Chief
08-05-2008, 07:15 AM
http://www.thenewstribune.com/front/topstories/story/434303.html
Governor acts to offset reduced tax revenues; Rossi says it’s not enough
BRAD SHANNON; The Olympian
Published: August 5th, 200
Gov. Chris Gregoire ordered an immediate hiring freeze at state agencies Monday that could eliminate 1,951 jobs and save $90 million in the next fiscal year. Gregoire, a Democrat caught with a slowing economy during a re-election campaign, also urged agency leaders to aggressively reduce fuel consumption by 5 percent.
She ordered a clampdown on out-of-state travel, purchases of equipment and signing of personal service contracts – with exceptions for emergencies.
The announcement comes more than a month after Republican Sen. Joe Zarelli called for a “soft freeze” that exempted higher education. Gregoire’s staff said weaker-than-expected revenue reports in July forced the decision.
Dino Rossi, the Republican challenger for governor, put out a statement saying he would go further than Gregoire – cutting the size of the governor’s staff and freezing salary increases for politically appointed state employees.
“Further, Governor Gregoire should suspend salary negotiations with state employee groups over pay increases until we know the full extent of our deficit next year,” Rossi said in a statement.
Gregoire stood by her decision.
“I am asking each of you to step up your efforts to increase savings. I ask that you be creative and take action now,” she said in a news release. “The high price of energy is hurting our businesses and our families. Anything we can do to reduce fuel consumption will ease the burden on our budget and on taxpayers.”
Gregoire’s call went to agencies that report to her directly and to independently led agencies that can ignore her. Details were announced in a conference call from Gregoire chief of staff Cindy Zehnder and budget director Victor Moore to state agency leaders.
“It’s across the board except for exemptions for certain public safety positions,” said Glenn Kuper, spokesman for Gregoire’s Office of Financial Management.
The exemptions include prison guards, child-protective workers and other public safety positions deemed sensitive because they deal with vulnerable populations.
Republican Party chairman Luke Esser was suspicious of Gregoire’s timing.
“To me, it’s clearly not a matter of deep conviction, or she wouldn’t have waited so long to do so,” Esser said. “I don’t know which she is more afraid of, the looming deficit her overspending created, or the Rossi for governor campaign. But clearly one or the other or both motivated her decision today.”
Zarelli said the governor made the right call to begin addressing a situation that could get worse.
“Whatever works, as long as they are doing it, because it needs to get done,” Zarelli, the ranking GOP member of the Senate Ways and Means Committee, said by telephone.
“You can’t just keep waiting and hoping and dreaming that things will get better. You’ve got to deal with the freshest information. That tells us we have got to start doing that now. So I’m glad to see the governor is doing some things that will help us to better manage our budget problems next year.”
The overall reductions were similar to what Zarelli called for in June; he predicted savings of perhaps $135 million at the time and would have allowed one new hire for every four employees that left in nonessential positions.
Kuper said the freeze in its first year could eliminate 933 full-time equivalent positions in general government agencies and 1,018 more in higher education, for 1,951 total. Total state government employment is roughly 111,000 full-time workers, including 63,000 in general-government agencies and about 48,000 in higher education, Kuper said.
Tim Welch of the Washington Federation of State Employees said exempted categories include jobs that deal with vulnerable children and adults, the mentally ill, developmentally disabled, juvenile offenders and public safety. He called it a “bittersweet situation” because some workers are overtaxed, “but you don’t want to hire folks just to lay them off.”
The governor’s order lets agencies fill positions in cases where interviews and recruitment already are under way, Moore said, adding that the Department of Personnel must review requests to fill positions deemed essential.
The order to freeze hiring was spurred solely by slowing tax collections, Moore said. Revenue for June was about $40 million less than forecasts; an additional $20 million went to unexpected refunds, leaving the state about $60 million short, he said.
Under the mid-June revenue forecast, state government was predicted to have $800 million in reserves at the end of the two-year cycle on June 30, 2009. But Senate budget staffers have predicted that a shortfall of $2.7 billion is developing for 2009-11 – leaving a net gap of $2 billion. The $800 million includes money put into a special voter-approved “rainy day” fund.
Governor acts to offset reduced tax revenues; Rossi says it’s not enough
BRAD SHANNON; The Olympian
Published: August 5th, 200
Gov. Chris Gregoire ordered an immediate hiring freeze at state agencies Monday that could eliminate 1,951 jobs and save $90 million in the next fiscal year. Gregoire, a Democrat caught with a slowing economy during a re-election campaign, also urged agency leaders to aggressively reduce fuel consumption by 5 percent.
She ordered a clampdown on out-of-state travel, purchases of equipment and signing of personal service contracts – with exceptions for emergencies.
The announcement comes more than a month after Republican Sen. Joe Zarelli called for a “soft freeze” that exempted higher education. Gregoire’s staff said weaker-than-expected revenue reports in July forced the decision.
Dino Rossi, the Republican challenger for governor, put out a statement saying he would go further than Gregoire – cutting the size of the governor’s staff and freezing salary increases for politically appointed state employees.
“Further, Governor Gregoire should suspend salary negotiations with state employee groups over pay increases until we know the full extent of our deficit next year,” Rossi said in a statement.
Gregoire stood by her decision.
“I am asking each of you to step up your efforts to increase savings. I ask that you be creative and take action now,” she said in a news release. “The high price of energy is hurting our businesses and our families. Anything we can do to reduce fuel consumption will ease the burden on our budget and on taxpayers.”
Gregoire’s call went to agencies that report to her directly and to independently led agencies that can ignore her. Details were announced in a conference call from Gregoire chief of staff Cindy Zehnder and budget director Victor Moore to state agency leaders.
“It’s across the board except for exemptions for certain public safety positions,” said Glenn Kuper, spokesman for Gregoire’s Office of Financial Management.
The exemptions include prison guards, child-protective workers and other public safety positions deemed sensitive because they deal with vulnerable populations.
Republican Party chairman Luke Esser was suspicious of Gregoire’s timing.
“To me, it’s clearly not a matter of deep conviction, or she wouldn’t have waited so long to do so,” Esser said. “I don’t know which she is more afraid of, the looming deficit her overspending created, or the Rossi for governor campaign. But clearly one or the other or both motivated her decision today.”
Zarelli said the governor made the right call to begin addressing a situation that could get worse.
“Whatever works, as long as they are doing it, because it needs to get done,” Zarelli, the ranking GOP member of the Senate Ways and Means Committee, said by telephone.
“You can’t just keep waiting and hoping and dreaming that things will get better. You’ve got to deal with the freshest information. That tells us we have got to start doing that now. So I’m glad to see the governor is doing some things that will help us to better manage our budget problems next year.”
The overall reductions were similar to what Zarelli called for in June; he predicted savings of perhaps $135 million at the time and would have allowed one new hire for every four employees that left in nonessential positions.
Kuper said the freeze in its first year could eliminate 933 full-time equivalent positions in general government agencies and 1,018 more in higher education, for 1,951 total. Total state government employment is roughly 111,000 full-time workers, including 63,000 in general-government agencies and about 48,000 in higher education, Kuper said.
Tim Welch of the Washington Federation of State Employees said exempted categories include jobs that deal with vulnerable children and adults, the mentally ill, developmentally disabled, juvenile offenders and public safety. He called it a “bittersweet situation” because some workers are overtaxed, “but you don’t want to hire folks just to lay them off.”
The governor’s order lets agencies fill positions in cases where interviews and recruitment already are under way, Moore said, adding that the Department of Personnel must review requests to fill positions deemed essential.
The order to freeze hiring was spurred solely by slowing tax collections, Moore said. Revenue for June was about $40 million less than forecasts; an additional $20 million went to unexpected refunds, leaving the state about $60 million short, he said.
Under the mid-June revenue forecast, state government was predicted to have $800 million in reserves at the end of the two-year cycle on June 30, 2009. But Senate budget staffers have predicted that a shortfall of $2.7 billion is developing for 2009-11 – leaving a net gap of $2 billion. The $800 million includes money put into a special voter-approved “rainy day” fund.