Union says federal money paid salary for many laid off by state

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(Host) According to a new study released by the Vermont State Employees Association, the Douglas administration has laid off dozens of employees whose salaries were financed primarily with federal money.

The VSEA says it makes no sense to cut these jobs and return the money to the federal government. But the administration says that’s not what’s happening.

VPR’s Bob Kinzel reports.

(Kinzel) The VSEA says 123 state workers lost their jobs as a result of the most recent round of layoffs implemented by the Douglas administration. It’s a reduction the administration says was needed to trim budget costs by $6 million.

But the union says 40 percent of these savings, or roughly $2.4 million, represent positions that are paid for largely using federal money.

VSEA spokesperson Conor Casey describes this situation as a "reverse" stimulus package.

(Casey) "If you look at the purpose of the federal stimulus package, it’s to preserve and create jobs. That’s the only way out of this economic crisis. What the governor is doing here is putting working Vermonters on the unemployment line and sending federal money back to Washington."

(Kinzel) And Casey says the layoffs unfairly target the Human Services Agency.

(Casey) "In times of economic downturn, people need services more than ever. And if you look at the list of positions being cut, there are a lot of them in the Human Services Agency. … These are positions we need now more than ever."

(Kinzel) Budget Commissioner Jim Reardon blames the union for the layoffs because, he says, the cuts wouldn’t have been necessary if the VSEA had been willing to discuss other cost-saving measures:

(Reardon) "The union had opportunities to come up with other proposals that would have allowed us not to have to do a reduction in workforce."

(Kinzel) Reardon says the layoffs have a big impact on the Human Service Agency because it’s the largest agency in state government. And he disputes the union’s claim that this federal money will be lost to the state.

(Reardon) "If those federal funds are not used for payroll, those federal funds in large part can be used to augment services and programs. So those funds will be used for other purposes over and beyond supporting the labor force. So they’re not lost federal funds, as the union is claiming."

(Kinzel) The new state budget calls on the Douglas administration to present a plan to the Legislature’s Joint Fiscal Committee next week to achieve an additional $14 million in personnel savings for the new fiscal year.

Reardon says he hopes to meet that budget goal without proposing a large number of additional layoffs. 

For VPR News, I’m Bob Kinzel in Montpelier

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