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February 21, 2008
Lawmakers said they are bracing for massive state worker job cuts and even the elimination of state departments as Gov. Jon Corzine prepares a proposed budget that will recommend slicing spending by more than $2 billion.
Lawmakers who have spoken with Corzine or his aides about the budget said they believe he wants to reduce the payroll by 3,000 to 4,000 positions, though the exact mix of layoffs and other job cuts remained unclear. Other options include reductions through attrition or early retirement.
Several lawmakers also said Corzine is considering the elimination of at least three departments: Agriculture, Personnel and Commerce.
Without providing specifics, Lilo Stainton, an administration spokeswoman, confirmed the governor will be announcing plans Tuesday during his annual budget message to further shrink the bureaucracy, which now numbers 68,430 full-time positions.
"The governor will discuss downsizing government during his budget address," she said.
However, a top administration official who requested anonymity because the budget is not complete cautioned that administration talks with lawmakers are producing "speculation" that may not reflect the spending plan Corzine will present.
Corzine has publicly vowed to cut more than $2 billion from total state spending and alluded to possible layoffs.
The former chief executive officer of Goldman Sachs already has shrunk the full-time state payroll by a net 1,850 positions since taking office two years ago, according to new numbers made available yesterday from the Treasury Department. The net loss in jobs reflects the addition of 979 new employees at the Department of Children and Families, which is under court order to improve child welfare services.
"From my understanding, he's talking about reductions in the workforce, cuts across the board, and I've got to congratulate him," said Senate Majority Leader Stephen Sweeney (D-Gloucester).
Sweeney predicts a "firestorm" will erupt once the full budget details are disclosed. "You've never had so many Democrats talk about cutting spending before, and they are serious about it," he said.
Sen. Shirley Turner (D-Mercer) said Corzine has talked to her about further payroll reductions. "I think that state employees are probably a place he is looking to cut," she said.
Turner fears her district, which includes the state capital, would be devastated economically if the job cuts are too massive. She has volunteered to sponsor legislation that would offer buyout packages to employees who retire early.
"I told him (Corzine) as far as I'm concerned I don't want to see wholesale layoffs," Turner said. Assemblywoman Linda Greenstein (D-Mercer) said she, too, will oppose widespread layoffs. "I would support buyouts if it isn't going to cost us a lot of money," she said.
For close to a decade, there has been speculation that the Department of Personnel, with 328 employees, might be combined with the treasury department, and that finally appears imminent, lawmakers said. They said the smaller 245-member Department of Agriculture also is a candidate for a merger. Corzine previously has announced plans to scale back the New Jersey Commerce, Economic Growth and Tourism Commission.
Lawmakers say one department slated to be cut by at least 300 positions is the Department of Law and Public Safety, which already has lost 640 positions since Corzine took office, the most of any department. Its staffing is now about 9,300. A department spokesman declined to comment yesterday.
Another lawmaker said another department targeted for "hundreds" of job cuts is Environmental Protection, which already has lost 221 positions and now has 2,998 employees.
Assemblyman Joseph Malone (R-Burlington) said Republicans also would eliminate the Departments of State and Public Advocate.
Sen. Barbara Buono (D-Middlesex), chairwoman of the Senate Budget and Appropriations Committee, said she has asked the Office of Legislative Services to investigate the possibility of more savings at various independent boards, agencies and commissions. She also is urging the administration to improve oversight of the state contract process.
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