Workforce Reduction Plan

DAVID A. PATERSON OPERATIONS

GOVERNOR

TO:

Agency Commissioners

FROM:

Dennis Whalen

SUBJECT:

Workforce Reduction Plan

DATE:

March 24, 2009

DENNIS P. WHALEN DIRECTOR

OF

STATE

As you well know, New York is facing an unprecedented fiscal emergency and record budget deficits. Governor Paterson has said that addressing this crisis will require reductions in every area of state spending. In October, Governor Paterson called upon state employee unions to partner with the state to reduce costs. His goal in seeking labor concessions was to achieve necessary and critical savings while avoiding large-scale layoffs in a difficult economic climate. The Governor has stressed that we all share the responsibility to be accountable to the taxpayers of New York, and this includes closing an historic budget gap through shared sacrifice. Unfortunately, the labor organizations representing state employees have rejected all of the savings options put forward by the Paterson administration. As a result, the state is left with no other option to achieve needed savings other than implementing a Workforce Reduction Plan. This plan is expected to result in a state workforce reduction equivalent to approximately 8,900 employees. This is not a decision that has been reached lightly. However, given the fact that savings through labor concessions were not achieved, Governor Paterson was forced to make this difficult decision for the good of the entire state. The Division of the Budget (DOB) is finalizing a Budget Bulletin that will provide a protocol and timetable for the Workforce Reduction Plan. You will receive this bulletin within the next week. My office will be following up with you in the coming days to discuss further steps necessary to implement these savings. Thank you.