news-record.com

GOVERNMENT

Advertisement | Advertise with Us

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

This article has been closed to new comments. Comments are generally closed after 14 days. However, comments may be closed earlier at the discretion of the News & Record.

Inappropriate content? Please notify us.

bumpers

April 28, 2009 - 9:37 pm EDT

mrs perdue i hope you enjoy this 4 years because i have a strong feeling you will not be voted back in, how can you take away from our children

diane5000

April 29, 2009 - 7:02 am EDT

Sad. I do not think that the general population realizes the salaries of "line workers", office staff etc. and the impact this will have.
Many will not be able to take the time off because of workloads, timeframes and unpaid overtime. With many positions under Federal Mandates, I question the legality of this executive order. I too question where all the money actually is. Perhaps one day I can really look at the budget in detail......perhaps during furlough.

igliigli

April 29, 2009 - 9:18 am EDT

Why not fire all the overpaid UNC coaches and use the money for real teachers?

Prisonofficer

April 29, 2009 - 12:51 pm EDT

Let me count the ways…Purdue took my longevity pay, cut pay from my pay check, raise the cost of my health insurance, closing my worksite and now I have to take 10 hrs of unpaid leave. Now can someone get their hands out of my pocket? I have a family to feed to.

Sara2007

April 29, 2009 - 7:21 pm EDT

Add another topic to the bucket...beginning teachers who make less than $30,000/year (after taxes). These teachers definitely live paycheck to paycheck as well as teacher assistants and behavior support assistants. I work with spec ed students so I get the spec ed supplement in my paycheck but it's only my 2nd year and I don't get a "step" (raise) until my 4th year. The only raise I get is a cost-of living raise which probably won't happen next school year.

Beginning teachers put in 60+ because they are new to the whole teaching thing and we don't get paid for those extra hours. Yes I am glad I still have a job but 10 days that probably can't be used on a real school day is worthless to me. What about those big executive directors in the school system who can afford a pay cut? Leave teachers alone since we actually have to spend each day with the kids and countless hours on other teacher duties.

Obviously no teacher went in to teaching for the money but when it's cut back to where we are struggling to get by and work 2-3 extra jobs plus summer temp jobs, being a teacher sucks. We should be able to focus on the purpose of our job, not figuring out where to get the extra $200 bucks we will be short next month. I just don't understand how it's legal to take money away from us that' we've already earned.

ymatlosz

May 12, 2009 - 12:46 pm EDT

In the case you gave, someone making $30,000 would have to return $150 pre-tax dollars. They probably got a small increase to their paycheck in April from the Obama stimulus plan, so by June, 2009 they will actually be making more than they were in March, 2009.

Also, keep in mind that these are PRE-TAX amounts. That $150 would probably be around $100 take-home after taxes and retirement contributions are deducted.

deerbuster

May 4, 2009 - 10:16 pm EDT

why not offer early retiarement to employees with 25 years of service looks like be lot of savings to me i am an employe of dot since 1983

namonaip1

May 6, 2009 - 3:41 pm EDT

I was just looking over my contract. I am a part time instructor in the Community College System. As far as I thought, it was illegal to change the terms of a contract before the contract was finished. If a company did this, they would be sued. How does the governor have the right, or the GALL, to do this to workers. I also found out that because I'm contracted this semester, they are going to take out money this semester for money I made last semester! Does anyone know if there has been a lawsuit filed yet against this? If not we all need to start one. A contract is LEGALLY binding to both parties involved, EVEN if one is the government. This is outright theft of citizen's money. If Ford did this, the union would strike (however stupid that would be), but if the teachers union isn't allowed to strike technically. The government is here to protect us, and as I see it, they are expecting us to do their job. Until I see them STOP doing unnecessary work around the state and spending time "honoring" the UNC basketball team (which costs money by the way) I will NOT support state furloughs.

ymatlosz

May 12, 2009 - 12:39 pm EDT

Given that this cut will come after the small increase from the Obama plan, most people's pay will actually go up a tiny amount -- even with the furlough. I am a state employee will still come out a little bit ahead of where I was 3 months ago, and I'm happy to have the extra time off.

For someone making $50,000, the furlough amount would be $250. Take away the amount that is taxed, 401K contributions, etc. and the net result is a little more than $100. It's not a big deal in the grand scheme of things.

Yvonne

eMail Updates

Advertisement | Advertise with Us

Featured Ads

Search

Advertisement | Advertise with Us
Advertisement | Advertise with Us
Advertisement | Advertise with Us

News & Record Network Sites

Triad Weather

  • Current Condition: CLOUDY
  • Current Temperature: 48°
  • UV Idx: 0
  • Forecast High/Low: H: 61° L: 45°

User Tools

  • Social Networking
  • RSS
  • Share
  • Sign in to MyNR

Search