Governor: Buyouts not going well

By THEO EMERY • Staff Writer (Tennessean) • July 21, 2008 The state’s voluntary buyout program for state employees is not going as well as anticipated, Gov. Phil Bredesen said Monday, raising the specter of layoffs. Only about 1,400 state workers have sought the state’s buyout as of the end of last week, Bredesen said, well below the target of nearly 2,300 needed. The deadline for state employees to inform the state that they wish to take the package is Aug. 5. “The numbers are not stacking up yet, and the major impact of that is that it opens up the possibility of having to do something more unpleasant -- which is the form of actual layoffs -- later on in the year,” the governor said. Lower-than-expected revenues for the end of last fiscal year, as well as for the new fiscal year that started July 1, spurred the governor to seek about $64 million in savings through buyouts from state workers. Buyout packages were sent to about 12,000 state workers in mid-June, with a goal of seeking almost 2,300 to take the offers and voluntarily leave the state payroll. A hiring freeze is also in place. Bredesen said he had expected too many applicants for the buyouts, not too few, and that he was surprised that applications have so far fallen short of expectations. He said the worsening economy could be a factor. “Maybe because of the economic conditions, not as many people are taking it,” he said. The governor had originally expected to reduce the payroll by just over 2,000 state jobs, but that number grew as department heads reviewed where to make job cuts in their departments.

State workers must wait to receive buyout plan

Packets set to go out week of June 16
By LUCAS L. JOHNSON II • Associated Press • May 31, 2008

More than 11,700 state employees will have to wait almost two weeks longer to receive a buyout plan expected to save nearly $64 million amid a shortfall in the upcoming budget year, Finance Commissioner Dave Goetz said Friday.

He told reporters the informational packets are now targeted go out the week of June 16 instead of June 6.

"This is a very complex process," Goetz said. "So in order to make sure that we're going to do it right, it requires significant legal review and quality control. To do that, we've had to delay slightly when the information will go out to employees."

Gov. Phil Bredesen is cutting $468 million from the spending plan that begins July 1 because revenue collections are projected to fall far below expectations.

The governor is hoping 2,000 employees will voluntarily accept the plan, which administration officials estimate will save the state
$64 million annually.

Goetz said he's confident the state will reach its goal.

"We have modeled it as much as we know how," he said. "We have brought in experts in legal and human resources areas to work with us, to give us a sense of if we're going to hit the mark, and they all do."

The packets include program details, application forms and information on benefits.

Goal: Cut work force 5%

With cash incentives, 18 months of health insurance benefits and two years of tuition to a state community college or university, the plans will be worth between $23,000 and $47,000, depending on a worker's length of employment, according to administration officials.

They have said workers near retirement and those with less than 10 years of service are the ones most likely to take the buyout. The goal is to reduce the state work force by 5 percent, but layoffs will begin in January if enough workers don't accept the package.

The deadline to respond is Aug. 5. Starting Aug. 11, workers will be notified whether they've been accepted into the plan.

Goetz said a Web site, call center and special e-mail address will be set up to provide information and field questions from workers. Administration officials will also host a series of town hall meetings across the state.

"We will be doing all we can to communicate and explain what will be a fairly complex set of documents," Goetz said.

The cuts to the state work force represent less than half of the growth in state employees since Bredesen took office in 2003.

The state employed 41,990 full-time workers in 2003. Since then that number has grown by 5,089 workers, or about 12 percent.

For the most part, the voluntary buyouts have drawn the support of the Tennessee State Employees Association and lawmakers.

"The governor is doing everything possible to make government smaller in way that makes sense both for the employee and for the taxpayer," said Sen. Andy Berke, D-Chattanooga.