College of Sciences Newsletter Edition 15 September 20, 2002 
A Meeting with Governor Warner
On September 18th, Milissa Story, Legislative liaison for HACE (Hourly and Classified Employees) and Phyllis Brown, 2002-03 HACE President, and Elizabeth Wallace, ODU Legislative liaison, were among 250 employees invited to Richmond to meet with Governor Mark Warner concerning the “budget dilemma.” The letter to HACE membership below describes the discussions.
September 20, 2002
Dear Fellow Employees:
As promised, here is a summary of the meeting with Governor Mark Warner in Richmond on Sept. 18, 2002. The essence of the meeting was positive. Gov. Warner is interested in the concerns, suggestions and ideas of state employees. As demonstrated at the meeting, not only did he address questions that were sent to his office in advance, employees were given time to ask questions from the floor. He is aware how the budget crisis is affecting employee morale. He believes that the best way to confront morale issues is with truth and a good attitude. He promised the truth and asked that we bring a good attitude to work each day.
What follows is a summary of comments he made in answer to our concerns and questions. If you have additional ones, please contact me (that information is at the end of this letter) or visit the website for the Secretary of Administration or the Governors web page. Don’t forget theVirginia Governmental Employees Association, VGEA, for a wealth of information.
Notes from the Meeting
Straight TalkIn the beginning, we had a $3.5 billion shortfall for FY03. Earlier shortfall figures were too low. There is now another $1.5 billion shortfall. In the late 1990s, the state experienced double-digit growth, but it wasn’t sustainable. We have lost revenue (i.e., the car tax, federal monies, etc.) and have the largest deficit in this state in 40-50 years! We are past the belt-tightening stage and into the eliminating stage. Part of the spending that must continue is due to federal mandates. Cuts will not be across-the-board ones; they will be based on each agency’s funding level. For example, for every dollar the University of Virginia receives, Old Dominion receives 62 cents; therefore, our cut will not be as large as UVA’s. Layoffs – There have already been 3, 000 layoffs since January. Unfilled positions will be used before layoffs are implemented. Some of these positions may be reassigned. How agency cuts are met will be left to that agency. There is no across-the-board layoff plan either. Services will be provided to employees during a workforce transition or relocation. Retirement – no changes to the existing Workforce Transition Act (WTA); the pot will not be “sweeten” to encourage early retirement. Pre-65 is considered early retirement. Because retirement health premiums are high (no employer match), it discourages employees from taking early retirement. Healthcare – there will probably be health premium increases, but employees need to contact federal representatives in regards to rising costs. Warner has a commission working on health care issues for employees (current and retired). VGEA is working separately on issues to improve our health care benefits, too. Not looking to raise sin taxes to cover shortfalls because legislature did not support his earlier proposal on this. Compensation - do not expect a raise in ’03, possibly not in ’04. He saved the bonus package, even though others recommended it be repealed. Not considering shortened workweeks or furloughs. Everyone will share in the pain. No “sacred cows”. Vehicle property taxes will remain at the 70% level (individuals will continue to pay 30% of the actual tax). Core (essential) services are educating the young, providing a safety net for people, public safety, and transportation. On a brighter side, Virginia’s economy is in better shape than neighboring states.
For Close ReviewMerging departments/units - Every agency does not need its own HR and/or procurement departments. Much depends on overlap. Combining cross agency functions yield long term savings. We can expect cuts of some programs. He would rather cut a program completely than provide poor service to Virginians. Eliminating pay stubs and hard-copy pay checks – stub information could be accessed online and everyone would receive their pay through direct deposit. Projections for prison populations show a rise in coming years, which means additional monies will be needed. Looking at issues: State prisoners still in local/regional jails; the use of our facilities for out-of-state prisoners. Removing extra layers of management. Looking into ways to generate additional revenue.
Milissa Story, HACE Legislature Liaison
Mstory@odu.edu
Phone: 757-683-5057
Fax: 757-683-3034
