NASHVILLE, Tenn. -- Tennessee plans to cut 2,011 state jobs, mostly through voluntary buyouts, to shore up the state budget, the governor said Wednesday.
The job cuts amount to 5 percent of the state work force and would save about $64 million each year, Gov. Phil Bredesen said.
"We're going to do this in a way that is respectful of them and try to minimize the impact on any employee," he said, though he warned involuntary cuts will be made if not enough workers take involuntary buyouts.
Bredesen said a budget plan he'll detail to legislators Monday would assume a $468 million shortfall. He said he would propose no new taxes to bridge the funding gap.
"We need to be prepared for some lean times ahead," Bredesen said.
The Tennessee State Employees Association praised the effort to make the buyouts voluntary.
"It is our hope the General Assembly will work with the governor and adopt these proposals for a voluntary buyout and not terminate workers," said Zoyle Jones, the group's president.
Plans to expand eligibility for TennCare also will need to be scaled back, the Democratic governor said. In 2005, Bredesen cut more than 170,000 adults from the state's expanded Medicaid program amid escalating costs.
State Finance Commissioner Dave Goetz said the buyouts will target state employees with at least 30 years of service.
"It's going to be harsh no matter how you do it," he acknowledged.
Bredesen's plan drew praise from Republican legislative leaders.
"It's a tough time in state government, but I think he's making the right decision," Senate Speaker Ron Ramsey said.
Critics from Bredesen's own party have said the state's $750 million "rainy day" reserves should be tapped to stave off layoffs. Bredesen said he's against that move for fear the budget picture could get worse the following year.
More than half the states are experiencing budget shortfalls. Under state constitutions, most can't borrow money or run a deficit, making spending cuts a necessity. That has brought hiring limits and freezes in states from California to Maryland.
Ohio Gov. Ted Strickland has announced spending cuts that could lead to about 2,700 of the state's 60,000-plus workers to lose their jobs. Rhode Island Gov. Don Carcieri last week signed a revised spending plan that includes a provision to make state employees who retire after Sept. 1 pay more for their health insurance _ a change that state officials say could prompt about 2,500 state workers to leave before the deadline.
In New Jersey, Gov. Jon S. Corzine is proposing to cut 3,000 state jobs through early retirement incentives and layoffs. The state's commerce and personnel departments would be eliminated.
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