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Tuesday, November 30, 2021

Furlough Plan By Governor Ige Will See State Workers Take A 9% Pay Cut Next Year

During a dramatic move to put a stop to the deteriorating financial disaster, the governor of Hawaii David Ige has decided to furlough numerous state workers from the beginning of January for a couple of days every month.

There will be an off on unpaid days that will indeterminately become a pay cut for 9%. Governor Ige has declared the scheme on Wednesday stating that they expect to save almost $300 million each year along with several budget cuts that would be implemented across the state. He also added that furlough is needed to address the projected $1.4 billion shortfalls in the general fund each year for the coming 4 years and avoid the layoff of over 4,000 employees.

Details Of Furlough In Hawaii

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Scott, Saiki, House Speaker, has doubts regarding furlough that will be implemented from January due to the legal challenges, especially from the unions that are expected to be aggressive.

Public workers’ unions have already expressed their displeasure, saying it is a premature and short-sighted plan.

Governor has said he will resort to legal authorities along with other cabinet members.

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The University of Hawaii and the Education Department will also be affected by the furlough though the governor has confirmed that it will not be the same and plans are yet to be finalized.

Ige stated deep cuts to other places as well:

i: Programs will suffer a $600 million cut from 2022.

ii: Countless uncritical vacancies will freeze hiring.

iii: About $197 million will be withdrawn from 2021.

iv: Legislature will slash $205 million.

The budget of the state has already been adversely affected due to the coronavirus pandemic, especially the all-important tourism sector. As a result, economists have cautioned against furlough.

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