Governor Rell Proposes Retirement Plan

to Ease Current Year Budget Deficit

            Governor M. Jodi Rell today announced that she has asked legislative leaders to quickly pass a voluntary Retirement Incentive Program for Connecticut state employees to help reduce the current year’s state budget deficit.

            Depending on the source of the estimate, the shortfall for the budget year that ends June 30 ranges from $922 million to $1.3 billion. Although Governor Rell has already implemented three rounds of agency budget cuts and sent the Legislature two deficit mitigation plans, the red ink continues to spill.

            “Voluntary early retirements are a benefit we can offer state employees that will also help close this massive budget deficit by cutting state labor costs,” Governor Rell said. “Personnel costs are a major part of our budget – one of the biggest costs we have – and achieving significant savings would go a long way toward easing the budget crunch in this current year and in years to come.

            “As I stated in my budget address, ‘State employees ... are not the reason, nor the cause, of our economic troubles. But [they] must be a part of the solution,’” the Governor said. “I deeply value the contributions that state employees make and I am trying very hard to avoid widespread layoffs. I know that many of them face dangers every day while others bring tender care to some of our state’s most vulnerable populations. A retirement plan gives these valued employees a way to be a part of a much-needed solution.

            “It is critical that the Legislature act on this request right away,” Governor Rell said. “I have already asked my budget office to draw up the details of the plan and my budget director is ready to meet with the leadership of the General Assembly at their convenience. I am asking them to pass the plan in the week of February 9 and to make all the retirements effective by March 31. That gives us a full three months – the last quarter of this fiscal year – to reap the savings that these retirements can yield.”