State Use Furloughs to Save Money
❑ States Resort to Furloughs Even as Need for Services Grows - NYTimes.com
New York Times (Seelye, 04.23/2009) reports that, to cope with budget deficits, at least 15 states, including Alabama, Arizona, California, and Minnesota, are considering or carrying out furloughs. Furloughs allow organizations to keep valued employees, are easier and faster to start than layoffs, and are not as demoralizing. When presented as the only alternative to layoffs, employees typically have no choice but to accept them.
Nevertheless, furloughs not only mean a cut in salary but also a cut in service -- “If you don’t have people working, the work isn’t going to magically get done.” The issue is more problematic for public agencies than private companies, because government services tend to be in even greater demand in a weaker economy.