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Albany Watch

Insights and tidbits from the state Capitol

NY wants more takers on $20,000 severance package

November
20

   After a total of 1,089 state employees received authorization by mid-November to retire with a $20,000 severance payment, Gov. David Paterson’s Division of the Budget is extending the program until Jan. 20 to see if the state can get more participation.

   Paterson ordered a total of $500 million in mid-year budget cuts at state agencies, part of his strategy to close a $3.2 billion budget gap. Agencies can offer the severance packages as a means of helping them make the reductions.

   “It has come to our attention that thousands of employees expressed an interest in participating in the program, but certain agencies chose not to accept these employees into the program,” Budget Director Robert Megna wrote in a letter to commissioners.

   “As you are aware, the State continues to face serious fiscal challenges. To address this situation, the Governor has instructed agencies to aggressively offer severances to reduce the State workforce and maximize savings,” Megna wrote.

   Megna said commissioners should “make every effort to increase the utilization of the Severance Program.” Employees have to file applications under the extension by Dec. 22.

   The Budget Division doesn’t have final numbers of how many employees ultimately took the buyout but expects to know sometime around the beginning of next month, said Matt Anderson, Paterson budget spokesman.
Agency Severance Letter

This entry was posted on Friday, November 20th, 2009 at 1:39 pm by Cara Matthews.
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A behind-the-scenes look at state government and politics from the Capitol bureau of Gannett News Service.
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About the authors
Jay GallagherJay Gallagher has covered Albany for Gannett News Service since 1984 and has been Albany Bureau chief since 1989. He`s a native of the Boston area and likes to point out that in this millennium, the score is Red Sox 1 championship, the Yankees 0.
Cara MatthewsCara Matthews has been a statehouse correspondent in the Albany Bureau since August 2005. Prior to that, she covered Putnam County government and politics at The Journal News for nearly five years. Before that, she worked at newspapers in Connecticut and covered the state Legislature for one of them.

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