Rendell announces 50 state layoffs
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HARRISBURG -- The layoffs of 50 state workers is a serious matter, but it's still not as drastic as cutting 1,000 or more.
Gov. Ed Rendell announced Monday that due to a $282 million deficit in the state's $28 billion 2010-11 budget, 50 layoffs, starting immediately, will be needed.
"It is with deep regret that we announce these furloughs," state Administration Secretary Christian Soura said. "The continued decline in state revenues and reducing funding from the federal government left us with no other options."
But 50 is a lot fewer than the 1,000 job losses that the governor had talked about three months ago, due to the lingering damage the recession has done to state income tax, sales tax, corporate taxes and other revenues.
And even 1,000 layoffs wasn't the worst-case scenario. If Congress hadn't given Pennsylvania about $600 million in Federal Medicaid Assistance Percentage funds in August, there could have been as many as 12,000 layoffs statewide, Mr. Rendell said. That figure would have included many public school teachers and workers in the 67 counties, because the state would have had to reduce the aid it gives counties and schools.
Mr. Rendell and the Legislature had been hoping for $850 million in additional Medicaid funds. Because the state didn't get the full amount, some layoffs still were needed at the state level.
But many more employees retired than originally expected, holding down the number of layoffs. The state also is eliminating 500 vacant jobs.
Mr. Rendell has reduced departmental spending by about $200 million, directing department heads to put money into reserve. He also has asked independent agencies such as the Legislature, auditor general and attorney general to reduce their budgets by almost 2 percent.
Mr. Rendell also has decreased, from $250 million to $200 million, the amount of additional funds for basic education this year. He is calling on the Legislature to generate $72 million more in revenue by taxing natural gas from areas of Marcellus Shale.
The layoffs are spread among eight departments with Corrections (19) and Health (15) the only areas losing more than 10 employees. The employees will work their last day Friday and receive up to 10 days of paid leave before the layoffs take effect Oct. 8.
Correction/Clarification: (Published September 22, 2010) Christian Soura is the state's secretary of administration. His title was incorrect Tuesday in an article about layoffs of state workers.
First Published September 21, 2010 12:00 am
