Untitled Document

Reduction in personnel costs being considered
state's general-fund agencies
Impact on ITD employees still undetermined

From Wayne Hammon
Administrator, Division of Financial Management
I wanted to make sure that everyone knew exactly where the Governor stands on this issue:

The plan to lower the PC allocations in FY 2010 was first raised by members of the Legislature in early January. While not the Governor’s first choice, he did agree at the time to the PC reduction on the condition that the cuts not be made in a manner that would require an across the board reduction in salaries as had been proposed. This agreement was reflected in his recommendation on the federal stimulus funds presented yesterday.

The Governor strongly believes that agency directors (including constitutional officers) should be given the greatest flexibility possible in determining how to meet these cuts. His recommendation to the Legislature is that they set the budgets and then let our Executive Branch managers do their jobs in managing agency operations.

Because the Governor does not support an across the board salary reduction, he does not believe that there is any need to include either federal or dedicated fund sources in this reduction. Making additional cuts in these other sources of funding would only make a bad situation much, much worse.

Thanks for all your help.

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“We will not know for sure what the impacts are for the Transportation Department until the legislative process is complete,” said ITD Director Pam Lowe. “We will update employees as details become available.”