ARTICLE TOOLS
NASHVILLE — Gov. Phil Bredesen warned Monday his administration may be forced to lay off state workers next year because of the unenthusiastic response so far to the state’s $50 million voluntary employee buyout program.
“I certainly think it raises the prospect of, after the first of the year, of having to do some sort of a layoff,” Gov. Bredesen told reporters.
So far, only 1,400 out 12,000 eligible employees have signed up for a buyout. The deadline for accepting the offer, which includes cash incentives, is Aug. 5.
Gov. Bredesen and other officials hoped the plan would let them eliminate nearly 2,200 jobs — or about 5 percent of the state work force — without resorting to firing people.
“This is going to be a challenge over the next two or three weeks,” Gov. Bredesen said, noting he had been “surprised” by the lackluster response given the “great enthusiasm on some people’s part when we first announced it.”
In some instances, the state is getting too many applications from employees in certain areas targeted for reductions, the governor said. That actually leaves only about 1,100 or 1,200 applications that the state actually can accept, he said.
STATE BUYOUT
* Target: 2,200 employees
* Response: 1,400 employees
* Deadline: Aug. 5
Tennessee State Employees Association spokesman Chuck Rainey said the association’s executive director, Jim Tucker, believes it is “too soon” to make predictions about the success of the voluntary program because more employees will apply as the deadline approaches.
The administration this spring said it needed to reduce employment by 2,011. Citing falling revenues and the uncertain economic climate, the administration hopes the job cuts will eliminate expenditures of $64 million as part of an overall plan to cut $468 million from the budget that began July 1. The governor has been saying more recently that 2,200 to 2,300 employees actually are needed to accept buyouts to make the program succeed.
Rep. Tommie Brown, D-Chattanooga, said her “first priority” is to protect the “quality” of existing programs and services. The lawmaker said she has a “stack of complaints” from Chattanooga-area workers “who feel they have been targeted. They feel they (state officials) are trying to get rid of them.”
“I think we may have a problem, and I think people are not going to be that ready to run out the front door,” Rep. Brown said.
She said some employees are asking, “‘By the time the stuff (offer) is taxed, what have I got when I don’t have a job? And then as the economy continues to weaken, why would I want to leave my job?’”
Earlier in the day, Gov. Bredesen acknowledged the uncertain economic situation may be discouraging workers from taking the offer. This spring, legislative leaders delayed the governor’s plan to use layoffs, if necessary, until January when the General Assembly convenes.
Rep. Gerald McCormick, R-Chattanooga, said, “You hate to have to lay off state employees, but we’ll have to balance the budget.”
He alluded to a recent Chattanooga Times Free Press analysis that showed the Bredesen administration has added about 5,000 state jobs since the governor took office in 2003.
“We may have to let some of them go, unfortunately,” Rep. McCormick said.
None of the governor’s immediate staff, who are political hires, are being targeted for voluntary buyouts, although the state is eliminating two vacant positions, including a chief-of-staff slot.
Officials said the buyout targets employees who have been with the state for a minimum of six years. The governor took office in 2003.
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