Taking one day at a time
The furlough issue has supporters and detractors
Sarah Ewald
Staff Writer
Taking one day at a time
The furlough issue has supporters and detractors
Sarah Ewald
Staff Writer
The word “furlough” used to be likely to conjure mental images of World War II soldiers on leave from war. Now, the term is much more likely to be used describing a cost-cutting measure to help the economy.
North Carolina Governor Bev Perdue and president of the University of North Carolina school system Erskine Bowles are at odds over decreasing spending for the state budget.
Earlier in the month, Perdue proposed a budget that totaled nearly 21 billion dollars. According to WRAL.com, this budget includes a 4.8 percent increase in the University of North Carolina school system’s budget. However, Bowles claims this proposal would actually slash the budget by 6.5 percent.
According to Forbes.com, “about 171 million dollars would come from reduced spending in the UNC System schools.” This reduced spending would lead to a permanent loss of jobs.
Bowles has since counter-proposed that furloughs be implemented into the system to save the 400 to 500 jobs Perdue’s budget would cut.
According to the United States Office of Personnel Management Web site, “a furlough is the placing of an employee in a temporary nonduty, nonpay status because of lack of work or funds, or other nondisciplinary reasons.”
Barbara Carroll, associate vice chancellor for Human Resources, said that if the question is having to cut budgets on a temporary basis, there are some tools that work better than others.
“Laying-off employees is a permanent decision. With a furlough, there would be a small impact on a lot of people, instead of one big impact on one person,” Carroll said.
Chrissy Pearson, press secretary for Governor Perdue, said the governor presented a balanced budget focused on education. Pearson said Perdue hopes furloughs are not considered an option.
“Perdue did not utilize furloughs because she is hopeful that the budget passed will avoid furloughs,” Pearson said.
Pearson said Perdue made the decision not to include furloughs because she believes the budget can be balanced without them.
In an e-mail, Provost and Executive Vice Chancellor Larry Nielsen said, “The University does not have the authority to implement furloughs. State law does not currently permit this.”
The talk of furloughs is just that — talk. Nielsen is correct — the UNC System only has the legal ability to fire personnel, not furlough them.
Monday, however, state representatives introduced House Bill 708 — “Furlough of State Employees” — that, if passed, would give executive state offices, including the UNC System, the ability to furlough employees.
Nielsen said furloughs are not part of the University’s budget reduction plan.
If Bowles gets his way, the University will have to work around the mandatory time off.
Carroll said if the bill is passed, the focus would be trying to design a program that would work without unintended consequences. Many worry furloughs could become permanent, or that so many days would be cut that even employees who still have jobs may not make enough to maintain bill or mortgage payments.
Furloughs would have a definite impact on someone’s pay, especially with saving towards retirement, according to Carroll, and the lower the number on the paycheck, the higher the impact.
“One day without pay could also impact lower-income employees more significantly than higher-level ones,” she said.
The bill, as it stood Tuesday, includes clauses that would protect employees making less than $30,000 a year from being furloughed.
As for how furloughs would run in the University, Carroll said it would most likely be up to the faculty and staff.
“The University wouldn’t shut down every Friday or one Friday out of every month. The faculty and staff would pick out one day with their department head, and that would be their day off,” Carroll said.
Carroll said a furlough program has not been designed, but she does not believe this is the first time the idea has surfaced. Carroll also said furloughs have never been done in the four years she has been working at the University.
Carroll said implementing a furlough has a finite timeline attached to it — meaning the furloughs would be lifted once the state budget reached some level of recovery.
“The idea of a furlough is temporary by design. It is a one-time thing, and occurs over the course of a year,” Carroll said.
The permanent solution would be a salary cut.
“A temporary situation needs a temporary solution, as opposed to using a permanent solution for a temporary problem,” Carroll said.
Students are divided on the issue as well.
Sara Yasin, senior in fashion and textile management, sides with Perdue on the issue.
“You’re asking employees to go a day without pay,” Yasin said.
Yasin also said University employees taking furloughs would hurt general morale around campus.
“Students will notice people missing, and it wouldn’t be a nurturing environment,” Yasin said.
Greg Doucette, senior in computer science and Student Senate president, is in favor of Bowles’ proposal. Doucette said the UNC Association of Student Government recently passed Resolution 35, titled, “Furlough Authority Endorsement Pact,” in favor of the UNC System implementing furloughs instead of job cuts.
“It saves money for the University, but not on a dollar-by-dollar basis. I’m in favor of it as long as it’s only used in times of economic crisis and protects lower-level employees,” Doucette said.
Even if the furlough bill passes the House, it will have to pass the Senate and receive a nod of approval from Perdue before any employee’s pay is cut.
