This morning Governor Kulongoski announced several steps he is taking to reduce our burgeoning budget deficit. Prior to the public announcement, this information was communicated to executive management, presumably statewide.
For those who haven't heard, here's a brief rundown of the cuts:
- Reduce his own salary by 5%
- Pay freeze for state executives and managers
- No step increases
- No COLA
- Canceling the June 2008 pay step added for management
- Recoup the money from any managers who were already granted the additional step
- Unpaid furlough days, including for his own staff
In addition, the step increase for represented staff that was granted in the 2007-2009 contract is, "on the bargaining table." He also plans to veto attempts to tap the two state reserves for this budget cycle--which ends on June 30, 2009.
It is important to note that the cuts imposed are not for represented staff. For represented staff, we are in the midst of attempting to bargain new contracts. It seems certain that we will be asked to make similar sacrifices. Probably even more.
That the governor would start with such steps for management is, in my memory, unprecedented. It speaks to the truly dire straits we all realize we are in. More information will be forthcoming tomorrow morning with the update to the state quarterly economic and revenue forecast.