791 state employee layoffs expected in budget cuts

DES MOINES -- Gov. Chet Culver has released a wide-ranging list of proposed state government budget cuts that calls for laying off 791 state government employees and leaving another 529 positions vacant.

The preliminary plan, which does not include the Board of Regents, statewide elected officials, and the Legislative and Judicial branches, also is expected to include unpaid furloughs and service reductions.

“It is very important to note that this is the starting line, not the finish line, “Culver said. “My obligation is to keep our budget balanced and my goal is to do everything we can to preserve essential services and minimize layoffs.

The plans released today are to be finalized by Wednesday, Oct. 28.

Leaders of executive-branch departments and agencies have spent nearly two weeks identifying ways to chop up to $565 million in general-fund spending after state tax collections took a nose dive due to the effects of a worldwide recession.

The governor has ordered a 10 percent across-the board reduction in state general-fund spending to cover the unexpected revenue decline while leaving a cushion of about $150 million as an ending balance next June 30 in anticipation of another difficult budgeting cycle in fiscal 2011.

Culver aides indicated this week the governor likely will ask leaders of the state employees' unions to reopen collective bargaining talks aimed at negotiating some contract changes that could help save some jobs and free up money to fund government priority areas.

Last week the governor announced he was voluntarily cutting his annual salary by 10 percent and requested that top agency directors do the same.

Culver said he disagrees with some recommendations.

“These cuts have a very disproportionate impact on public safety, an area I vowed to protect,” Culver said. Of the 791 layoffs, 515 are in the Department of Corrections as well as 262 of the 530 current vacancies. The Department of Public safety has recommended 53 layoffs, but was able to prevent further cuts by securing a $4 million federal grant, a Culver administration official said.

He also opposes cuts in services to children and vulnerable adults. The Department of Human Services has proposed 79 layoffs.

Leaders of the legislative branch last week announced they were cutting their fiscal 2010 spending by 10 percent – a move that would trim next year's legislative session from the normal 100-day run to 80 days beginning Jan. 11. The cutbacks include a pay freeze and six unpaid furloughs days for legislative employees.

Also, Iowa Supreme Court Chief Justice Marsha Ternus last week said some judicial branch employees can be expecting layoff notices as the court system looks to absorb a $16 million reduction in funding with a little more than eight months remaining in the current fiscal year.

Preliminary Departmental ATB Implementation Plans

Preliminary Plans All