State government begins layoffs as part of budget cuts

Indiana’s Department of Administration has laid off 33 workers because of dwindling state revenues, the department’s commissioner said Friday.

About 12 of those worked on capital projects that have been put on hold, while others maintained Indiana Government Center facilities or worked with the state’s vehicle fleet, said Commissioner Mark Everson. Some of them will work their last day Friday, and others will finish up in the next two weeks.

Everson said the layoffs would save the state $900,000 during the current fiscal year that ends in June, and $1.6 million annually.

"This is a regrettable but necessary action given the difficult circumstances facing the state," Everson said.

Gov. Mitch Daniels last week ordered state agencies to cut costs by 10 percent during this fiscal year. Daniels has also offered voluntary unpaid leave to some workers and denied annual pay rises to others.

State tax collections fell $309 million below expectations during the first four months of the fiscal year. Daniels, a Republican, said that without cuts the state’s surplus—which stood at $1.3 billion in July—would be wiped out by next August.

He indicated earlier this month that he had hoped to avoid layoffs among the state’s 30,000 employees.

Daniels’ spokeswoman Jane Jankowski said Friday that she knew of no other layoffs but that more were possible.

"Of course the governor is very hopeful that agencies will do all they can to minimize separations," she said.

David Warrick, the leader of the union that represented state employees before Daniels took office in 2005 and stopped their collective bargaining rights, said he did not recall any state government employee layoffs in the last 30 years and that the state should find other ways to cut costs.

"When times are tough, you need the public services," said Warrick, executive director of the American Federation of State, County and Municipal Employees, Council 62.

Everson said about 17 people have left the Department of Administration since he became commissioner in January and that with the layoffs his department will be down to 209 employees—a loss of about 20 percent of staff.

"We’re just slimming down in every way we can to reduce costs," Everson said.

The Department of Administration oversees state purchasing, the state vehicle and aviation fleet, real estate transactions and the Government Center campus in downtown Indianapolis. The department is also hoping to save money by consolidating some government offices and reconsidering leased office space around Indianapolis.

The state’s two-year budget enacted in June cut most agency spending by 10 percent from the previous budget, and now agencies must reduce spending by another 10 percent. Daniels has said individual agency heads have the freedom to determine how the cuts are made.

The state’s largest agency, the Family and Social Services Administration, said it does not plan to lay off any of its 4,800 workers. It does plan to leave about 400 positions vacant, however, to save money.