‘There will be layoffs’

Under the new bill being discussed in JFAC this morning that replaces the defeated SB 1222, there’s no more across-the-board 3 percent pay cut for state employees. Instead, statewide personnel costs are cut by 5 percent, but Gov. Butch Otter has discretion to reduce that where needed, with enough money from rainy-day funds to trim it to a 3 percent cut. Sen. Joyce Broadsword, R-Sagle, noted that any agency that can’t get to the 5 percent cut can appeal to the governor. “They can go to him for help,” she said. “I just want people across the state to understand that.” Rep. Wendy Jaquet, D-Ketchum, said she’ll oppose the new bill because it only trims agencies funded with federal or dedicated funds by 3 percent rather than 5 percent, potentially creating unfairness compared to general-fund agencies. Senate Finance Chairman Dean Cameron, R-Rupert, said there could be unfairness either way - if those agencies were held at 5 percent, but the governor reduced the cut for general fund agencies, it’d go the other way. “The governor has the discretion to use his best judgment, and I think we have to trust that he will do so,” he said.

Sen. Jim Hammond, R-Post Falls, said, “There is no way that we’re going to treat everybody fairly.” That’s just not possible, he said. Cameron said he hoped layoffs could be avoided - that’s why lawmakers first came up with the across-the-board pay cut - but he thinks the funding cuts as structured now will force some layoffs. “I’m here to tell you that I think there will be layoffs,” he said. “We hope, particularly in areas that affect the public health and safety, that those layoffs can be minimized.” That’ll be the duty of the governor, he said.