For solving the NC state budget, if the Service Employees International Union (SEIU) is suggesting that the jobs can be completed in 4 days rather than 5 day, then I would suggest that North Carolina should lay-off 20% of the SEIU member employees. That could be a permanent savings. Isn’t SEIU one of President Obama’s largest supporting Union? Isn’t SEIU the Union that goes “onto” business managers and/or business owners’ “personal homes” properties to scare and/or intimidate the business managers and/or business owners in their own homes. – Oscar Y. Harward
http://fayobserver.com/articles/2011/02/15/1071574?sac=Local
RALEIGH (AP) - Working to close next year's budget gap without layoffs, the union representing state employees on Tuesday released a report that its members say contains more than $10 billion in savings or revenue options that the governor and lawmakers should consider first.
The report by the State Employees Association of North Carolina recommends allowing four-day workweeks, consolidating state health services and ending corporate incentives and special tax breaks to the motorsports and film industries.
Democratic Gov. Beverly Perdue is expected to release her budget Thursday. Perdue and Republican legislative leaders have said layoffs are likely in the next budget year as negotiators try to close a projected budget gap of between $2 billion and $3 billion.
Perdue also has said her government consolidation would create redundant state positions.
"Let's all come to the table but don't make public employees bear the entire burden on the state budget," SEANC Executive Director Dana Cope said during a news conference with state employees at his side holding placards promoting the "Take Pride in Carolina" report. "Let's share sacrifice and make sure companies pay their fair share."
The group, a local of the Service Employees International Union, says cutting the work force is a short-term solution that results in reducing critical services for North Carolina's citizens.
The bulk of the savings outlined in the report relate to hospitals and health care. The report says $4.5 billion could be saved by requiring nonprofit hospitals and health care systems to give up a portion of their capital reserves to alleviate the projected gap. That's because the union says the hospitals accumulate large reserves through an indirect tax subsidy.
Yet North Carolina Hospital Association spokesman Don Dalton calls the argument a mistake, saying hospitals lost $1.2 billion treating Medicaid patients and the uninsured last year.
"Hospitals earn their tax exemptions every day," Dalton said in an e-mail, adding that taxing capital reserves "would have a negative impact on regular operations, despite SEANC's contention."
The report said the state could save nearly $1.5 billion through health care changes, primarily by consolidating what it calls four health care systems in the state - for prisoners, state employees and teachers, Medicaid patients and high-risk citizens that can't afford regular insurance.
In addition, extending a pair of temporary taxes set to expire this year would create another $1.3 billion in revenue, according to the report.
Republicans have been adamant about letting them expire, although Senate leader Phil Berger, R-Rockingham, told reporters earlier Tuesday that "if there are suggestions that are out from state employees or from anyone, we are interested in hearing what they are."
Other report recommendations include:
- creating a four-day, 10-hour work week, at a savings of $600 million.
- abolishing the Golden LEAF Foundation, which receives half of North Carolina's share of the national tobacco settlement, at a savings of $570 million.
- increasing the cigarette tax by $1 per pack, generating $454 million.
- requiring multistate corporations to file tax returns that give a more complete picture of their North Carolina activities so they are taxed according to their business in the state, generating $375 million.
- eliminating corporate tax "loopholes" for certain industries, such as motorsports or the film industry, at a savings of more than $31 million.
- require Department of Transportation mowing contractors to pay for road signs they damage, saving $10 million.
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