State Unions Criticize Paterson Plan to Cut Thousands of Posts;
Say Workforce Would Bear Too Much of the Burden; Want Consultants Cut
By TOMMY HALLISSEY

Civil Service Employees Association President Danny Donohue called Governor Paterson's plan to reduce the state workforce because of a widening budget deficit "knee-jerk political solutions" and a "sham."

GOVERNOR PATERSON: Painful cuts necessary.

Mr. Paterson July 29 addressed the public in a televised speech about the dire economic situation confronting the state. "Everywhere I go, I meet people who are losing their jobs and their homes," he said. "I meet families forced to pay more for gasoline and for food, while their paychecks stay the same."

He said he was instituting a hiring freeze and called for state agency reductions that could eliminate thousands of jobs from the payroll.

'Our People He's Talking About'

The CSEA president fired back, saying, "When the Governor talks about families who can't afford to heat their homes, can't afford to put gas in their cars and can't afford groceries, he is describing his own workers and their families who will only be hurting more after he takes away their jobs."

The Governor said the budget gap had widened by $1.4 billion in the four months since he took office following Eliot Spitzer's resignation under fire. "Costs are steadily rising; revenues are steadily dropping," Mr. Paterson said. In the last year, state taxes on Wall Street profits from the 16 most-profitable banks dropped 97 percent, from $173 million to $5 million. Wall Street accounts for 20 percent of the state's revenue.

DANNY DONOHUE: Governor taking wrong road.

The Public Employees Federation also implored the Governor to save state jobs. "We understand there will be hardships for the citizens of New York State as a result of the economic downturn, but the state workforce or state services should not bear a disproportionate amount of the burden," said Ken Brynien, PEF's president. "State agency budgets have already been cut by a half-billion dollars, as steps were taken to restore the state's ability to provide services to its citizens. There needs to be a balance between cost-cutting and additional revenue."

Mr. Paterson, who said the three-year budget-deficit projections have ballooned 22 percent in less than 90 days, called an emergency session of the State Legislature for Aug. 19 to address the crisis. He wants legislators to consider $600 million of additional cuts. "In the interim, my administration will confront the following issues: addressing the size of the state workforce; further cuts to agency spending, and generating proposals for public and private partnerships for our state assets," he said.

CSEA: 'Relying on Failed Policies'

KEN BRYNIEN: Make rich pay fair share.

The CSEA union head contended Mr. Paterson was not thinking long-term. "At a time when we need better and bolder solutions, the Governor is relying on failed policies from the past," Mr. Donohue said. "There are better ways to address fiscal challenges than laying off working people in a troubled economy."

Mr. Brynien added that the state could also save nearly a billion dollars by reducing the use of overtime and consultants. "The proposal for public-private partnerships will not address the immediate fiscal crisis, and selling public assets has been a spectacular failure in many other states including Virginia, Texas, Florida and California," he said.

Mayor Bloomberg supported Governor Paterson's proposed cuts, which he termed "an urgent call to action."

"As we've seen in New York City, government budget cuts never come easy but can be done," the Mayor said. "The Governor demonstrated that he is ready to stand up to the interest groups that will no doubt protest before the Statehouse, just as they took to the steps of City Hall earlier this year."

Favors Surcharge on Rich

Mr. Brynien found hope in Mr. Bloomberg's and Mr. Paterson's July 28 meeting with Joseph Stiglitz, a Nobel Prize winner in economics. "An alternative previously suggested by Stiglitz to safeguard our workforce, yet address the economic downturn, is to place a temporary surcharge on the wealthiest New Yorkers," Mr. Brynien said. "People in New York whose income exceeds a half-million dollars only pay 6.5 percent of their income in state and local taxes. The rest of taxpayers pay 12 percent. We can address this issue by temporarily raising taxes on millionaires, which would generate up to $3.75 billion dollars a year."

CSEA said it was willing to work with Governor Paterson on big-picture solutions to the economic crisis. "Responsible, long-term solutions must include creative ways of increasing revenue instead of simply cutting jobs and gutting services," Mr. Donohue said. "We will not stand by for knee-jerk political solutions that diminish our quality of life and create more misery."

On July 30, the Governor said New York was in a recession reaching levels not seen since right after 9/11. He called for 7-percent reductions in all executive state agencies' budgets on top of the 3.35-percent drop he ordered when he took office in mid-March. The new cuts represent a $630-million reduction in 2008-2009 spending to close the projected budget gap.

Filling Only 'Essential' Jobs

Mr. Paterson also instituted an immediate hiring freeze. "Until further notice, only absolutely essential positions will be filled," he said.

The size of the state workforce grew just 497 jobs in the last year — to 200,251 — because of a 3.35-percent across-the-board agency spending reduction. The previous budget had called for 1,416 new hires.

"Our top priority is the job security of our members," said Mr. Brynien. "We strongly oppose cuts to the state workforce that could result in layoffs, and will take whatever action is necessary to preserve the job security of our members and the services they provide."