Gov. Bob McDonnell is not ruling out state employee layoffs next year, he said this morning on WRVA radio, adding that pay increases are unlikely.
McDonnell, who has already asked all the state’s agency heads to make recommendations for potential cuts, warned: “The time for belt tightening is far from over.”
The governor also hinted at the possibility of entire departments being eliminated, noting that his government reform commission is working on a series of ideas for efficiencies.
Asked by host Jimmy Barrett if layoffs could be a part of this year’s budget, McDonnell replied: “I hope not.”
He added: “We’ve got a little over 2,300 or so less employees than when I started and that’s almost all from attrition … but, you know, this is obviously a very tough economy and we’re looking for as many other ways as we can to create efficiencies, but if we have agency eliminations or consolidations there may be some change in the work force.”
The state ended the last fiscal year with a $544.8 million surplus, $310.7 million of which was extra revenue and $234.1 million accumulated through agency savings and balances.
A caller named Vince, a state employee, asked when the state’s workforce might see a cost of living increase. McDonnell noted that he gave most employees a one-time 3 percent performance bonus last year, but said the possibility of a true pay raise was unlikely as part of his forthcoming budget.
“I’m very concerned about the unpredictability of what’s going on in Washington and its impact on our revenues and so I will do the best I can to take care of you, your family and others,” he said, “but there are still uncertain times ahead and I don’t believe we’re going to have a sustained pay increase this year.”
(This has been a breaking news update. Check back for more details as they become available. Read more in tomorrow's Richmond Times-Dispatch.)
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