Layoffs likely without new state revenue, officials say

December 16, 2008 | Jack Brammer | Comments 33

FRANKFORT – Without more money, some state parks will have to close and maybe up to 300 workers in her cabinet will be laid off, said Tourism, Arts and Heritage Secretary Marcheta Sparrow.

Local Government Commissioner Tony Wilder said no new revenue for the state treasury would mean three to five layoffs in his agency plus more furlough days than the three Gov. Steve Beshear has recommended along with deep cuts in numerous local community projects funded by grants from the state.

Such gloom-and-doom scenarios were offered up by state officials who said they could be avoided only if the financially strapped state budget receives additional dollars.

Gov. Steve Beshear last week proposed tackling the projected $456.1 million state budget shortfall by raising the 30-cents-a-pack state cigarette tax to $1 a pack, by implementing three-day unpaid furloughs for state workers and cutting spending in most agencies by 4 percent.

He said he wants the legislature to consider all aspects of his plan.

Sparrow and Wilder held a news briefing Tuesday to outline the impact on their budgets if the state received no new revenue and if their current budgets were cut by 4 percent. Briefings by other state officials are to continue this week.

Sparrow, whose cabinet has a $51 milllion General Fund budget with about 2,400 employees, said she didn’t know how many parks would have to close if there were no new revenue but said the number could be “rather significant.” Kentucky has 52 state parks, of which 17 are resorts.

She also said the 300 or so layoffs in her cabinet would involve full-time as well as seasonal employees.

Under a 4 percent – or $875,000 — cut, she said, the eight welcome centers across the state on interstate highways may close two days a week but their rest rooms will remain open.

The Kentucky History Center in Frankfort may be dark on Mondays and the Berea Artisan Center may open an hour later and close an hour earlier, reducing services to customers and travelers on I-75.

Also, 10 scholarships for the Governor’s School for the Arts, a summer program for gifted high school students, would be cut. That would reduce the 231 slots to 221.

Wilder said a 4 percent or $381,000 cut in his $9.5 million budget with 71 employees would mean a reduction in travel to monitor projects and fewer grants for community projects, such as no funding for the Richmond Art Center and Mystery Writers program in Owensboro.

Justice and Public Safety Secretary J. Michael Brown and Energy and Environment Secretary Len Peters are to hold briefings about their budgets at 9 a.m. Wednesday.

Here’s a closer look at the impact of the revenue shortfall on Sparrow’s and Wilder’s agencies:

In Tourism, Arts and Heritage Cabinet

Berea Artisan Center
With 4 percent cuts – Reduce hours, probably two a day. Savings of $13,700.
With no new revenue – Make major reduction in hours and service.

Department of Travel
With 4 percent cuts – Reduce interim and temporary staff at eight welcome centers across the state and at the Capitol tour desk. Possibly close all welcome centers two days a week. Savings of $151,900.
With no new revenue – Make major reductions in staff and hours of service. Further welcome center closings.

Kentucky Arts Council
With 4 percent cuts – Reduce funding and technical assistance for artists, school, organizations and communities and reduce funding for Kentucky Crafted: The Market. Savings of $142,000.
With no new revenue – Lay off staff and eliminate some grant and technical assistance programs.

Kentucky Center for the Arts/School for the Arts
With 4 percent cuts – Consider cutting 10 scholarships for the Governor’s School for the Arts and reduce staff or curtail some programs. Savings of $42,500.
With no new revenue – Lay off staff and make major reductions in scholarships and programs.

Kentucky Heritage Council
With 4 percent cuts – Reduce staff. Savings of $34,700.
With no new revenue – Lay off staff and make major program cuts.

Kentucky Historical Society
With 4 percent cuts – Cut hours at the Kentucky History Center, consider canceling the Kentucky Folklife Festival in Frankfort and scale back Lincoln Bicentennial teacher tool kits for 2009. Savings of $273,300.
With no new revenue – Lay off staff.

Kentucky Horse Park
With 4 percent cuts – Reduce advertising and not fill three full-time positions.
With no new revenue – Lay off staff.

Kentucky State Parks
With 4 percent cuts – Work with the Parks Department to manage an anticipated shortfall
With no new revenue – Close parks and lay off workers.

In Department for Local Government

With 4 percent cuts – Reduce in-state and out-of-state travel, meaning fewer field visits to monitor projects. Savings of $45,000.
Limit printing projects – fewer manuals and training materials. Savings of $14,500.
Limit use of temporary staff services. Savings of $2,000.
Reduce Joint Fund Administration funding from state and federal funds, possibly resulting in staff reductions for Area Development Districts. Savings of $90,000.
Reduce General Fund grants, causing deferral of programs or scaling back of activities. Savings of $226,000.
Consider not filling vacancies.

With no new revenue – Lay off three to five employees.
Increase number of furlough days.
Cut JFA appropriations, impacting all Area Development Districts and their ability to serve local governments.
Prolong department’s inability to fund local community projects through grants.
Restrict all department travel unless approved by the commissioner.

–Jack Brammer