Legislative Bulletin

August 3, 2001


Easley fires 278 state workers to ease budget crunch
Gov. Mike Easley on Monday directed agency heads to give notice to the 278 employees whose positions are being eliminated as part of an overall effort to deal with the state budget crisis. Employees in positions that the Senate, the House and agency heads have agreed to cut will received their 30-day notice of termination beginning Tuesday.

Easley ordered his cabinet secretaries and asked Council of State members to proceed with layoffs that will not impact vital services. There are an additional 609 vacant positions that are also being eliminated. Many of the jobs are in the Department of Health and Human Services and state university system.


"Like any business or family, state government must live within its means," said Easley. "These layoffs are part of what we must do to begin to get a balanced budget."

Easley's directive means that the employees will receive 30-day notices of termination beginning Tuesday. House and Senate budget plans called for eliminating the jobs in order to balance the state budget in the face of declining tax collections. Moving ahead with the layoffs before a state spending plan is finalized will prevent lawmakers from having to find additional savings to balance the budget.

Last month, Senate Republicans charged that 2,914 state jobs that have been vacant for nine months or more and that eliminating all of them could save the state $89 million. But state officials said that number includes many jobs that are funded outside the General Fund, including many paid through highway use taxes, research grants, federal funds and agency receipts.

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