Governor Rell Orders Hiring Freeze to Combat Revenue

 Slump, Anticipated Budget Shortfalls

(Listen to Governor Rell here...)

            Governor M. Jodi Rell today announced that because of continuing revenue shortfalls she has directed Executive Branch agencies to immediately begin a hiring freeze and asked the other branches of government to consider following suit.

            “New York and Massachusetts are facing multi-billion dollar budget holes, while Rhode Island has a shortfall in excess of $430 million,” Governor Rell said. “I am going to use every tool at my disposal to get our spending under control and avoid deficits if at all possible.

            “This week my budget office advised the Comptroller that personal income taxes and other tax revenues are continuing to fall well behind projections,” the Governor said. “In fact, personal income taxes are as much as $90 million less than we expected, while tax refunds are running more than $15 million ahead of projections. The bottom line right now is that we will need to pare down spending by about $53 million to break even when the current fiscal year ends on June 30.

            “The outlook for the next fiscal year is even more challenging,” Governor Rell said. “The Office of Policy and Management is projecting a shortfall of about $150 million for Fiscal 2009. Rising energy prices, food prices and health care costs and increases in everyday expenses – the same pressures that Connecticut families face – are affecting state government, and we must respond to them in the same way that families do: by cutting back and spending only on the necessities.”

            The hiring freeze allows exceptions for positions directly impacting public health and safety. A letter from OPM Secretary Robert L. Genuario announcing the freeze is accompanied by guidance on implementing the freeze, including information for agencies on dealing with positions that are paid for with federal funds and what to do in cases where job offers have been extended but new employees have not yet started work.

            The freeze also includes restrictions on the use of outside consultants. Agencies are instructed not to use outside consultants as a means of covering the work typically done by employees whose positions have gone unfilled.

            State-run colleges and universities, the Legislative Branch and the Judicial Branch have been asked to observe the same restrictions.

            “Every action we take now puts us on firmer financial footing down the road,” Governor Rell said. “Our goal has to be not only to get through the lean times but to be ready to make the most of the economic upturn when it comes.”

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