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Blagojevich to Announce Early Retirement Program
The Associated Press
February 15, 2004
Gov. Rod Blagojevich is expected to propose an early retirement program when he begins unveiling a new state budget Wednesday, despite questions about the effectiveness of a similar program crafted by his predecessor, according to a published report.
The new incentive program is designed to entice as many as 2,000 workers to retire, which could save the state up to $25 million, the Chicago Tribune reported in its Sunday editions, citing unnamed sources.
The cost-cutting proposals come as Blagojevich's office prepares a budget for the fiscal year that begins July 1. The state is expected to face an estimated $2 billion deficit.
Blagojevich's administration hopes the early retirement program will trim the number of employees under the governor's control to about 61,000. The departments are currently authorized to maintain a work force of about 63,000.
An early retirement program launched by former Gov. George Ryan turned out to be far more expensive than planned. About 11,000 state workers took advantage of the program when only 5,000 or 6,000 were expected to.
Ryan's administration had estimated it would cost between $70 million and $80 million a year for nine years. But that figure has since been revised, and it is now estimated that the program will cost the state $380 million each year.
Blagojevich's proposal would cap the number of employees allowed to participate at 2,000.
The Chicago Sun-Times said Blagojevich is also eyeing tax rules as a way to put more money in state coffers. The paper cited unnamed sources in reporting in Sunday editions that the governor will propose five major changes to tax rules that could result in an extra $102 million by closing loopholes that allow dozens of companies to pay no income tax.
John Filan, director of the governor's Office of Management and Budget, told The Associated Press on Friday that some other cost saving possibilities for the state include recalculating the state's annual contribution to pension systems for government employees and selling some unused state property. He didn't give specifics.
The Democratic governor also is considering a merger of some smaller state agencies, with the most likely targets being the Department of Financial Institutions, the Department of Insurance and the Office of Banks and Real Estate, according to an AP source who spoke on condition of anonymity.
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