Options To Concessions Being Examined

Michigan Budget Director John Nixon, CPA, was on the receiving end of proposals from the state’s departments containing options for cost savings if agreements are unable to be reached with state worker unions regarding concessions. The 2011-2012 budget includes $265 million in overall reductions, with employee-related costs savings accounting for $145 million.

Announcements in regards to alternatives may be made as early as next week, as the new fiscal year begins October 1^st and one of the alternatives to the concessions being discussed is employee layoffs. A 30-day notice to state employees is required if layoffs are being used, bumping the timeline up to September 1^st.

In addition to layoffs, budget and department officials are reportedly examining the elimination of programs, cuts to travel and not filling current vacancies. A four-day work week, something Mr. Nixon utilized in Utah, is evidently not on the table; however, allowing some employees to work longer shifts and fewer overall days is being discussed.

posted by PAA Online , Friday, August 26, 2011 10:35 AM
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