Legislature may expand furloughs for state workers

Some state employees may still be out of work later this year, but GOP lawmakers decided Thursday that unpaid furloughs of up to 11 days — equal to a 4 percent pay cut — should be an option to save jobs.

Gov. Jon Huntsman Jr. told the Deseret News the effect of the state's $1 billion budget shortfall on state employees could be reduced even more by raising both motor vehicle registration fees and cigarette taxes, a total of about $100 million.

Neither House nor Senate Republicans were willing to back the $20 increase in motor vehicle fees that would raise $50 million. And neither caucus even considered the $1.50-a-pack cigarette tax that would bring another $50 million to state coffers.

They did, however, each agree to allow furloughs for state and higher-education employees of up to 11 days in the upcoming budget year that begins July 1 and up to five school days for public education employees. The unpaid leave amounts to a 4 percent salary cut.

At the beginning of the legislative session, lawmakers were told up to 3,100 state employees could lose their jobs. Furloughs or small pay cuts could save more than 1,000 employees from getting pink slips, House Speaker Dave Clark, R-Santa Clara, told his caucus, which is open to the public.

It was an emotional scene at times in the crowded House caucus room, with House Budget Chairman Ron Bigelow at one point choking up when he talked about "looking into the eyes" of state employees who may lose their jobs because Utah faces around $1 billion in budget cuts.

"We need to feel the reality of what we are doing," Bigelow said.

Senate Republicans, who caucus behind closed doors, came to the same conclusion, said Senate Budget Chairman Lyle Hillyard, R-Logan. Hillyard said he'd heard from many state employees who would rather work less than see jobs cut.

The Senate GOP also decided to let state employees absorb a $19 million increase in health insurance costs, whether through increased premiums or higher co-payments, Hillyard said, but wanted more time to consider a proposal to reduce the state's contribution to employee 401(k) plans.

The proposals come after weeks of work by a special group of House and Senate members of both parties. They recommended that state agencies and universities have the authority themselves to decide how to trim $136 million from employees' pay, and some may decide on furloughs as preferable to layoffs.