Furloughs become trendy for states

PROVIDENCE, R.I. (WPRI) - When it comes to running a budget deficit, Rhode Island is certainly not alone. According to the Center on Budget and Policy Priorities, only Montana and North Dakota are free from budget shortfalls plaguing the rest of the country.

Rhode Island Governor Donald Carcieri said he has tried several options to plug the near $70 million hole, from unpaid days at work for all state workers, to state government shutdown -- each blocked by state labor unions.

Rhode Island Supreme Court Justice Maureen McKenna Goldberg handed the unions a temporary victory Thursday with a stay on the first of 12 state shutdown days scheduled for September 4th. The full court will consider the dilemma on the 11th.

According to the National Conference of State Legislatures, though, other states that have attempted furlough days have had better luck pushing them through.

In all 20 states have proposed furlough days, so far 12 have enacted them.

The research shows the more extreme measure of lay-offs has been attempted in 21 states, including Rhode Island. So far, 15 states have taken the action or begun the process.

The lay-off process, according to Carcieri spokeswoman Amy Kempe began Friday morning.

"It's a laborious process," Kempe said.

Kempe said the governor has also enacted a hiring freeze. The governor said furlough days are a far better option than these extreme job actions.

In fact, furlough days have become more popular as a political alternative to lay-offs in many states. But Executive Director of business-backed Rhode Island Public Expenditure Council John Simmons says furloughs are just a fiscal flash in the pan.

"Furlough days are a one year issue," Simmons said. "The more structural basis is either permanently reduce the cost of employees or the number of employees."

Simmons said the decision by the Supreme Court, especially if it becomes permanent, may force the governor to make the hard decisions that are inevitable.

"Unless there are structural changes in the cost of employees; that's the health care and pensions, there has to be a reduction of personnel."