Gov. Butch Otter has proposed a budget compromise to lawmakers that eliminates the 3 percent across-the-board pay cut for state employees in favor of leaving more latitude to state agency directors on how to handle cuts, and reduces the proposed 5 percent statewide cut in personnel costs to 3 percent. Here's a message Otter's budget chief, Wayne Hammon, sent to all legislators this morning, and here's a link to his full proposal:

From: Wayne Hammon
To: Wayne Hammon; Jason Kreizenbeck
Sent: Wed Apr 01 10:18:05 2009
Subject: Governor's Budget Plan

Members of the Senate and House,

Attached is a copy of the Governor’s proposal for the end of the year budget bill.  This plan addresses many of the concerns that up until now have remained unresolved.

Specifically, the Governor’s plan:

·         Eliminates cross-the-board salary reductions for all employees
·         Decreases the statewide PC reduction from JFAC approved 5% to 3%
·         Provides flexibility to agency directors in how to implement PC reduction
·         Uses “rainy-day” funds for their intended purposes while maintaining healthy balances as a safeguard against continued economic decline
·         Maximizes impact of federal stimulus dollars by helping communities across the entire state while putting Idahoans back to work in construction projects in both the private and public sectors
·         Provides safeguards for possible end-of-year revenue shortfalls

This proposal was developed in close cooperation with the Co-Chairs of the Joint Appropriations and Finance Committee, state agency directors, employee groups, and other interested parties.  I strongly believe that the Governor’s proposal is a “way forward” to resolving these issues.  While the proposal does not contain all of what the Governor had hoped for, but it is a good compromise that addresses the tough issues facing all of us.

Please feel free to contact me should you have any quesitons on this.

Thanks,

Wayne L. Hammon, Administrator
Division of Financial Management
Office of Governor C.L. "Butch" Otter

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