Budget cuts ands layoffs on the horizon
By Norman Leahy | Friday, October 28th, 2011 | Politics, VirginiaThe McDonnell administration has warned that more cuts to the state’s budget might be necessary. But in an interview with Jimmy Barrett on WRVA yesterday, McDonnell indicated those cuts — of 2, 4 or possibly 6 percent — might include layoffs as well:
Layoffs for state employees are not out of the question as part of Gov. Bob McDonnell’s forthcoming two-year budget proposal, and pay raises for workers are unlikely, the governor warned Thursday.
“The time for belt tightening is far from over,” McDonnell said in his monthly appearance on WRVA (1140 AM), hinting at the possibility of agency eliminations or consolidations.
While McDonnell said he hopes layoffs can be avoided, putting the possibility out there signals that the days of hard choices have finally arrived.
McDonnell emphasized that point when asked about the possibility of a cost of living increase for state workers:
Noting that most employees last year received a one-time 3 percent performance bonus, McDonnell said the possibility of a long-term pay raise as part of the biennial budget is unlikely.
“I’m very concerned about the unpredictability of what’s going on in Washington and its impact on our revenues,” he said. “I will do the best I can to take care of you, your family and others, but there are still uncertain times ahead, and I don’t believe we’re going to have a sustained pay increase this year.”
This is all prudent. But it also means the next General Assembly session could be quite bumpy as the specifics of the budget reductions come under scrutiny. The fights to come, though, will serve a critical function: separating those who really want a smaller, leaner government from the rest.
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About the author
Norm Leahy has written about Virginia and national politics online since 2002, beginning with One Man's Trash (OMT), and continuing through Bacon's Rebellion (both the blog and the e-zine), Sic Semper Tyrannis, NBC12's Decision Virginia, Richmond.com and Tertium Quids. He is the chief blogger at "The Score" and a producer of "The Score" radio show as well as being a Washington Post contributor.
Comments
7 Responses to "Budget cuts ands layoffs on the horizon"
Let me get this straight. Obama the great leftist cavalierly says “Hey fed workers no raise for a couple of years. And SS beneficiaries “No raise for you either” But McDonnell is apologetic that there may not be a raise this year for state workers? Why was there one last year? Why has the day of hard choices arrived on Oct 27 2011? Why didn’t it arrive Jan 2010? I don’t think any group including state workers should be singled out and vilified the way Obama and the Dems routinely do. However, I fail to see why this shouldn’t be handled “as a matter of fairness to private sector taxpayers.” Isn’t that kind and gentle enough for compassionate conservatives?
Val-the pay raise for state workers last year was to take some of the sting out of having to start contributing to their retirement plan. The state had been picking up their half of the contribution. They’d have taken a net cut in take home pay without the raise. Since the state originally started paying the employee share in lieu of a pay raise, it was equitable to hold them harmless during the change, which will save the state money in the long run.
Heavens to Murgatroyd! Contribute to their pension plan? Yikes. The way that Federal employees have always had to do? Along with other state workers; not to mention private sector workers? The horror of it all.
I’m so heartless. SV can you forgive me?
Val,
Agree. It is hard to get all choked up about public sector workers with their job security, health care and defined-benefit early retirement, and vacation allowance. It would do good for some of these folks to take a look at the private sector and what workers have to do there to earn a living and a affordable retirement.
Speaking of contributing to retirement, it is a little known fact that even the members of our military contribute to their retirement. Military pay compatibility calculations that are used to compute annual pay raises are off-set by the expected value of retired pay, something only 17% of military members stay in long enough to qualify for. If contributing to your retirement is good enough for a soldier, then it is good enough for the woman behind the counter at the DMV.
Interesting indeed how our Governor is apologetic and sincerely regrets having to hold off on raises (remember, we do still have inflation around 3%, so each year w/o a raise is like a 3% reduction in salary) and potential layoffs while our Campaigner-in-Chief basically tells feds and retirees to take a hike.
Just thought I’d throw in that the lack of Social Security increases is not due to Obama. The increases are determined by a formula signed into law long before he got into office. Congress can override the formula if they cared to do so, but President Obama can not sign such an increase until Congress sends him the bill with that in it.
It is ironic that at a time when most americans are realizing the detrimental effects of incessant tax cutting, that the Governor and his party continue to use the old formula of no tax increases. Already, tuition at colleges and universities is sky rocketing, our roads, bridges, and tunnels are a laughing stock, and the cuts to local government from the state are having a real effect on local jobs and services. Yes, this is what persistently cutting does to a Commonwealth; it destroys the infrastruture so our children must work harder to replace it. Does it save cost? Not really, it just postpones it and makes it more expensive later. These guys think they are heroes when they are really just spendthrifts.
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