WCAX.COM Local Vermont News, Weather and Sports-Vermont Administration Unveils Budget Counteroffer
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Montpelier, Vermont - March 11, 2009
A battle between the Douglas administration and the state employees union is building over layoffs and job cuts. The administration says without concessions by the union, 600 employees will have to be laid off. But Wednesday, the administration said there IS a way to avoid layoffs -- if the union agrees to take a pay cut.
The administration counterproposal follows the union's original offer to take a freeze in pay and cost of living adjustments, and do away with a wellness program. The administration says that's fine -- they'll agree to it -- but that it's not enough. The administration Wednesday came back with more, including a proposed 5 percent pay cut for all state employees who make over $30,000 a year.
Administration secretary Neale Lunderville released the counteroffer at a news conference. He told reporters that the union offer saves a bit more than $4 million -- not enough. The administration says savings of $17 million is needed to avoid layoffs. The counteroffer includes a 5 percent pay cut for state employees making more than $30,000 a year.
Lunderville called it a fair proposal. "We do share the sacrifice of this equitably across all the workforce, exempt and classified," he said. "We're all in this together. This is not an us and them scenario. We have to find these savings to make state government sustainable."
Lunderville said layoffs can be avoided altogether if the union would accept the counterproposal, including pay cuts. Without the pay cut, he said layoffs could not be avoided, but could be reduced from 600 to 320.
One major administration proposal is to close the Saint Johnsbury prison -- and lay off 67 Corrections workers. The Department of Children and Families would lose 40 workers. Even the thought of cutting a total of 320 workers left one top manager upset. Jim Reardon, the state Finance & Management Commissioner, said, "This is a very difficult morning for me and one that I will remember for my entire career in state government. When you have to notify good hard working people that their jobs are slated for possible elimination."
Union officials watched the news conference but declined comment. Later VSEA director Jes Kraus said the union will prevail on the legislature to come up with a solution with no layoffs -- and no pay cuts. He said the VSEA bargaining units most likely will reject the administration counteroffer.
"I think there are a lot of ways to solve the problem without having to resort to laying people off," Kraus said, "without having to shift additional burdens to the unemployment line and other services that are needed."
The VSEA is expected to consider the administration's counteroffer but union leaders left no doubt that they'll take the fight to the Statehouse, where the legislature comes back from recess next week.
Without an agreement to trim labor costs the full $17 million, the administration is expected to move ahead with plans for 320 layoffs, plus the union's original offer for a pay freeze. Again, those would take effect this summer with the new fiscal year that begins July first.
Andy Potter - WCAX News
