Union Reaction Mixed On New State Budget Cuts

GOVERNOR PATERSON: No state layoffs planned. State Budget Director Robert L. Megna Oct. 6 told reporters that state agencies would have the option to offer more severance packages to state employees if they could not otherwise reach Governor Paterson’s targeted 11-percent budget cut.

The Governor ordered $500 million in current-year agency spending reductions to help cope with a mid-year deficit approaching $3 billion. These cuts are in addition to the approximately $1 billion trimmed in the wake of lost tax revenues from the Wall Street crisis.

Save in Non-Personnel Areas

“Our intent is for agencies to find savings in non-personnel areas,” Mr. Megna said in a conference call.

“What we are saying to the agencies, again, is if you think you can’t reach your savings target through cutting services, you can use severances,” he said. “If they cut staff through attrition, we are comfortable with that.”

DANNY DONOHUE: Critical of cutback plan. Mr. Megna added that there would be no new layoffs under this plan.

Public Employees Federation President Kenneth Brynien, who represents professional, scientific and technical employees, endorsed the Governor’s plan to increase severance packages.“ We welcome the call for flexibility in the Governor’s efforts to broaden the severance buyout and voluntary work reduction schedule,” he said.

Still, the biggest state-employee union, the Civil Service Employees Association, blasted the cuts, saying, “lives will be put at risk and services will be undermined.”

‘Poor Management, Bad Policy’

CSEA President Danny Donohue said in a statement, “Governor Paterson’s action today directing another 11-percent across-the-board cut in state operations reflects poor management and bad public policy. State Executive Branch operations account for less than 10 percent of the total state budget, yet this is the only area the Governor continues to target for cuts.”

BARBARA BOWEN: ‘A stunning misjudgment.’ He continued, “Meanwhile the Governor has not addressed the problem of top-heavy management in state operations: only about 50 Management- Confidential personnel were approved for the administration’s buyout plan while thousands of lowerpaid positions held by people who actually deliver frontline services to the public every day have been eliminated by attrition and reduction.”

Mr. Brynien took a different tack in his statement saying that all of the necessary savings could come from cutting the favorite union target, consultants. “The state can achieve much of the $500 million in current-year agency spending reductions simply by setting specific agency targets to cut the use of consultant contractors,” he said. Mr. Megna’s letter mentioned cutting consultants as one of many areas that could be trimmed.

PSC: CUNY Cuts Devastating

The hardest-hit agencies would be the largest ones, such as the State University of New York and the Department of Correctional Services, because the cuts are proportional to size. SUNY faces a $90-million cut to its budget this year alone. Thirty-six percent of the total cuts would affect higher education, including the City University of New York.

“Lowering the boom on higher education at a time when people are pouring in to the public colleges is just wrongheaded,” Professional Staff Congress President Barbara Bowen said in a phone interview. “The cuts will be devastating. I think it’s a stunning misjudgment.”

She said the PSC had urged the Legislature to head off the cuts, notwithstanding the Governor’s claim that he could impose them on SUNY without legislators’ consent.

Correctional Services faces a morethan $69-million cut to its budget at a time when inmate levels have decreased and are expected to drop further since the reform of minimum sentencing in drug cases. New York State Correctional Officers and Police Benevolent Association President Donn Rowe said he could not comment on the proposed cuts because he had not yet been briefed on the matter.

Ravitch: Absolutely Necessary

Mr. Megna also asked Commissioners to submit zero-increase budgets for next year that would fall in line with the 10-percent midyear reduction from last year’s budget.

Lieutenant Governor Richard Ravitch said, “These reductions are absolutely necessary to achieve our ultimate goal of reducing the deficit and getting New York back on firmer financial ground. However, as Governor Paterson has said time and again, these reductions are one part of our overall plan to address our economic crisis.”

Mr. Paterson said he would work with the Legislature to enact additional saving to close the current year deficit.