Gov. Bev Perdue passed legislation in April 2009 that enacted a mandatory pay-cut for all state employees, including every University’s employees.
The pay-cuts include furloughs, which are temporary lay-offs of employees for the benefit of a company or institution, and are intended to counteract the state’s increasing deficit. Passing this new legislation marks the first time in North Carolina history that furloughs have been imposed.
While the newly elected Governor believes this is a necessary action to pay off an increasing debt, Jim Martin, faculty chair of the University, said the legislation is an unnecessary measure.
Martin said the state is sacrificing time worked and money earned, keeping federal and private money from entering the state economy because of money reserved from paychecks. Martin said implementing these pay-cuts keeps money out of the hands of the people that are spending money to contribute to the economy.
“There will be a significant accounting cost to implement the furlough on non-state funding sources, for which the state will gain nothing.” Martin said. “These furloughs will be applied irrespective of funding source.”
Martin said money retained from the NCSU budget will not remain within the University, reserving funds is necessary in a time where excess spending is unnecessary and considered taboo.
“In the end it is unlikely that the revenue generated from the furlough will outweigh the economic and political cost it will incur,” Martin said.
“It’s not devastating,” Jason Batt, grounds worker with the Facilities Operation Department, said of the half percent per month pay-cut to University employees, “but I will notice it.”
The monthly pay-cut will be lumped into the months of May and June, resulting in a 3 percent pay decrease for each of those months.
When news of the furlough first struck, rumors circulated about how it would affect the University.
“I do think this will effect our education,” said Courtney Harrison, sophomore, who worries students in her major will face a decrease in class choice because fear of possibly drastic funding cuts was instilled following word of downsizing.
“I am an anthropology major,” Harrison said, “not one of the more known majors at NCSU, so I am concerned that my classes will be affected by these cuts.”
Employees were no exception to rumors, such as mandatory pay-cuts from work with no pay to temporary layoffs up to and including 10 days (the time required for mandatory leave amounts to only 10 hours).
Martin and Batt both stated their concern in the range of employees affected. Neither knew why those with lower wages were being equally targeted as those with exorbitant salaries for the 6 percent annual pay-cut. The Governor’s office was unable to clarify.
While downsizing is not projected at this point, job security is a forefront in the minds of employees.
“If it is to save one of my co-workers from losing a job, I will take a pay-cut.” Batt said.
