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June 7, 2007

Update: Governor seeks wage freeze, staff cuts

PROVIDENCE -- Governor Carcieri today called for cutting 1,000 state employees and seeking General Assembly approval for legislation to freeze all state wages at current levels to balance the budget.

It was a preemptive move for Carcieri, a Republican in a state where Democrats command wide majorities in the legislature, on the day before Democratic leaders are to unveil their budget proposal.

Carcieri said the employee reductions would save taxpayers $26 million in fiscal 2008 and another $40 million the following year.

That represents hundreds of additional employee positions being cut from what Carcieri's original budget proposal sought earlier this year. That plan had recommended getting rid of 168 non-union and newly-hired employees by July 1, as well as eliminating another 214 jobs by outsourcing housekeeping and food services at the state hospital and veterans home.

Asked at a news conference today what happens if the legislature doesn't go along with today's employee-reduction proposal, Carcieri said: "I'm going to do it anyway."

The state is projected to be in a deficit of millions of dollars, and Carcieri says his plan today aims at making "fundamental reforms" to avoid future budget problems.

The governor "ruled out" using proceeds from the sale of tobacco settlement bonds -- drawing from the state's share of the national tobacco settlement. He spoke against it in a larger message that the state should avoid tax increases one-time fixes -- ''one-time gimmicks, he called them -- to balance the budget.

"One-time Band-Aids will not stop the hemorrhaging and will only exacerbate next year's problems," Carcieri said in remarks prepared for delivery. "It is time to take a long-term view and enact major reforms."

Carcieri did not mention that his original budget plan earlier this year called for the use of about $130 million in one-time fixes, including taking $63 million from this year's "rainy day" fund and $28.2 million in land sales.

Dennis R. Grilli, executive director of the union representing state workers, tore into Carcieri's proposals, saying in a statement that the governor is "more concerned about getting his pound of flesh than creating sound public policy" and doing so "at the expense of our veterans and our most frail, vulnerable citizens."

"We sat across the table from the administration and listened to their suggestions, and negotiated in good faith. We offered millions of dollars in potential savings in order to help the governor balance this difficult budget," said Grilli, who heads up R.I. Council 94. "Through these savings, we gave him a great opportunity to avoid laying off hundreds of hard-working state employees, and he returned the favor with treachery.”

-- projo.com staff writer Michael P. McKinney, with reports from Steve Peoples of the Journal State House Bureau and Journal archives

Lawmakers, needing to close an estimated $300-million deficit projected if taxes and state services remain at current levels, have had different ideas. The House this week approved H-6473, which authorizes raising $195 million by selling part of Rhode Island's future payments from the tobacco settlement.

That is $35 million more than Carcieri's office projected in November that the state could raise.

House Finance Chairman Committee Chairman Steven M. Costantino, D-Providence, has said he planned to move $67.5 million from sale of the bonds previously designated for transportation projects to help close the budget.

That aims to close a hole created last month when state leaders learned they would not get an expected $100-million settlement from insurance company American International Group.

At the same time there is a deficit, lawmakers have given out money for various projects in communities -- $2.3 million in small grants -- that can be popular among their constituencies.

Today's proposal by the governor also calls for:

-- Renegotiating the health-care plan used by state employees by increasing the co-pays those employees would have to make at doctors' visits, emergency room visits and for prescription drugs.

-- "Putting out to bid every state service that could possibly be performed more efficiently by the private sector." The governor will form a Competition in Government Task Force to review services where that could possibly work.

"Being well run means having a government that delivers quality service at a price our taxpayers can afford, and which is sustainable over the long-term," Carcieri said in remarks prepared for delivery. "That is not the case today."

Posted by Mike McKinney  at 6:22 PM | Permalink

Comments

Carcieri needs to realize that the level of state employment is the lowest it's been in decades.

That being said, his ass should be tossed out on the street. He's bad news and always attacks state employees first.

DoctorYes | June 7, 2007 4:09 PM link

Go Gov! Crack the whip and get all these dem's in to shape. Outsource everything you can as long as it is at a savings to tax payers. RI's largest employer SHOULD not be Rhode Island!

Concerned Citizen | June 7, 2007 4:43 PM link

That concerned citizen should see a shrink. Maybe we should privatize the governor and his administrative staff and fill those positions with zoo animals. At least they demonstrate some intelligence. Lou

lou | June 7, 2007 5:16 PM link

ONLY 1,000?? Well, I guess it's a start! Way to go, Gov. You weren't elected to sit back and let this state go down the toilet. You've got my support!

Dear General Assembly, do the right thing for a change and work with the Governor and earn you pay. Heaven knows you owe the taxpayers!

Jake | June 7, 2007 5:52 PM link

All the news lately has been about the abuse that is going on in the private sector that provides services to RI in lieu of state employees. The service industries must be salivating over future contracts with the state. The potential for contracts that are inflated or politically obtained is possible. It could end costing more in the long run. Everyone likes to dump on state employees, but the alternative could be worse.

phyllis | June 7, 2007 6:16 PM link

Maybe the Governor and Jake can take the same ride down the tiolet. Bev Najarian can man the flusher! Lou

lou | June 7, 2007 6:37 PM link

why not cut the spending on cash assistance & the medical assistance. You might as well call all people receiving assistance state employees because it's coming from state money. at least state employees are working for their money.

rick | June 7, 2007 6:40 PM link

Since the GA is reducing school aid to cities and towns, the GA should pass enabling legislation to allow school administration districts to be formed (by county, all state, etc.) so teacher, health ins, transportation and other contracts can be negotiated in a much more cost effective and less politically charged manner. Otherwise our property taxes will be even more unbearable.

Real Reform | June 7, 2007 6:47 PM link

where exactly would you start .... lets start from the top!!!!!!! dont these people still qualify for unemployment and then become a strain..... GO GOV>

who cares | June 7, 2007 6:54 PM link

Let's hope you 1000 cuts include unneccessary executive postions earning 100,000+ salaries!

erin | June 7, 2007 7:03 PM link

Why has he not donated his salary, including benifits to help alleviate the budget crunch.
With a pension of over a quarter of a million a year[ and whatever he managed to grab from Old Stone,etc] he does not need it.
Romney did it, why can,t he?
He will say it wouldnot make any difference. But it would come close to a million or so for the time he has been in office. A million here, a million there and before you know it----

D. Walsh | June 7, 2007 7:56 PM link

This is the most agressive positionn the governor has taken and it is in the best interest of all of the taxpayers of Rhode Island and I comend the governor for taking a buisnes stance and not a political stance!

Dennis | June 7, 2007 7:58 PM link

I am a 48 year-old state worker and a widow with two boys. I make a whopping $30,000 per year and find it hard to make ends meet. Now I have to worry about losing my job. The governor was quoted not too long ago as saying "the average state worker makes $58,000". I would like to know where he gets this figure from.

Why don't we start with the Governor's wages and work down--just a percentage of his salary, along with all his workers, would probably fix the budget, instead of cutting off the lifeline of 1000 people.

CMT | June 7, 2007 8:15 PM link

HOw can the governor think about cutting 1000 jobs yet still be taking bids from temporary employment services to fill positions. I am usually behind Don Carcieri but I think he has flipped his wig this time

Steve Micke | June 7, 2007 8:19 PM link

Bless you, Governor, if you don't clean-up this corrupt--"Everything is up for grabs"--state no one else will!

Joan | June 7, 2007 8:19 PM link

As Donald Trump says ... "It's nothing personal .. it's just business." Rhode Island spends more than it earns. Governor Carcieri is just trying to restore some fiscal sanity. The General Assembly finally need to show some courage and follow the Governor's lead. If they don't the state will continue to hemorrhage money and be headed down the road to bankruptcy (then nobody will get their pensions!).

Stressed Taxpayer | June 7, 2007 8:33 PM link

It's about F'n time.Rhode Island does not need all these state employees.For those who may get laid off.Deal with it.Everyone else in the private sector can lose thier jobs at any time.
I'll even help you out.In this paper and many others there is a section called "Help Wanted".In that section Employers are looking for Employees to help maintain thier bussines.It is very helpful.

I'll use my real name (Ken Atkinson,NP) | June 7, 2007 8:51 PM link

Way to go Carcieri, and don't back down on this one.

The fact that state government is the lowest it has been in decades has no bearing on current or future decisions to cut state government. The question is whether or not it is still bloated, inefficient, and wasteful. The answer is yes.

The sense of entitlement the state employees have about their jobs and benefits is outrageous. Do what is right for the taxpayers, and cut those jobs.

Real Taxpayer | June 7, 2007 9:07 PM link

Is it true Mrs. Carcieri is on the State payroll for $90K a year?

not happy | June 7, 2007 9:19 PM link

Cutting 1,000 state jobs is a legitimate policy decision. But like all decisions, there are consequences. If the people don't mind the longer lines at the DMV, the extra delays with road repairs, the increased risk from bad food with fewer health inspectors, fewer fire safety inspections, holding fewer banks, mortgage lenders, and insurance companies accountable to their customers, and less services overall, then that's the people's right. Just remember, you can't have your cake and eat it too...

YankRI | June 7, 2007 9:19 PM link

ok here we go again, kill the middle class, veterans and hospital workers. Don't ok a casino in the state because after all RI doesn't condone gambling. By the way Gov, when was the last time you went to Twin Rivers or Newport Grand?? PowerBall, The Daily Numbers. Why not try eliminating all the extra state vehicles on the road used by employees for personal vehicles. How about getting rid of all the gas guzzlers and downsizing to i don't know maybe a Honda or Ford Fusion, something with good gas mileage Gov. I sure didn't vote for you and I am glad because you are not working for the people that voted you in or are you? They are deffinetly not every day middle class working people.

fed up | June 7, 2007 9:42 PM link

You go Govenor! You can start by firing all you friends that you made up positions for and are making six figures. Start firing from the top not the little people that service the public.
All you do is cater to the wealthy you could care less for us hard working citizens who are tring to make ends meet.

GG | June 7, 2007 9:51 PM link

Why is RI always in debt? Why does RI never have any fun places to go? "Spin wheels" gets boring after several losses in a row.

steven | June 7, 2007 10:04 PM link

The Democrats have bankrupted this state and when push comes to shove blame the Republican Governor. Smoke & mirrors can only last so long. I applaud the Governor for walking the walk!

Paul | June 7, 2007 10:43 PM link

It's very easy to criticize when you're not a young Dad sitting waiting to hear if it's your job that is going to be taken away from you. I'm a concerned taxpayer, but I also am a hard working (non-union) State employee. Please sit in my seat for a few minutes. It's not our faults that the people who manage State government got themselves into this position.

James | June 7, 2007 10:44 PM link

Let's Count how many of the 1,000 come from the Governor Office's personal Budget -- including his wife's personal secretary...I'm guessing none...

Chris | June 7, 2007 10:46 PM link

Govenor you are a total moron you created this deficit maybe your job should be privatized. Before you got into office there was a state surplus with the state having more state employees. You just had no clue or control over any of your administrators and they ran wild with the states blank checks. Admit it Don you couldnt run a one man hot dog stand!!!!!!!

Steve | June 7, 2007 10:55 PM link

Good for the Governor. He developed a workable plan. Instead of challenging him, the legislators and the union thugs should suck it up. If they don't, they're going to have to answer to us, the over-taxed citizens of this state.

Arno | June 7, 2007 10:55 PM link

Scapegoating state employees is such bad public policy. We are being polarized by this Governor at a time when we should be working together. The Governor is not running a fortune 500 company---- this is the state. The Governor's budgete was replete with ill thought cuts from both a sound fiscal and policy perspective. All the land sale proposals were one time fix its. Mindlessly and sophmorically cutting in one section of government inevitably leads to an increase in need in another. We have criminalized substance abuse and addiction and filled our prison with indviduals with substance abuse problems....while we don't build capacity in our substance abuse system. We cut services to children just at the time they need a little bit of help towards indpendence. We hire Directors from out of state who have not a clue about public service and how to manage responsibly for the public good. Directors who hire their cronies and friends of the Governor as consultants and high paid members of staff. Governor get your own house in order before you go for the sound bites!!!!

elizabethfry | June 7, 2007 11:01 PM link

This is obviously a result of less federal funding. BUT, by cutting these jobs, he is cutting employment, therefore cutting consumer spending. Why doesn't Carcieri take a pay cut? He was a millionarie before he took office.

So Sad | June 7, 2007 11:04 PM link

He can only cut money from State Employees--no one else. We are the only "employees" he controls. And how does he know that private workers will do as good a job at a more efficient wage. Come on --state workers do not deserve this sword hanging over thier heads to hide Dons poor fiscal management policies.

deb | June 7, 2007 11:26 PM link

My husband is a state worker and has not had a raise in 5 years...Honestly, would you work at your job and take not getting a raise for 5 years. Be honest...

Mary | June 8, 2007 12:09 AM link

Does this mean that instead of giving jobs to our state's residents directly, we will be outsourcing the positions to the "No bid" temporary service company that cost us taxpayers millions? As one that worked for a temp service in the past, the approx. 60% markup would be best put into our citizen's pockets, not the owners of an out of state temporary service.

Someone who's sick of waste | June 8, 2007 12:09 AM link

More of the fat needs to be trimed. 1000 is not enough. With the fat pensions and backed by the union, lay off 5000. The only way to save the taxpayer from the lazy, overpaid state workers.

Peter | June 8, 2007 6:21 AM link

Good job Gov!!! Now that will be 1000 unemployment checks being paid. You are a horrible leader. what have you done for anyone but your rich friends? As a vet I am appauld at how you cut our benifits and dont forget education cuts also. I guess we dont need to be smart in this state because look at you. you want to save millions? Re sign and let in someone that knows what they are doing.

rich | June 8, 2007 11:29 AM link

The governor's plans are ambitious and I support them as long as services don't suffer. The problem is that he will get too much resistence from the unions with court challenges to the already existing contracts and from the legislature to make it workable. We'll see.

Scott | June 8, 2007 2:36 PM link

I'm a state worker and I think people on welfair are making more money than I am and they get free health care.Thats what we should all do, go on welfare. I don't know to many state workers who are making over 50k a year and the ones I do know they are the ones they can fire, cause most of them are a waste.

Sick of RI | June 8, 2007 5:35 PM link

The fundemental question that all should be asking in Rhode Island is how to stem the flood of jobs away from the state. In the end, it is taxes paid by the private sector that support all the state sector jobs. If nothing is done about the tax burden on business, jobs will continue to leave the state (being # two in overall tax burden amongst the 50 states is not pretty). The result is a death spiral with the ultimate bankruptcy of the state. Labor needs to wake up to the reality of creating a competitive environment.

Tom | June 11, 2007 12:42 PM link

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