Lingle orders furloughs for state employees to meet revenue shortfall


POSTED: Tuesday, June 02, 2009

;[Preview]    Governor Lingle's speech

Governor Lingle's full speech on the state budget.



Facing a $729 million budget shortfall by fiscal 2011, Gov. Lingle this afternoon ordered all state employees to take furloughs three days a month for the next two years. The furloughs are to start July 1, Lingle said in a statewide television address.

The three-day-a-month plan would save $688 million, Lingle said.

After implementing the furloughs, the state will still need to save an additional $42 million. This would be done by scaling back health benefits for the poor.

Lingle said university and public school and hospital employees would not be furloughed, but their departmental budgets would be cut by an amount equivalent to the savings that furloughs would result in.