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Lawmakers address furloughs, layoffs

MADISON — The state's constitution is clear: Lawmakers can't be furloughed.

But that doesn't mean area lawmakers won't help the state respond to a projected deficit that's approaching $7 billion.

Most Assembly representatives and state senators have said they will return a portion of their salary over the next two years.

But just how much they return is still being determined.

A recent report from the Legislative Fiscal Bureau added another $50 million to the $6.6 billion projected state budget shortfall through June 30, 2011. The bureau said it expected a $34 million decline in income taxes collected over the next two years and a projected $16 million drop in tribal gambling revenue.

Along with the legislative furloughs, Gov. Jim Doyle said he would lay off up to 1,100 executive branch employees, try to cancel a 2 percent raise promised to 10,000 employees in June and cut agency budgets by 5 percent.

Those steps alone, however, would not balance the budget. Democrats who control the Legislature say they are considering other spending cuts, tax increases and borrowing to fix the shortfall caused partly by lower than projected income and business tax collections.

"Faced with the worst economic climate in generations and an unprecedented budget deficit, returning 16 days of our pay is simply the right thing to do," Assembly Speaker Mike Sheridan and Minority Leader Jeff Fitzgerald said in a recent statement.

State lawmakers earn $49,943 per year.

But how much the lawmakers will return is still in question.

State human resources personnel are trying to determine the lawmakers' daily pay rate. Is it $49,943 divided by 365 days, or is it the salary divided by 52 weeks divided by five days in a week?

The former scenario yields a daily pay rate of $136.80 and a total contribution to the state of $2,188.80 for 16 days. The latter produces a daily rate of $192 and a payback of $3,072.

State officials also are trying to determine whether the deductions will be pre- or post-tax.

Assembly reps who accept the cut likely will have two options: They can have a set amount deducted from monthly paychecks or they can write a check back for the full amount.

The Assembly will handle the furlough on an across-the-board basis with all offices treating the issue the same way, said Sheridan, D-Janesville.

The situation is somewhat different in the Senate, where the Democrats' caucus agreed to take the pay cut. Senate Chief Clerk Robert Marchant said he is meeting with senators individually over the next few weeks to work out the details for those who want to cut their own salaries.

Ultimately, it's up to each lawmaker whether they return the pay and whether they do so on a daily rate based on 365 workdays or 260.

Senators can have an amount taken out monthly, do it all at once, or do it once in 2009-10 and the other half in 2010-11.

The lawmakers' agreement to the furloughed pay is in solidarity with their staffs.

Starting in July, about 220 assembly staffers will be furloughed for 5.3 hours each month, said Sheridan spokeswoman Rebekah Sweeney.

Sweeney said the staffers can accrue the furlough hours. For example, three months' worth of deductions is the equivalent of about two full workdays off, she said.

"Spreading it out over the two years will be helpful because we can't shut down the Legislature," she said. "Assembly members still need their staff."

What happens with Senate staffers will be determined by each Senate office, Marchant said, adding that all Senate furloughs and lawmaker paybacks will be done in 18 months so that the Senate seated in January 2011 will not have to deal with the issue.

AREA REPRESENTATIVES SPEAK OUT ON FURLOUGHS

The Janesville Gazette surveyed area lawmakers to see how they planned to handle the furloughs.

Rep. Chuck Benedict, D-Beloit—Said he hasn't spoken with anyone who opposes the idea.

"I only speak for myself, but everybody else is feeling the pinch, and everybody needs to tighten their belt some," he said. "I'm happy to do that, too.

"As members of the Legislature, we're in some sort of leadership role, and people look to us to do the right thing. Frankly, I think we're paying the price for some greedy people in other states, like at Wall Street."

Rep. Brett Davis, R-Oregon—Said he will either write a check back to the state for the equivalent of a 16-day period or have the amount electronically deducted from his paycheck.

"Families and businesses are facing hard economic times and are being asked to work harder for less pay as they are forced to cut back their budgets," he said in a statement. "With a $6 billion budget hole, I believe state government should lead by example and enact cuts to our legislative budget."

Sen. Jon Erpenbach, D-Middleton—Plans to give back 16 days of pay, according to a spokeswoman in his office.

Rep. Scott Gunderson, R-Waterford—Said in a statement: "If state employees are going to be asked to help be part of the solution, elected officials should share in that responsibility by returning a portion of their salaries, as well."

Rep. Kim Hixson, D-Whitewater—Said in a statement that he wants "to help share the sacrifices that all of Wisconsin's working families are facing."

Sen. Neal Kedzie, R-Elkhorn— The Gazette was unable to reach Sen. Kedzie.

Sen. Mary Lazich, R-New Berlin—Said she will not return 16 days of pay as most legislators intend to do.

"I will not give the Democrats and Doyle one penny to waste the way they are wasting it," she said.

Lazich said spending in the Legislature is "obscene," and legislators should focus on tightening belts instead of giving money back to the state.

"I clearly intend to be generous as the economy shakes out," she said. "My sense is my local food pantries and churches and things like that will need help, and I'll be doing things along the way."

Rep. Thomas Lothian, R-Williams Bay—Tyler August, a spokesman for Lothian, said: "With people losing their jobs and state workers being asked to do it and legislative staff likely doing it, too, he just feels everybody needs to tighten the belt a little bit. State employees are being asked, and he considers himself a state employee, and he's going to follow suit."

Rep. Steve Nass, R-La Grange—Supports the effort.

"He knew like all state employees, legislators, judges and other top-level elected officials should return those funds equal to eight days a year," said Mike Mikalsen, the representative's research assistant. "He felt is was the right thing to do under the current circumstances."

Sen. Judy Robson, D-Beloit—Said she signed a form last week to arrange to take the equivalent of 16 days pay out of her paychecks over the next two years.

Legislators can't technically take non-paid days off, as is being required of their staffs.

"We will still work because we're considered seven days a week," Robson said.

But Robson will see a pay cut of $1,094.40 in the coming fiscal year and the same amount in the following year.

Robson noted that senators got a pay hike this year, the first in eight years, but a scheduled 2 percent increase in the 2009-10 fiscal year has been eliminated.

Rep. Mike Sheridan, D-Janesville—"Faced with the worst economic climate in generations and an unprecedented budget deficit, returning 16 days of our pay is simply the right thing to do," Assembly Speaker Sheridan said in a recent statement.