PEF shows state better ways to close
budget gap
By SHERRY HALBROOK
State employees are not the cause of
New York’s budget problems, and laying
them off or trying to take their pay would
be both unfair and unhelpful.
That’s the message PEF President Ken
Brynien presented to state lawmakers at a
February 10 hearing in Albany on the state
2010-11 Executive Budget proposal and its
potential effect on the state work force.
Facts over fiction
The Executive Budget calls for a net
reduction of the equivalent of 674 full-time
positions.
“This continues a two-decades-long
FACTCHECK—PEFPresidentKenBrynienmakesapointduringhisstatebudget
reduction in what the state spends on
testimonyFebruary10inAlbany.PEFLegislativeDirectorBrianCurranandPEFCivil
employee wages and salaries,” Brynien
ServiceEnforcementDirectorTomCetrinoarea
said. “Yet every year, some groups in this
“The average consultant performing work
a20
tright. — Photo by John Epting
Expand the voluntary severance
state call for an extra pound of flesh from
my members do costs the state $82.42 an
program. – In 2009, the governor proposed
state workers. These groups insist state
hour or $160,719 a year. That’s 62 percent
to eliminate 4,500 state positions by
agencies and the state work force are huge
more than the average $50.80 average
offering a $20,000 severance payment.
contributors to the state’s fiscal woes.”
hourly cost for equivalent state employees.”
However, only 1,200 positions were
Not only do the facts refute that theory,
eliminated, and 1,000 employees were
they support the opposite conclusion,
Better options
denied participation.
Brynien said. These facts include:
Brynien urged the legislators to reject
“At minimum, the severance should be
• New York has one of the smallest state
salary and benefit cuts, and restore funds
offered to the employees who were denied,
work forces per capita in the nation. Only
to allow the state to honor its contractual
which would save the state more than $52
six states have smaller state work forces
obligations. He asked they amend the
million in FY 2010-11. If the state
per capita than New York;
budget bill to continue the state’s
eliminated another 2,300 positions
• The state operations budget hasn’t
responsibility to pay Medicare Part B
through the severance program, meeting
grown since 2008. When compared to
premiums, instead of palming the cost off
the governor’s initial target, the state
every other part of the budget, state agency
onto the state health plan so enrolled
wou
budgets have grown at the lowest rate over
employees and retirees would share the
a20
ld save another $120M,” Brynien said.
Reduce state overtime costs –
the last 10 years;
cost with the state.
Understaffing cost the state more than
• In constant 2009 dollars, the amount
Brynien called on lawmakers to
$500M in overtime in 2008-09. Reducing
spent on state employees’ wages has fallen
preserve services and reject many of the
the state work force does not reduce its
by about $300M since fiscal year 1989-90,
proposals to close state facilities or reduce
workload. State agencies still must
an average annual decline of $15M;
their service capacity.
complete mandated work, and state
• Since 2008, the state work force has
However, he said, PEF supports some of
facilities must meet staffing levels required
been cut by 4,500 positions;
the governor’s cost-saving proposals such
for accreditation.
• If the governor’s Executive Budget
as:
were enacted, the state work force would
a20
As much as 60 percent of overtime
Allowing state and local governments
could be eliminated by hiring entry-level
be the same size it was 10 years ago, with
to a
more than 15,000 fewer positions than in
a20
mortize their pension payments;
state employees, saving at least $33.5M
Allowing NYSHIP to self-insure for
annually, or more than $100M over three
1994, in spite of a growing need for state
em
services; and
a20
ployee health benefits; and
yea
Certain proposed agency
a20
rs.
Increase state revenues – The state
• In 2009, PEF and the Civil Service
consolidations that would save a total of
should enact the governor’s proposed
Employees Association agreed not to
$10M.
excise taxes on cigarettes and on
oppose enactment of a new pension Tier 5
If the state work force must make still
sweeteners, bottled soft drinks, and their
that will save the state and local
greater sacrifices, Brynien recommended
base products. Together, they would raise
governments $35B over 30 years.
the
Brynien said blaming state workers for
a20
state:
an estimated $675M in state revenues.
Enact a consultant-reduction plan
Brynien also urged lawmakers to
deficits is just a convenient way to avoid
– The state should set a goal of saving
consider revenue ideas advocated by New
admitting to the real roots of the problem.
$375M annually by 2012-13 through
Yorkers for Fiscal Fairness that would
“Time and again, we’ve shown state
reduced dependence on private
generate billions of dollars annually.
workers provide a much better value for
consultants. Phased in over the three
“These savings will more than pay for
tax dollars than the high-cost consultants
years, this plan could save the state more
any restorations PEF is seeking,” Brynien
who too often replace them,” Brynien said.
Page4—TheCommunicatorMarch 2010
than $656M.
said.
PEFInformationLine:1-800-553-2445
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