Financial woes push Gov. Strickland to consider ERIs
As tax receipts continue to drop (4th consecutive year), oil prices soar, lending terms tighten, and economic activities slow, the economic forecast for Ohio looks even darker.
That's why, according to today's Akron Beacon Journal, Ohio is looking at cost containment options, including an Early Retirement Incentive (ERI) plan.
OCSEA expressed concern, however, about how the proposed ERIs would impact agency staffing levels and service delivery to Ohioans.
The news article reported that Gov. Ted Strickland last week directed his agency directors to consider ERI plans, "to save money in light of a potential recession and continued state budget problems."
Check out the Office of Budget and Management ERI Memo at http://www.obm.ohio.gov/memos/2008/01082008.pdf
That's why, according to today's Akron Beacon Journal, Ohio is looking at cost containment options, including an Early Retirement Incentive (ERI) plan.
OCSEA expressed concern, however, about how the proposed ERIs would impact agency staffing levels and service delivery to Ohioans.
Peter Wray, an Ohio Civil Service Employees Association (OCSEA) union spokesman, said many departments, such as mental health, mental retardation and developmental disabilities and youth services, are facing shortages and would be hard-pressed to reduce their numbers.
Wray acknowledged the proposal allows agencies to reduce costs by replacing higher-paid workers with lower-cost employees, but he said his experience is the subsequent hiring often doesn't take place.
''It's easier said than done,'' Wray said.
The news article reported that Gov. Ted Strickland last week directed his agency directors to consider ERI plans, "to save money in light of a potential recession and continued state budget problems."
Check out the Office of Budget and Management ERI Memo at http://www.obm.ohio.gov/memos/2008/01082008.pdf
Labels: Budget, Economy, Retirement
posted by Jenny at
9:30 AM
2 Comments:
ERIs are really a seen as a benefit by employees and have proven to be a financial benefit to the state when used correctly. Why some agencies offer them routinely and some agencies never offer them is an unfair manner to to distribute this benfit. The state budget scenario is a state issue not an individual agency issue. The governor ought to approach it as such and propose an ERI plan across all agencies.
By
Anonymous, at Thu Feb 07, 04:22:00 PM 2008
As a 20 year DR&C employee, I am looking forward to receiving an ERI, however, I wish that DR&C was offering more than one year, but I will take what I can get and run with it. Although I am concerned about what the prisons will be like after all those elegible for ERI leave, and then the lay offs and budget cuts cut into even more staff, will safety be sacrificed?
Thankfully, there is a union to monitor the State to make sure this does not happen.
By
Anonymous, at Thu Feb 14, 05:44:00 PM 2008
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