Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, February 2, 1991 TAG: 9102020364
SECTION: VIRGINIA PAGE: A-6 EDITION: METRO
SOURCE: By BILL BYRD and BONNIE V. WINSTON/ LANDMARK NEWS SERVICE
DATELINE: RICHMOND LENGTH: Medium
Wilder said the state's budget deficit has swelled to nearly $2.2 billion - about $176 million more than anticipated - and proposed apparently unprecedented furloughs for all 110,000 state employees as a money-saving tactic. The furloughs would begin as soon as April, and continue through the first half of 1992, saving the state a total of $84.8 million.
Laura Dillard, a spokeswoman for the governor, said the unpaid leaves would be staggered to avoid crippling agencies, and said no employees - not even Wilder - would be exempted.
Dillard also said the governor expected that many employees would continue to work without pay during their furloughs. That includes the governor's staff. "We'll be working. I won't get paid but I'll continue to work," she said.
Dillard said Wilder would ask the assembly for permission to implement the furlough plan. The governor earlier had proposed a contingency plan for leaves of up to six days, saving about $26.4 million; the additional leave plan announced Friday would save another $58.5 million.
Dillard also said Wilder would order additional cutbacks in spending for selected agencies, but added that details of the cutbacks have not yet been developed. The cuts would save $58.2 million in fiscal years 1991 and 1992.
In a statement released by his office Friday night, the governor said a worsening economy, partly due to the Persian Gulf war, had dashed hopes that employee layoffs might be avoided. He said tax collections not only have failed to grow but actually are falling behind last year's levels.
Wilder also insisted that the assembly keep his $200 million "rainy day" fund intact to guard against further economic declines in the coming months. The assembly created the reserve at Wilder's behest last year, and he has strongly resisted suggestions that it be tapped.
The other proposals Wilder made Friday also face legislative review. Last month he proposed major revisions to the state's $26.2 billion budget for fiscal years 1991 and 1992, including $1 billion in bookkeeping maneuvers and revenue transfers and about $1 billion in spending cuts.
Although many legislators griped about the January plan, there has been little evidence that either the House Appropriations Committee or the Senate Finance Committee planned any major revisions to it. Both committees are due to develop their versions of the budget by Sunday night.
But as word spread Friday of the furlough proposals, many legislators reacted furiously, accusing Wilder of deliberately keeping the assembly in the dark and trying to short-circuit the legislative process.
"Amazing. Incredible," said Del. Clinton Miller, R-Woodstock, a leading GOP critic of the governor. "The information is just dribbling out. This is no way to run a business, much less run a state."
Wilder released the revised revenue estimates to reporters even before letters outlining them had been delivered to the chairmen of the assembly money committees.
Dillard said Wilder's plan calls for all state employees to be laid off for three days during the current budget year, ending June 30. Benefits would remain intact during the furlough, even though the employees will not be paid.
Keywords:
GENERAL ASSEMBLY
by CNB