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.
McDonnell, who will present his proposed biennial budget Dec. 19, already has asked agency heads to submit by Monday proposed cuts equal to 2, 4 and 6 percent of their 2012-14 general fund appropriations. He also is using work groups to propose targeted savings in the state's costliest programs, such as public education and Medicaid.
"I hope not," McDonnell said when host Jimmy Barrett asked him if layoffs might be necessary.
"We've got a little over 2,300 or so less employees than when I started, and that's almost all from attrition," he said. "This is obviously a very tough economy and we're looking for as many other ways as we can to create efficiencies, but if we have agency eliminations or consolidations there may be some change in the workforce."
Ron Jordan, executive director of the Virginia Governmental Employees Association, said the possibility was not unexpected.
"I think the governor is being realistic in saying that anything is possible at this point," Jordan said. "I think he's just trying to alert everyone that everything's on the table, including potential layoffs, but I suspect he'll try to avoid that as much as he can."
The state ended the last fiscal year with a $544.8 million surplus, $310.7 million of which was excess revenue, the remaining $234.1 million accumulated through agency savings and balances.
A WRVA caller, who identified himself as a state employee named Vince, asked McDonnell when the workforce might see a cost-of-living increase.
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."
Pointing to escalating costs for the state pension plan, McDonnell has also hinted at further changes to it that could result in reduced benefits and higher costs for state workers.
This year, the General Assembly for the first time in nearly two decades required employees to pay 5 percent toward their state-managed pensions, but it reimbursed them with 5 percent pay raises. Last year, the state withheld $620 million in state Virginia Retirement System contributions to balance the budget.
McDonnell has suggested that reducing benefits may be necessary to shore up the ailing system.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement