Lawmakers may cut employee pay
TALLAHASSEE (AP) – The Florida Senate’s chief budget writer said Monday that lawmakers may consider a pay cut for state employees to help close a $6 billion budget gap that’s looming for the next fiscal year.
Senate Ways and Means Committee Chairman JD Alexander said federal stimulus money could plug about half of that hole – the difference between estimated revenue and must-fund spending – but it will take budget cuts as well as revenue increases to make up the rest of the shortfall.
Lawmakers cut their own pay by 5 percent last year, and Alexander said a similar reduction for state workers is an option in the upcoming budget year that starts July 1.
“I would hope it wouldn’t be 10 percent,” said the Lake Wales Republican. “I’m personally more comfortable with a 5 percent reduction.”
He noted many state workers would be hard pressed to make payments on mortgages, car loans and meet other basic expenses if the Legislature takes too big of a bite out of their pay checks.
A pay cut would be better than layoffs, said Doug Martin, Florida spokesman for the American Federation of State, County and Municipal Employees, a union representing thousands of state workers.
Any reduction, though, should be graduated – taking less out of the pay of low-wage employees and more for those on the higher end of the salary scale, Martin said.
Alexander said graduated as well as across-the-board pay cuts have been discussed.
Martin noted state workers already have gone without a pay raise for the past two years.
“We’ve shared the pain,” Martin said. “There have been layoffs, but at some point some other people have to share the pain, too.”
The Legislature should pass a comprehensive tax package including an increase in the cigarette tax and the repeal of some sales tax exemption and exclusions for such purchases as charter fishing boats and legal and accounting services, Martin said.
Lawmakers are examining the sales tax structure, but the Republican-controlled Legislature so far has been reluctant to raise taxes or impose new ones.
Alexander, though, acknowledged revenue increases must be considered, saying it will be difficult to balance the budget “just with cuts.”
Temporary layoffs or furloughs are unlikely, Alexander said. That’s because they would result in only a one-year savings.