State layoffs imminent to avert budget crisis

Significant layoffs of state workers are imminent in the face a budgetary crisis in a recessionary economy.

“There will be a significant change in the number of people employed by the state,” Governor Phil Bredesen told reporters. “We are not talking about just 20 people.”

The governor said in an address to several hundred members of Nashville Chamber of Commerce “We must change the personnel situation Tennessee. It will be done with great sensitivity to the needs of the work force.”

Jim Tucker, director of the Tennessee State Employees Association, issued a statement that, “We feel it is time to use the ‘Rainy Day Fund’ --- it just makes sense to use some of it to keep the ship of state on course.”

The governor said, “I don’t intend to touch the rainy day fund for this year, other to close book.” He may look to part of the $1.6 to $1.7 billion in reserves but won't use reserves for “truly recurring expenses” since to do so would "just defer the problem."

A promised state employee pay raise is off the table, according to Bredesen. “I wouldn’t lay somebody off and give somebody else a pay raise. There are going to be some cuts,” he said.

The anticipated personnel cuts will be spread across all departments except K through 12 education. However, Bredesen said he no longer expects his proposed pre-K expansion should be fully funded.