Wednesday, September 9, 2009

More Details on the Budget Cuts

We have received clarification on two items in the Governor's press release:
  • Further savings are achieved through targeted strategies that will reduce general fund spending by an additional $446 million—including more than $104 million in reduced payments to the Virginia Retirement System (VRS) for the final quarter of FY 2010. Contribution rates for the Commonwealth and its employees will be changed in July at the beginning of the next biennium to adequately fund the long-term needs of the retirement system.

We believe that employees will not see a difference in the current year but that as early as the last quarter of this fiscal year and most likely beginning in July employees will be asked to pay for a portion of our state retirement.

  • A one-day furlough of all state employees on the Friday proceeding Memorial Day 2010. Agencies with critical or emergency personnel are instructed to accommodate staffing needs and make adjustments to the furlough date accordingly.

We now know that this does apply to us. I will decide how we will implement after further discussions with vice presidents and other administrators and let you know.

I regret the hardships these decisions will bring to all of you. Further clarification will be announced as soon as available.

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