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Gov. Malloy Announces Creation of State Workforce Reduction Contingency Plan in the Event that it be Needed

Governor Hopeful that Plan Will Not Be Necessary and Structural Solutions Can be Found at the Bargaining Table

(HARTFORD, CT) – Governor Dannel P. Malloy today announced that the Office of Policy and Management has developed a state workforce reduction contingency plan, which would be implemented in the event that the state is unable to reach a comprehensive labor agreement with the State Employee Bargaining Agent Coalition (SEBAC).

Collective bargaining units will receive formal notification today of the plan, thereby allowing the state to begin notification of impacted individuals in May, should such layoffs be necessary.

“Talks are ongoing and constructive,” Governor Malloy said. “I am optimistic that we will be able to meet our budget challenges as I proposed in February – with labor concessions that reduce our long-term fixed costs related to pensions and benefits for our employees. I believe that the leadership and members of SEBAC are also committed to a negotiated solution. We all hope that our contingency plans will ultimately not be necessary and that the structural solutions Connecticut needs can be found at the bargaining table.”

The contingency plan would further reduce the state workforce by over 1,000 in May as a first step toward resolving the budget shortfall for next year in the event that the state is unable to reach a comprehensive labor agreement. In addition to the nearly 1,100 filled positions that have been identified for elimination, the plan calls for elimination of more than 120 vacant positions that were in the process of being filled. The impacted employees will include non-union employees as well as members of various bargaining units. Furthermore, it is anticipated that most of the impacted employees will be required to work through their notice periods.

The annual savings from the plan are projected to be over $80 million. The Office of Policy and Management will continue to develop additional plans to achieve a balanced budget in the absence of a comprehensive labor agreement and will work to ensure that such plans are coordinated with the ongoing work of the General Assembly to produce and pass a balanced budget for the upcoming biennium.

The Office of Policy and Management will provide specific agency-by-agency information on position reductions and resulting service changes should it be necessary to implement the contingency plan in May and once impacted employees are provided notice.

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