No Deal or No Deal

by: celtictiger

Fri Oct 30, 2009 at 16:33:34 PM EDT

Not only were these layoffs needless, but by rejecting VSEA's offer of furloughs and unpaid holidays, the Douglas Administration cost taxpayers almost $5 million!

Representative Mark Larson was quick to point this out to Finance Commissioner Jim Reardon when he testified at the Legislative Joint Fiscal Committee on Tuesday:

Rep. Mark Larson, D-Burlington, reacted to Reardon's report with sharp criticism. He said the state would be in a better position to cope with the looming budget pressures if the administration had accepted an offer from the Vermont State Employees Association that all employees take off four days without pay and give up three paid holidays.

Larson argued that taking the union's offer would have avoided layoffs and left for the next budget crisis all the options the administration used -- eliminating vacancies, taking savings from the health insurance program and asking departments to absorb more of the increase in the cost of personnel.

"Refusing to accept the deal that was put on the table has put us in a weaker place," Larson said.

BFP - 10/29/09/

Here's the math:

Laying off 25 state workers = approximately $1 million + using health plan surplus ($1.7 million) = $2.7 million

Accepting VSEA proposal = $7.4 million

$7.4 million in exchange for saving 25 positions seems like a pretty good deal for the State! There was never a provision in VSEA's proposal that precluded the Administration from eliminating the 133 vacant positions they used to meet their target. How does this make sense fiscally or even politically? Why would you pass up an offer that saves both jobs and money?  

When the Administration began eliminating federally funded positions last year, I thought they had lost their minds. I mean, isn't sending money back to DC a "reverse stimulus package?"

The Governor's latest actions continue to defy logic. How do you bargain with someone who would cut his entire workforce just to spite you?