Post by Torch on Mar 27, 2009 6:28:27 GMT -5
Busted budgets beyond our borders and how states are proposing to shore them up
Budget Barometer
Look for the state of Indiana to release its updated revenue projections in mid-April. Those forecasts will project the state's revenue stream through 2011. In the meantime, here are a few highlights from other states:
Alabama - The state's personnel board will allow financially strapped agencies to furlough employees up to 24 days a year to reduce payroll costs. Furloughed employees would lose pay, but retain their seniority, paid time off and health insurance benefits.
Michigan - Most elected state officials will see their salaries and expense accounts cut by 10 percent in two years. State officials will see a 10 percent slice in their office expenses. The state constitution prohibits changes taking effect until the next term begins in January 2011.
Nebraska - A proposed $20 million base cut translates into a loss of 437 state jobs. That computes to about 2½ percent of the state's full time workforce, excluding the state college system.
New Jersey - The governor has proposed $4 billion in spending cuts, representing more than 850 line items. Those items include state programs, rebates, pension payments and employee salaries. The largest of those cuts call for reducing $500 million in homestead rebates and another $500 million in pension fund payments. Another $400 million would be saved by freezing state salaries and implementing furloughs. Governor Corzine has said that if the furloughs and wage concessions are not accepted, he may have to lay off up to 7,000 of the state's workforce.
Florida - State lawmakers are so desperate to find money that they have looked at borrowing from the Florida Prepaid College Fund. This program allows families to invest tens of thousands of dollars to lock in present-day tuition rates for their future college-bound children. More than 1.3 million families are under contract with this program, which benefits about one of every 10 children in Florida.
Georgia - Not only are agencies seeing their budgets cut 10 percent, but about one-fourth of the state's workforce are looking at losing money. In the coming months, about 25,000 state employees will either be furloughed or forced to take off days without pay.
And finally, our neighbor to the west, Illinois, faces an $11.5 billion deficit. As if the state hasn't had its share of negative publicity, Governor Quinn has proposed to increase income tax from three percent to 4.5 percent. He is also calling for employees to take four unpaid furlough days and pay more for health insurance and retirement benefits.
Budget Barometer
Look for the state of Indiana to release its updated revenue projections in mid-April. Those forecasts will project the state's revenue stream through 2011. In the meantime, here are a few highlights from other states:
Alabama - The state's personnel board will allow financially strapped agencies to furlough employees up to 24 days a year to reduce payroll costs. Furloughed employees would lose pay, but retain their seniority, paid time off and health insurance benefits.
Michigan - Most elected state officials will see their salaries and expense accounts cut by 10 percent in two years. State officials will see a 10 percent slice in their office expenses. The state constitution prohibits changes taking effect until the next term begins in January 2011.
Nebraska - A proposed $20 million base cut translates into a loss of 437 state jobs. That computes to about 2½ percent of the state's full time workforce, excluding the state college system.
New Jersey - The governor has proposed $4 billion in spending cuts, representing more than 850 line items. Those items include state programs, rebates, pension payments and employee salaries. The largest of those cuts call for reducing $500 million in homestead rebates and another $500 million in pension fund payments. Another $400 million would be saved by freezing state salaries and implementing furloughs. Governor Corzine has said that if the furloughs and wage concessions are not accepted, he may have to lay off up to 7,000 of the state's workforce.
Florida - State lawmakers are so desperate to find money that they have looked at borrowing from the Florida Prepaid College Fund. This program allows families to invest tens of thousands of dollars to lock in present-day tuition rates for their future college-bound children. More than 1.3 million families are under contract with this program, which benefits about one of every 10 children in Florida.
Georgia - Not only are agencies seeing their budgets cut 10 percent, but about one-fourth of the state's workforce are looking at losing money. In the coming months, about 25,000 state employees will either be furloughed or forced to take off days without pay.
And finally, our neighbor to the west, Illinois, faces an $11.5 billion deficit. As if the state hasn't had its share of negative publicity, Governor Quinn has proposed to increase income tax from three percent to 4.5 percent. He is also calling for employees to take four unpaid furlough days and pay more for health insurance and retirement benefits.