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Few Details Known About Budget Buyout Plan

No Definite Numbers To Be Available For Weeks, Bredesen Says

POSTED: 1:49 pm CDT May 16, 2008
UPDATED: 6:24 pm CDT May 16, 2008

Gov. Phil Bredesen says lawmakers should trust the administration to flesh out a reasonable buyout package for the 2,000 employees he plans to cut from the state work force.

Video: State Buyouts Include Tuition, Health Coverage

The state House this week delayed approving the state's budget over several Democratic lawmakers' concerns that they don't know enough about how the buyouts will work.

Bredesen on Friday repeated his opposition to some fellow Democrats' calls to use the state's budget reserves to stave off work force reductions amid the economic downturn.

"I think that is fiscally irresponsible," Bredesen told reporters. "I think it starts us down the road of once again failing to match recurring revenues with recurring expenses.

"That's exactly the road that led to income tax proposals and everything else a number of years ago," he said.

Lawmakers rejected a state income tax proposal before Bredesen came into office in 2003.

The governor said he's not hiding anything from lawmakers about the buyouts, but said it will take time to clear several complicated legal hurdles before it becomes clear who will be offered the buyouts.

"In the end the Legislature has to trust the administration a little bit to put this thing together and administer it, and I certainly think we've earned that trust over these last few years," Bredesen said.

Legislative leaders hope to end the 105th General Assembly early next week.

The work force reductions would represent about $64 million out of the $468 million that needs to be cut from spending plans for the budget year that begins July 1. Bredesen said lawmakers are free to tweak his proposed cuts, but he said the buyouts fundamental to making the numbers work.

"We've put a path out there for the Legislature, which I think is a straight path, a paved path, a lighted path," Bredesen said. "We've showed them the way to go."

Lawmakers said on Friday that the workers who opt to take the buyout will receive extended insurance benefits, a cash incentive and a two-year tuition reimbursement at the highest university cost.

But several lawmakers have raised concerns that not enough state workers will take up the offer for voluntary buyouts, and that would lead to mandatory layoffs.

"The bottom line is if you don't take it (the buyout), you're on the street," said Rep. Mike Turner, D-Old Hickory.

Rep. Mike Turner, D-Old Hickory, said on Thursday that the state should dip into its reserves to delay layoffs until next year.

Others argued that state services could be reduced just as citizens need them most.

"I'm not going to vote for the budget," said Rep. Willie Butch Borchert, D-Camden. "My people have been laid off, kicked around long enough."

House Majority Leader Gary Odom, D-Nashville, suggested that lawmakers approve the $50 million that Bredesen has requested to pay for the buyouts and then return into session if not enough state workers volunteer for the program.

Lawmakers could then consider using reserve funds to temporarily prevent mandatory layoffs, he said.

Senate Democratic Leader Jim Kyle, of Memphis, said the upper chamber could have passed the budget on Thursday.

"The Senate is a lot calmer than the House," he said. "We are as a general rule anyway."


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