Perdue mandates furlough for state workers
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
Photo Caption: Gov. Bev Perdue
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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.
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