Buyout plan sent to 12,000 TN employees
Gov. Phil Bredesen is hoping 2,011 employees will accept the plan as he tries to cut a total of $468 million from the spending plan that begins July 1.
Finance Commissioner David Goetz on Monday declined to discuss which groups of employees had been targeted for the buyouts, saying officials wanted to talk with employees first. He did say there is a misperception that the majority of employees being offered the buyouts will be people who were ready to retire anyway.
‘This is not an early retirement program,’ he said.
The buyout package includes cash incentives, six months of subsidized medical coverage for those who do not qualify for Medicare and tuition assistance of up to $10,800 over two years. Employees have until Aug. 5 to apply.
Goetz said the buyouts aim to cut about 5 percent of the staff from each department.
Gov. Phil Bredesen is abolishing two positions, both currently vacant, from his own staff of about 40, Goetz said. But few of the positions eligible for the buyouts are currently unfilled.
If more employees accept the buyout, those with seniority will be picked first, Goetz said. If not enough people accept the buyouts, Bredesen has said the state will be forced to lay off employees.
‘We expect that ‘ we hope that ‘ more people will apply than the number of positions we have … to eliminate,’ Goetz said Monday.
Goetz said the state has the flexibility to buy out more people than the projected 2,011 if necessary.
If the economy continues to sour, the state could also consider a second round of buyouts, he said.
A Web site, call center and special e-mail address will provide information and field questions from workers about the plan. Administration officials also plan a series of meetings across the state.