Governor announced agency budget cuts; Union leaders meet with state officials to discuss impact, implementation of staff reductions, closings

Jan. 31, 2008 - Anticipating a gaping budget hole, Gov. Ted Strickland announced this morning the state's plan to cut agency spending by $733 million in 2008 - 2009.

Throughout the afternoon, OCSEA leaders and staff met with agency officials to learn more about the projected impact on bargaining unit employees.

Union leaders met earlier with officials at DRC, MH, MR, and ODJFS, and are scheduled to meet with the governor this evening. Continue to check back through the week, as we hope to have much more detail by Friday.

OCSEA is asking about implementation:

• How quickly will cuts roll out?

• How will staff reductions spread across the bargaining unit and management?

The union is also seeking more information about where and what kind of Early Retirement Incentives (ERIs) are being offered.

The governor had asked cabinet level directors to look for ways to save the state money in light of Ohio's dismal financial outlook, worsened by a sputtering economy and decreased tax revenues.

In response, agency directors submitted budget "recalibration" plans which included job cuts, reduction in operating expenses, and the closing of two state mental health hospitals, Cambridge and Dayton.

The state says its plan to reduce its workforce by 1,500 to 2,700 positions will be accomplished through attrition, vacancies that will remain unfilled, early retirement incentive plans, abolishments, and other reductions.

“I want every state employee to know how much I honor and appreciate the work they do every single day,” Strickland said, according to a press release.

“I know that the decision I’ve made today will be disruptive, frightening and painful for many of my fellow state employees. I want you to know that I would not have made any decision today regarding budget reductions that I did not feel was absolutely necessary for the good of the state and the people of Ohio. I will do everything in my power, and I know agency directors will do everything in their power, to support you during this very difficult time of transition.”

Most agency directors said they would "reorganize, restructure or consolidate operations in order to realize cost savings and operate successfully within reduced appropriation levels."

Strickland also ordered the following spending control strategies:

• a travel control policy limiting all out of country travel and all non-essential continental U.S. travel;

• a hiring control policy limiting state payroll expenditures and identifying all potential human resource cost savings measures;

• a personal services contracts control policy, restricting the execution of future personal service contracts and mandating a thorough review of all current personal service contracts in an effort to achieve savings through reductions in or elimination of such contracts;

• an equipment control policy stopping all purchases of new equipment, with the exception of equipment needed for health, safety or other similarly critical state functions.
  

See Related

Governor's News Release

Cuts by Agency (HTML)

Cuts by Agency (PDF)

Associated Press

Columbus Dispatch