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Wednesday, March 17, 2010
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Treasurer Kennedy says cut 15,000 state government jobs
Louisiana should aim for trimming 15,000 state government jobs over the next three years to help cope with budget problems, State Treasurer John Kennedy said Monday.
Kennedy said the reduction could be accomplished through attrition and trim the state workforce by about 14 percent from 104,000 employees to 89,000.
“I do believe it can be done,” Kennedy said. “We see it done every day in America.
“It is not easy,” Kennedy added. “It is not done without pain. But it can be done.”
The treasurer made his comments to the Press Club of Baton Rouge.
Kennedy offered the suggestion during a speech that focused on state budget problems.
State revenues dropped by $1.3 billion for the financial year that begins on July 1. Even bleaker financial forecasts are predicted for the next two years.
Kennedy said the state’s current operating budget is nearly $30 billion, including $4.6 billion for salaries.
He said that, if the state gradually eliminated 15,000 jobs, it would save between $600 million and $1 billion per year.
“We have got to get control of this budget,” he said.
Kennedy said the state workforce has an annual attrition rate of 15 to 22 percent, depending on whether classified or unclassified jobs are involved.
He said agency reorganizations and early retirements are among ways the workforce could be reduced.
Kennedy mentioned Commissioner of Administration Angèle Davis as one possibility to tackle the job.
Asked about that, Davis’ office issued a statement that said previous and proposed actions could mean the elimination of 3,411 full-time state jobs that have saved $222 million since Gov. Bobby Jindal took office.
Kennedy said the state’s nearly $30 billion operating budget today is up from $11.9 billion in 1996 and $18.7 billion in 2005, in part because of hurricane recovery dollars.
Louisiana has about 4.2 million residents.
Kennedy said Missouri has a $21.4 billion operating budget with a population of 5.6 million; Tennessee has a $24.8 billion budget with a population of 6.1 million; and Kentucky’s is $22.3 billion with roughly the same population as Louisiana.
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