Young IV, president of Local 1776 of the United Food and Commercial Workers, said the trust fund's money provided a necessary cushion.
"If you cut it too close to the bone and there comes a day that the trust can't make its payments, you either have to cut benefits or increase the costs to employees," said Young, speaking for about 3,000 employees of state-owned liquor stores.
Kathy Jellison, president of the Pennsylvania Social Services Union, which represents about 10,000 state employees, said the unions gave Rendell's aides 23 pages of cost-savings suggestions.
Their analysis showed that the state's managerial ranks grew by 1, 200 during a recent period when the unions have lost 5,000 rank-and-file positions. They also argued that tax-code changes could be adopted.
"My members are scared," Jellison said. "They're afraid of layoffs, most certainly, and I certainly don't blame them."
The most recent estimate of the revenue shortfall for the end of the current fiscal year is $2.3 billion - or about 8 percent - and Rendell has to find about $3 billion more in increased revenues or spending cuts to balance the budget for the year that begins July 1.
Young said that he sympathized with Rendell's challenges but that he hopes the administration will look into the cost savings identified by the unions.
"It seems that the easy course is to go right to the workers who are raising families, supporting themselves and living paycheck to paycheck, and ask them to accept less," he said.
Rendell's aides and the unions plan to meet again on the subject after the Feb. 4 budget address.
Ping
The answer to this problem is perfectly clear to me, the good people of Pennsylvania aren’t taxed enough.
Fast Eddie, was that you who posted that?
The Socialist Democrat house of cards is falling.
I propose that our esteemed legislature take a 10% pay reduction, as my husband had to do, and give up their various perks, pay for their own gas, etc. City Councils statewide also, since our Council is making noises about tax increases. All in favor?
The first thing they should do is to sell the “state owned liquor stores” and lay off all of their employees.
He can be more of a Republican than some actual (cough, cough, Specter) Pennsylvania Republicans.
..and this furlough thing ain't happening..
no, no, no-they need to build 10 or 20 more casinos-that’s a win\win for everyone-eddie get’s more bribe money, the state rakes in more cash, the unions get more jobs, and all of the senior citizens don’t have to travel as far to gamble away their social security.
Rendell is a moron. Philadelphia, one of the worst cities in America, is his success story. ROFLMAO
ping
Too bad the Eagles didn't make it to the Super Bowl...an all PA game would have kept the Fast One 'distracted' for weeks...
I would have loved to see Eddie try to score points with the Steelers fans vs the Eagles. LOL
If nothing else, Eddie makes for good theatre.
I still find it amazing how more Pennsylvanians don't get together to quarantine Philly from spreading like the social disease that it is. Keep Independence Historical park and old city as protectorates, but the rest of the city should be closed off.
So don't be whining to me about high taxes... ;^)
And how much would you bet that he'll somehow find the 10 million bailout funds requested by the Phila. Inquirer. A newspaper that has always supported the slick one and his DemonRat culture of corruption buddies.
Philadelphia deserves what it gets.
The taxpayers deserve much better.
And that includes property taxes????
Still waiting for Philthadelphia to secede to Jersey....
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