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Perdue mandates furlough for state workers

Wednesday, April 29, 2009
(Updated 4:29 pm)

RALEIGH — Gov. Bev Perdue called the 10-hour furloughs for state workers that she announced Tuesday “distasteful.”

They could be just a taste of things to come.

North Carolina’s economy has slowed along with the rest of the country. Layoffs, stock market losses and falling sales have led to drops in income, sales and other taxes the state relies on to fund public schools, health insurance for the poor and more.

“It isn’t over now,” Perdue said after announcing that all state workers — including public schoolteachers — would have to give back one-half of 1 percent of their salaries by June 30 in exchange for 10 hours of unpaid time off they must use by Dec. 31. “Don’t you all think it’s over now because we’ve got a long way to go before North Carolina has fully recovered.”

The furloughs will affect 1,413 state workers based in Guilford County, mainly in the criminal justice and social service systems. Not included in that number are employees of the county’s public school system, public universities and community colleges, who also will be forced to take unpaid time.

The furloughs across the state will amount to $65 million, a fraction of the money Perdue needed to scrape together this week. Already, she has cut $2.2 billion from the state budget that ends June 30. This week, she is slicing another $1 billion.

The rest — $935 million — is made up from economic stimulus funds, money from the state’s “rainy day” account and seizing money from various trust funds and other specialized accounts.

All of that was money state budget writers had hoped to use during the two years that begin July 1.

Now that it’s gone, lawmakers will find it even more difficult to bridge the gap between taxes the state expects to collect next year and the money that would be needed to keep government running at its current levels.

“It has increased our challenge, no question about that,” said Rep. Alma Adams, a Greensboro Democrat and one of the House lawmakers responsible for writing the budget. “It’s frustrating.”

With Perdue confiscating much of what might be considered the state’s savings account, legislators will not have a choice to raise taxes and/or cut programs at a time when demand for government services is on the rise.

But for the next two months, the “flexible furloughs” of state workers will be the most tangible sign of the state’s economic distress.

Although she couldn’t order other elected officials to accept the pay cuts, Perdue said she has received assurances from the General Assembly and judicial branch that they would participate in the salary give-backs.

“If you are reducing the salaries of others, you should do that yourselves,” Sen. Marc Basnight, a Manteo Democrat and the most powerful official in the Senate.

Adams, Basnight and other legislators did not criticize Perdue on Tuesday, saying the furlough program was something she needed to do to balance the state’s budget.

Even lobbyists who work on behalf of state employees seemed resigned to the cuts.

“We have to say we hate it,” said Sheri Strickland, president of the N.C. Association of Educators. “But no one is going to lose their job as a result of doing it this way. ... Right now, saving jobs, minimizing the impact on the classroom has to be top priority, and this does that.”

The State Employees Association of North Carolina attacked one lawmaker in a radio ad this week for suggesting the use of furloughs as a way to bridge budget gaps.

“We are not pleased with the idea of furloughs,” said Ardis Watkins, SEANC’s chief lobbyist said. But she stopped short of criticizing the governor, saying the Democrat had little choice but to balance the budget. “It is what it is,” she said.

At UNCG, faculty members were disappointed but not panicked.

“My staff and the faculty aren’t happy, but we aren’t crying either,” said Anne Wallace, head of the English Department. “No cut in your pay is good, but a half a percent doesn’t seem so bad. Most people expected worse, and worse may yet come.”

She added that staff time off could be staggered so as not to affect operations.

“But with faculty — they’re really not paid by the hour. It’s not that kind of job. We’ll just be seeing a pay cut.”

There was more concern about the impact on public school employees.

“I just don’t think our children’s future is where we should be making cuts,” said Christina Lipstreu, a fifth-grade teacher at Pleasant Garden Elementary.

Lipstreu said many teachers are dipping into their own pockets to buy classroom supplies after local budget cuts — in part because of the state shortfall — limited supply funds. Add to that the lost salary now, and it’s like the state is cutting pay twice, she said.

“It’s really going to put a strain on families, especially going into summertime,” she said.

Because of snow makeup days, Guilford County Schools has only one teacher work day left in the current academic calendar, on June 16. That’s eight hours. That could make taking the 10 hours of furlough time nearly impossible for teachers who will not be returning this fall.


Staff writers Brian Ewing and Joe Killian contributed to this report.

Contact Mark Binker at (919) 832-5549 or mark.binker@news-record.com

Accompanying Photos

File photo (Associated Press)

Photo Caption: Gov. Bev Perdue

MORE ONLINE

Mark Binker's Capital Beat blog: "Perdue furloughing state workers"

The furloughs

Gov. Bev Perdue announced a “flexible furlough” program for all teachers and state employees Tuesday. Here’s what that means:

State workers lose: One-half of 1 percent of their pay for the current fiscal year that ends June 30. That amounts to $250 for a person making $50,000, or $150 for a worker making $30,000. That money will be taken out of paychecks during the next two months.

State workers get: 10 hours of unpaid time off that can be taken between June 1 and Dec. 31.

The state gets: $65 million in savings that it can put toward a $3.2 billion gap in the budget for the year than ends June 30.

In Guilford County: The “flexible furloughs” affect public school employees as well as those who work for public universities and community colleges. In addition, there are 1,413 other state workers — mainly in criminal justice and social service agencies — who will be affected.

Comments

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JackBlack

April 28, 2009 - 11:12 am EDT

An easy egalitarian and simplistic policy decision that expends no political capital whatsoever on Aunt Bev's part. Real work and courageous governance would require the ferreting out of useless deadwood positions, whole departments, and even pernicious government officials and firing the whole lot of them.

Laura

April 28, 2009 - 11:34 am EDT

Why should state workers alone have to bear the brunt of shrinking tax revenues? How about spreading the pain to those who benefited from the last eight years of excess -- namely corporations that have seen handsome tax cuts in recent years. How about asking them to pay a little more now that times are tight?

Panacea

April 28, 2009 - 11:53 am EDT

We have to be careful about corporate tax rates. Too high, and they go to other states to build their factories, costing the state jobs.

I'd like to see companies like Dell be forced to pay back incentives for not living up to their agreements with the state. And stop giving incentives.

tonymo

April 28, 2009 - 11:51 am EDT

Laura how long have you been gone from planet earth? Perhaps you've missed the news that 5-6 million people have lost jobs, and many corportions areon life suppoer. Do ya think any of those people would rsther have been forced to take ONE AND ONE-HALF UNPAID DAY OVER 6 MONTHS!

You're either one of thsoe bureaucrats who live off the taxpayer, or a recent government school graduate. Bear the brunt? unbelievable!

Panacea

April 28, 2009 - 11:57 am EDT

Tonymo, I would agree that the state worker is not taking the "brunt" of the budget cutting, but we are taking a hard hit.

As you know, I am indeed a state worker. I wince at the thought of having to take 10 hours unpaid leave. It will hurt.

Ya gotta remember, MOST state employees don't make anywhere near as much as their counterparts in the private sector. Most are not the high paying political jobs. These furloughs hurt.

I'd like to see the Governor publish a list of political appointees who are also taking a furlough, how how much it saves the state for each of them. It will make bearing the pain of my own salary loss a little easier.

However, I am still grateful to have a job.

Wilhammer

April 28, 2009 - 11:58 am EDT

State Workers are people and citizens too.

We just took a hit with our health insurance, and we already earn 70-80% of the Private Sector for similar jobs.

BTW READ the memo - we are 'getting' a 0.5% PAY CUT and 10 days of flex time we have to take before year's end.

Billy

April 28, 2009 - 11:59 am EDT

10 hrs!!!!! 1 out of 10 in our state is out of work, how many others are on short time, I for one am. It's time government gets extremely serious about how they expect to keep going and promising with no means of revenue except to tax which with unemployment doesn't collect a lot... I have yet to go into a State office/school, etc where the pace in anywhere near private industry or I should say the average worker in private industry and pay scales and benefits are no longer in line with average industry. I have a family member (Professional) with the State gets a nice raise each year to be competitive with private industry yet same (Professional) (Dr.) who I go to also working short time and scraping to keep his staff. Waste some more money and due some time studies.....

Wilhammer

April 28, 2009 - 12:08 pm EDT

I was laid off during the last economic crisis, and my wife was laid off during this one.

To get back into the workforce, I took a 40% cut in pay when I took my VERY BUSY gov't job.

AllMiT

April 28, 2009 - 12:11 pm EDT

The Raleigh N&O and Charlotte Observer read that the furlough and pay cut is BEFORE June 30 (this fiscal year) so that they can balance the '09 budget not for NEXT fiscal year that begins JULY 1. GET IT RIGHT NEWS & RECORD!

Michael Grossman

April 28, 2009 - 12:38 pm EDT

The cut in pay will be by June 30, but the actual 10 hours can be taken until Dec. 31. What we have stated is correct, and you can read the .pdf of the memo if you still think otherwise.

eclipse3

April 28, 2009 - 12:15 pm EDT

I am not a state employee but this is just wrong. As hard as it is already to make it today, homes need their steady income to survive. How much does she make a year?

I am guessing that the bans on cigarettes have helped to grow our state's deficit. Just think of all that tax money that disappeared. And think of how much more is going to leave when the tobacco companies start laying off/ shutting down.

Maybe she can sit around , enjoying her big paycheck, and think of what to ban next. For those of you who support Ms. Perdue, you may finally start to get that she and Obama are on the same wave length. As long as they don't have to give anything up, they truly don't care what happens to the rest of us.

Wonder how much the light bill is in the governor's mansion?

cata68k

April 28, 2009 - 1:35 pm EDT

Totally agree. let's see her setting an exemple first and then to be expecting of us to save the economy. we are suppose to work together, not some to come with the ideas and some to sacrifice.

d3j3t3

April 28, 2009 - 4:24 pm EDT

you hit the nail on the head with every word you said!

whatnow

April 29, 2009 - 9:00 am EDT

AMEN! I work for a small company that has lost over 100 positions. Our senior management took pay cuts as well. What is our state leadership doing? What kind of personal cuts are they taking?

Momof3Dears

April 28, 2009 - 12:33 pm EDT

This IS the end of the world for a single mother whose last two paychecks of the school year will be short a couple of hundred, and having done away with summer month paychecks means no check at all in June and July on top of the last two paychecks being short.

Thanks a lump, Bev! I wish I could take my vote back!

I say we get rid of some of these sorry superintendents and principals making these "fake" tough decisions and cutting positions that aren't filled anyway, or "cutting" positions that principals can just buy back using money that will be spent anyway.

turkey

April 28, 2009 - 10:42 pm EDT

How much money would the school save by cutting the people who are double dipping. If you don't know that is collecting retirement and a paycheck.

Momof3Dears

April 28, 2009 - 10:59 pm EDT

I don't know. I mean, those people are filling positions that were already open and needed filling. In fact, it might save a dime because that's only ONE person getting health benefits (as a retiree and a current employee) as opposed to two different people getting health benefits (the retiree and a different person filling that position).

But then again, they are probably being paid at the higher end of the pay scales due to experience as opposed to a new person being paid at the lower end, so it may even out. Six of one, half a dozen of another.

america

April 28, 2009 - 12:52 pm EDT

WOW, let's see... Gov Bev just came up with a whopping 2% of the state deficit. We're saved!!!! She'd better get serious about her job and cut out the fat she's doled out to her cronies.
Too many folks have noted State workers make less than private sector folks and government workers are "citizens and taxpayers, too". You're not forced to stay on the taxpayer's dime. Get a private sector job if that's your gripe. Wonder if these government employees ever gripe when the state government grows beyond its means. Not likely. Gov. workers like bigger government. Laura's plan to balance her budget on the corporate back is a perfect solution... Perfect way to shut down the state economy. The government does not generate revenue, it doesn't create jobs, it doesn't innovate, manufacture, or produce anything. That's what corporations, businesses, and "We the People" do. Governments spend - period.
If you don't like the problems that government creates ... get a load of the problems their "solutions" cause.

Panacea

April 28, 2009 - 4:21 pm EDT

OK, america. Tell ya what. Let's fire every cop, teacher, firefighter, paramedic and see what happens when your house burns down/gets burglarized and when your kids are stuck at home all day because there is no school for them to go to.

Buy hey, taxes will go down, right?

Do you understand that before firefighting was taken over as city government services, you had to pay firemen to save your home? If you didn't, on the spot, they didn't save your house. Or they might break into it and steal what they wanted and still let it burn to the ground.

Jeez! Wake up! Government provides valuable services, and government employees are not a bunch of lazy asses sitting around collecting a paycheck and doing no work. We work just as hard as anyone in the private sector. Our employer just happens to be the state instead of GM, or Bank of America.

The government is not perfect. Neither is corporate America.

The entertainment industry wants to keep popular characters like Mickey Mouse in copyright forever so they can keep making a buck on him. Walt Disney, his creator is long dead.

GM wants to keep making cars no one wants to buy. The biggest sellers of cars are Toyota and Honda.

Don't try to tell me corporations are the only ones who innovate--it ain't true.

Yes, lots of things about government need to be fixed. The FDA is horribly inefficient--because the pharma industry wants it that way.

The problems are far more complicated than "guvm't worker's are lazy and I pay them to do nothing." Baloney!

america

April 28, 2009 - 5:45 pm EDT

I stand absolutely and humbly corrected on your first point. I would NEVER classify teachers, police, and firefighters in the same category as "guvm't workers". Their services are exactly what taxes ought to be paid for. Also, I would never claim or insult someone by calling them "a bunch of lazy asses". I simply pointed out the facts that a lot of "guvm't workers" can't handle or wish to ignore.

And boy did you ever lose me on the Disney thing.

Panacea

April 28, 2009 - 6:08 pm EDT

america,
You mentioned that government does not innovate and private sector does.

Many segments of the private sector continue to get fat on the creativity of others, many of whom are long dead. That's where the Disney comment comes from: Disney wants to keep characters that should be coming into the public domain in copyright so only they can profit off them, in spite of the fact Walt Disney died years ago. They profit off Walt's creativity after his death. Copyright wasn't intended for that.

I'm not sure what facts government workers ignore that you are talking about.

Unless you mean politicians, who are a horse of another color.

SpeakUp

April 28, 2009 - 6:08 pm EDT

I agree with you... State workers do not make decent pay anyway... Most of us despite common belief, many of us do several jobs at once. Perhaps people making over 100,000 like Bowles should have to give us 1% or more... Some state chancellors make as much as 175,000 per year---more than the governor.

cmlovely13

April 28, 2009 - 4:29 pm EDT

There are not enough private schools for every teacher to move to the private sector. I have worked in the private sector, and I took a 50% pay cut to be a teacher because I wanted to educate the next generation. You must not have children, or you would appreciate that teachers still have jobs and are educating your children rather than forcing them to sit at home. It's not ALL about money, but it is about principles, and obviously our Governor has lost hers. This is not going to help anyone who has lost their job, it is just going to hurt more of North Carolina's citizen taxpayers.

america

April 29, 2009 - 8:47 am EDT

cm, You assume too much. I have children in GCS and my spouse is a teacher. You are correct - there are not enough private schools and charter schools that would reduce the burden on the taxpayers and provide better educational opportunities for our children. You are absolutely correct - Gov Bev has no principles and rather than make meaningful changes in the state government, she made a poor decision that doesn't even start to address the real problem. Her decision covers only 2% of the budget deficit. She'll have to repeat this process 50 times to balance this year's budget. Heaven help us all !!!!

Noname

April 28, 2009 - 1:06 pm EDT

My big question is "Where has the NC Educational Lottery money gone?"

Momof3Dears

April 28, 2009 - 3:16 pm EDT

Now that's a joke! Ha! "Education" Lottery.

What a waste because either it's NOT going to education or no one's playing it.

jamesg4578

April 28, 2009 - 1:18 pm EDT

What good will 10hrs flex time be to a teacher who has to pay $50 to take a day off?

Shess

April 28, 2009 - 2:08 pm EDT

I would like to know when teachers are supposed to take the ten hours? Whose supervisior is going to let them leave the classroom and pay for a sub to do it?

commonsense45

April 28, 2009 - 4:56 pm EDT

Teachers already work hours for which they are not paid, so it makes no sense that Perdue is giving us 10 hours of free time. When are we going to take that, during the school year? We can afford to have school for three extra days after testing, but we are giving teachers a pay cut for hours they have already worked. I don't understand why anyone has not brought this up? Where is the teacher's association? They just always agree to everything. Teachers as a group are just yes people, I see this all the time at my school, everyone complains about the injustices but they say yes to everything because they are afraid to stick up for their rights as employees (that the private sector would never get away with). These are hard working people, who will go to extremes to help children learn.

Gray

April 28, 2009 - 11:33 pm EDT

I said this many times when I was a public HS teacher: this is yet another reason why NC teachers need to unionize.

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