Paterson Playing Hardball, To Cut 8,900 State Jobs

by: phillip anderson

Tue Mar 24, 2009 at 17:35:18 PM EDT

Citing a $16.2 billion budget deficit that appears to be growing larger by the day, Gov. David Paterson this afternoon said his administration will eliminate 8,900 jobs, starting this summer.

"This is not a decision that has been reached lightly," said a letter that went out minutes ago from Paterson's state operations director Dennis Whalen.

"However, given the fact that savings through labor concessions were not achieved, Governor Paterson was forced to make this difficult decision for the good of the entire state."

Budget Division spokesman Jeffrey Gordon said the job cuts will probably start in July and they apply to "full-time equivalents," which means some of the target might be reached by attrition.

In his message to agency heads, Whalen said they will be providing updates and bulletins over the next few weeks.

Still unknown was where most of the cuts may fall, by geography and by agency.

That's pretty damn harsh, especially given that huge chunk of change we just got from the feds, funds that were supposed keep states from having to lay off staff in the middle of a severe recession.

Dennis Whalen's full letter is in the extended entry.

UPDATE: Malcolm Smith's office just released this statement:

These are difficult times and no segment of the state is immune to the harsh reality of the fiscal crisis. We urge the union leadership who represent the public sector workforce to step up and renegotiate a fair agreement that is consistent with the principle of shared sacrifice all New Yorkers must accept during times of economic distress. Public employees are among the most vital contributors to our workforce, but at the same time, they must also be our partners as we strive to change the structure of our state's budget and get New York's economy back on track.

TO: Agency Commissioners
FROM: Dennis Whalen
SUBJECT: Workforce Reduction Plan
DATE: March 24, 2009

As you well know, New York is facing an unprecedented fiscal emergency and record budget deficits. Governor Paterson has said that addressing this crisis will require reductions in every area of state spending.

In October, Governor Paterson called upon state employee unions to partner with the state to reduce costs. His goal in seeking labor concessions was to achieve necessary and critical savings while avoiding large-scale layoffs in a difficult economic climate. The Governor has stressed that we all share the responsibility to be accountable to the taxpayers of New York, and this includes closing an historic budget gap through shared sacrifice.

Unfortunately, the labor organizations representing state employees have rejected all of the savings options put forward by the Paterson administration. As a result, the state is left with no other option to achieve needed savings other than implementing a Workforce Reduction Plan. This plan is expected to result in a state workforce reduction equivalent to approximately 8,900 employees.

This is not a decision that has been reached lightly. However, given the fact that savings through labor concessions were not achieved, Governor Paterson was forced to make this difficult decision for the good of the entire state.

The Division of the Budget (DOB) is finalizing a Budget Bulletin that will provide a protocol and timetable for the Workforce Reduction Plan. You will receive this bulletin within the next week. My office will be following up with you in the coming days to discuss further steps necessary to implement these savings.

Thank you.