Governor Rell Asks Commissioners, Managers to

Take Unpaid Leave Day as Cost-Cutting Measure

Governor Taking Own Unpaid Day Today; Move Intended to Avert More Serious Consequences as Revenue Picture Steadily Darkens

            Governor M. Jodi Rell today announced that she has asked agency commissioners and non-union managers to voluntarily take one unpaid day of leave by March 1 as a cost-cutting move, saying she is taking an unpaid day herself today to lead the effort.

            “All anyone has to do is pick up a newspaper or talk to a neighbor – the steady flow of news about layoffs is deeply disturbing,” Governor Rell said. “Aetna just announced that 375 of the 1,000 jobs it plans to cut will come from its Connecticut offices; UST is moving virtually all of its employees out of Stamford. Stanley Works, AT&T, Pratt & Whitney and – sadly – many other ‘blue chip’ companies as well as far too many of our small and medium-sized employers are cutting their work force.

            “I am determined to avoid layoffs if at all possible,” the Governor said. “But state government is not immune from the relentless pressures that are throttling the economic life out of taxpayers and businesses all over our state. We simply have to cut our costs – and that goes for our payroll, too, just like any other business. That is why I am asking executive and non-union managerial employees to take an unpaid day of leave, as permitted under state law, during the first two months of this year.

            “I can hardly ask them to take this step without doing so myself, and so – even though I am in the office today – I am taking Tuesday as an unpaid leave day,” Governor Rell said. “I am asking that top officials work together to schedule these days so we can avoid any disruption to agency operations. And while I cannot order other constitutional officers, judicial officials or legislative officials to do the same, I ask them to consider it carefully as a way of contributing to the combined savings.”

            No estimate of the total savings to the state payroll is available.

            As the economic situation in Connecticut has progressively deteriorated, Governor Rell has taken a number of steps to cut state spending, ranging from a travel ban, hiring freeze and ban on non-essential purchases put into place in the spring of 2008 to three rounds of agency budget rescissions totaling more than $190 million and the development of two deficit mitigation plans presented to the General Assembly.

            The Governor has also hired Saranne P. Murray, a partner in the law firm of Shipman and Goodwin, to assist the start in holding discussions with leaders of state employee unions regarding the labor costs associated with Connecticut government.

            Nevertheless, the state budget deficit for the current year – currently estimated at about $356 million – continues to worsen. The deficit projection is expected to grow later this week after data on January estimated tax payments is compiled.

            The deficits for the next two fiscal years – FY2010 and 2011 – are projected to be at least $2.6 and $3.3 billion, respectively.