[S]ecretary of Administration Justin Johnson sent a memo this week to agency and department heads asking them to prepare a “contingency” for cutting between 150 and 325 state jobs to help balance next year’s budget.
Gov. Peter Shumlin’s proposed FY 2016 budget relies on $10.8 million in labor savings to close a $113 million shortfall. Johnson writes that it “seems unlikely” that the Vermont State Employees Association will reopen its contract to help achieve those savings, which leaves him with “no choice” but to begin planning for a “significant” reduction in force across state government.
His memo notes that the administration has only four months to find the labor savings, and any layoffs would be effective July 1 — the start of the state fiscal year. Johnson leaves open the possibility reductions could come from “operational” or “non-employee” savings, but adds that either way the savings are not one-time cuts but reductions to baseline agency and department budgets.
The Agency of Human Services, which accounts for roughly two-thirds of state spending, is being asked to find the largest amount of savings at $4.6 million. The Agency of Natural Resources is being asked to find $1.27 million in savings, and the Agency of Administration, $1.16 million. The rest of the reductions are detailed in documents posted below.
VSEA Executive Director Steve Howard said the union should not be asked to reopen its contract, and has no plans to do so.
“Our members have for almost a decade come to the table to help the state to balance the budget,” he said Thursday.
State workers, especially in the Agency of Human Services, have taken on larger caseloads as a result of the most recent round of layoffs, and agreed to contribute more to their retirement and health care plans among other steps to help the state save money, Howard said.
“We do not think it’s fair that the way we’re balancing the budget is by picking the pocket of snowplow drivers, administrative assistants and nursing aides, working class Vermonters who provide public services, before we ask wealthy Vermonters to pay more,” he added.
The top 20 percent of Vermonters have seen income increases of 6 percent between 2008 and 2013, while the remaining 80 percent of earners have seen wages shrink by 3 percent or remain stagnant. The VSEA has suggested that the state raise taxes on the wealthy.
Shumlin has rejected the idea of raising taxes on the wealthy. At a recent press conference, he said Vermont can’t tax its way to a balanced budget. He did not address income inequality, or whether the wealthy could afford to pay more in taxes.
Johnson’s memo asks department heads to have planned cuts ready by March 16.
