Senators were quick to respond Wednesday to the governor’s announcement about the possible layoff of 600 government workers, saying in an afternoon press conference they had already presented him with a plan to keep jobs and were "appalled" that he wasn’t moving ahead with it.
But the senators said they are still committed to pushing forward with the Stability Act of 2011 and will approve the bill during next week’s full session. Among other things, the bill calls for an 8-percent salary cut across the board for government workers making more than $25,000, the offer of an early retirement incentive to employees with more than 30 years of government service, and a full hiring-freeze, with exceptions made for certain departments and agencies that need the extra staff.
The salary cut would also apply to the governor, lieutenant governor, senators, commissioners and members of the judiciary, they said.
Sen. Carlton "Ital" Dowe, chair of the Finance Committee, explained later that the bill’s language is still "fluid," since senators are still meeting with various stakeholders, including local union members and Government Employees’ Retirement System officials, but should be ready to go by the time session convenes June 22.
Dowe, along with other senators, said the bill would pull in enough money to bridge the remaining budget deficit for the current fiscal year and put millions more toward the FY 2012 budget. The plan had been presented to Gov. John deJongh Jr. in a six-hour meeting Tuesday afternoon, but senators said that whatever agreement they thought had been struck about employees staying on the job appeared to have gone out the window by the time the governor made his announcement Wednesday morning.
Members of the Senate’s majority caucus each sounded off about the governor’s proposal at the Wednesday press conference. Using words such as "premature," "wrong," and "misleading" to describe his announcement, senators also said they were upset at having signed a declaration of intent after the six-hour meeting that now appears to be moot.
"We are at odds with the governor right now because the governor, I think, reneged on the plan we had agreed on yesterday not to lay off employees," said Senate President Ronald E. Russell, who added that the Senate’s plan would bridge the budget gap and keep everyone on board at least until Sept. 30.
Doing the math, Sens. Louis P. Hill and Usie R. Richards said the 8-percent cut – which would apply to any department or agency receiving money from the General Fund – would yield approximately $8.9 million, while the early retirement incentive could bring in as much as $48 million.
"The governor knew full well that as he continues to make pronouncements that he wanted to lay off employees … the Legislature was prepared and remains prepared to go into session to act on this bill," Richards added.
Richards’ remarks were echoed in part by Senate Majority Leader Celestino White Sr., who asked the governor to consider rescinding his decision about the layoffs since the Senate will act on the bill next week.
"The governor’s proposal is a cut of 600, our proposal is everybody stays," White said. "Governor, we ask you to hold. We know you are listening in. Please move away from your stated position. The gap will be realized with the passage of the Stability Act."
Senators did not mention how they would act on proposed legislation included in the FY 2012 budget submittal, which also calls for unpaid holidays and a .5-percent increase in gross receipts taxes. Both proposals were submitted by deJongh months ago as part of an austerity package to reduce the deficit, but senators said at the time that they were opposed to the holidays, and instead enacted a .5-percent gross receipts taxes instead of the original 1-percent the governor had proposed.
Present during the press conference were Sens. Dowe, Hill, Shawn-Michael Malone, Janette Millin-Young, Richards, Russell, Sammuel Sanes, Patrick Simeon Sprauve, White, and Alvin L. Williams.
Sen. Alicia "Chucky" Hansen participated by phone.
