July 8th, 2009

Gov. Rendell announced yesterday that up to 800 state employees could be laid off due to Republican lawmaker’s insistence for spending cuts and the unions failure to accept rolling furloughs, reports the Associated Press.   The executive director for the state worker’s biggest union explained that they could not accept the furloughs because they involve office shutdowns which are disruptive to government.

“I have not seen a mandate that there has to be 800 people leaving,” said Fillman, who heads Council 13 of the American Federation of State, County and Municipal Employees. “So we’re hoping the secretaries will use a more surgical cut.”

Amid partisan standoff that has left the state government without a budget for a week, Rendell also said he plans to ask the largest vendors to continue providing services while the state is barred legally from spending money to pay most of its bills. They would be paid in full once a budget is approved, he said.

So far, state government operations are continuing, but no agreement between the Democratic governor and the Republican-controlled Senate is in sight, even as Rendell said he believes the sides can close the state’s multibillion-dollar budget deficit by another $200 million or so.

As he looks for more places to cut spending, layoffs appear inevitable, Rendell said. Pink slips would go out when the budget is passed, or perhaps even sooner, he said.

The latest cuts include trimming the Legislature’s budget, development incentives for private companies that agree to expand in Pennsylvania and workers from human services programs, Rendell said. Laying off 800 workers will save state government less than $25 million, Rendell said.

Rendell has proposed a $28.8 billion spending plan that would require tax increases, including a 16.3 percent boost in the personal income tax.