Bacon's Rebellion

Democracy Thrives in Sunlight

Oh, the Pain, the Pain! Fifty State Employees (out of 119,000) Might Get Laid Off!

—

by

James A. Bacon
in

The Kaine administration may have to lay off state employees to help close an anticipated $640 million revenue shortfall. The total number of jobs to be eliminated could number “several hundred,” according to the Washington Post. But Gov. Timothy M. Kaine hopes to accomplish most of the reductions through attrition and retirement. The number of lay-offs could be “fewer than 50,” according to the Times-Dispatch.

Finding 50 employees to lay off shouldn’t be too difficult in a workforce that numbered nearly 119,000 in June. That’s up 8,300 since Kaine took office in January 2006.

In fairness to Gov. Kaine, 85 percent of that increase can be accounted for by a hiring spree at Virginia’s institutions of higher education, which operate with considerable autonomy, not at state agencies under the governor’s direct control. When you deduct higher ed from the state employee count, however, the number of employees still has increased more than 1,140. On the other hand, the Virginia Information Technologies Agency shows a 647-person reduction in employee count, which, I presume, reflects the outsourcing of jobs to Northrup Grumman. The jobs are still there, they’re just accounted for differently. So, a fair number would be closer to 1,800.

The much-maligned Virginia Department of Transportation has been the productivity star of the Kaine administration, reducing its head count by 512. Big gainers have been the Indigent Defense Commission, the Department of Health, the Department of Alcoholic Beverage Control and the Virginia Port Authority — the last two of which are business entities.

Question One: Where are the promised productivity benefits from handing over IT functions to the much-touted VITA? From the rumblings I’ve heard in the trenches, VITA has increased agency overhead costs without adding much value.

Question Two: What approach is the Kaine administration taking to its budget cuts? Is it applying the ol’ 5-percent-across-the-board formula, which afflicts every agency equally? Are the Kaniacs making special dispensations for investments and reorganizations that would cut spending down the road, or are productivity-saving initiatives sharing the pain with everything else?
Question Three: I know student enrollments are up at state colleges and universities, but are they up enough to justify a 15 percent increase in the number of employees in the state higher ed system in less than two years?

For your viewing convenience, I have extracted, condensed and consolidated the data from Jan. 2006 and June 2007 so you can analyze the numbers yourself. Click here to see the Excel file. (Higher ed institutions are shaded in light yellow.)

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20 responses to “Oh, the Pain, the Pain! Fifty State Employees (out of 119,000) Might Get Laid Off!”

  1. Reid Greenmun Avatar
    Reid Greenmun

    Great questions!

    I also have to wonder how many individuals are perfroming public relations jobs for the state and its various agencies?

    Surely the state could lay off 50 people that are performing PR work.

    Not one citizen would notice any change in state services as a result.

  2. Larry Gross Avatar
    Larry Gross

    this could be viewed as a trajedy for the tax and spend folks..

    but hey… for our fiscally Conservative friends – this is OPPORTUNITY for that bold thinking we keep talking about.

    This is a way for them to demonstrate to all voters that there is much, more to Conservative Republicans than immigration, Virginia “Values”, and other fodder for the Social wing of the party.

    If Virginia Republicans want to win back those purple/bluish areas – I would submit.. that a vision for a more efficient and more effective government – would help reverse the trend.

    Hint – reported recently: “…(retiring) Sen. John Chichester, R-Northumberland, who chairs the Senate Finance Committee, did not participate in the letter to Kaine (opposing the use of the Rainy Day fund) because, he said, it offered no solutions.

    “I chose not to put my signature on the letter. While I agree with non-use of the rainy day fund, I do not believe in offering the governor suggestions of what not to do unless you offer suggestions of what to do,” Chichester said. “To do otherwise does not show leadership, and if we’re going to try to guide Virginia out of this downturn, then we ought to be working on it together and not politicizing it.”

    http://www.fredericksburg.com/News/FLS/2007/092007/09182007/318172

    so .. once again.. opportunity for those who profess fiscal restraint…

    lead.. follow.. or talk about what you’re opposed to….

  3. Anonymous Avatar
    Anonymous

    With respect to question #3, Prior to the more recent increases in student enrollments, state universities were already operating with a shortage of full-time faculty members and supporting staff. In many cases the positions existed but were vacant due to budget cuts and limitations set in the VA state budget. (I believe the largest cuts occurred in 2002 – sorry I’m going from memory here) A significant portion of the so called “hiring spree” in higher education merely adjusted for this prior shortage.
    Also, state universities do not have as much autonomy with respect to spending as your post implies. The state budget specifies appropriations for capital projects, operating expenses including raises and promotions, new positions, etc.

  4. Reid Greenmun Avatar
    Reid Greenmun

    In regard to higher (post K-12) education – shouldn’t those that use the service – pay for it?

  5. Anonymous Avatar
    Anonymous

    No one ever lost political points beating up on public employees. Right on! Maybe all those that are laid off are young and have no spouse or children so that they could move back in with their parents and take their parents off of Medicare that would save the taxpayers mo’ money. With SunTrust, Wachovia, and Land America recent layoff, it should be easy to find another job in Richmond. Perhaps they should move to NoVa and get a job with VW? Hey, my father had to move to get a job, why not anybody?

  6. anonymous(2:30) Avatar
    anonymous(2:30)

    Reid,
    if the benefits of higher education only accrued to the individuals who received it, then yes, those who use it and gain from it should pay for it. However, the whole basis for public universities is that such education services provide benefits to not only those who ‘use it’ but to the rest of society/economy. This is why in-state tuition is subsidized. Even if you ignore the public benefits of higher education, between 1994 and 2004 VA state universities did not have the ability to raise their own tuition rates. After the tuition freeze was lifted universities were permitted to set individual rates, however, all tuition revenue generated goes into a general state fund and is appropriated according to state budget. There is no guarantee that individual universities will receive the tuition revenue it collects.

  7. Groveton Avatar
    Groveton

    Jim:

    My figures are different than yours. I am using total employees – not just state employees. However, I think the points are made with either set of numbers.

    The University of Virginia added 1,225 employees in the last year. Over the last year they have added 375 students.

    Source -http://www.web.virginia.edu/IAAS/data_catalog/institutional/data_digest/enrl_school.htm.

    In 1990, the University of Virginia had an enrollment of 18,137 students. Today (2006) it has an enrollment of 20,397. A total 16 year growth (NOT annual growth) of 12.4%.

    Source – http://www.web.virginia.edu/IAAS/data_catalog/institutional/data_digest/enrl_school.htm

    In 1990, the state of Virginia had a population of 6,187,358

    Source – http://www.virginiaplaces.org/population/pop1990numbers.html.

    In 2006, the state of Virginia had a population of 7,642,884. A total 16 year growth (NOT annual growth) of 23.5%.

    Source – http://quickfacts.census.gov/qfd/states/51000.html

    In 1990, the University had a full time, salaried workforce of 9,358. In 2006, the university had 11,962 full time employees. This is a 16 year increase of 27.8%.

    Source – http://www.web.virginia.edu/iaas/data_catalog/institutional/historical/employees/ft_by_gender.htm

    So, UVA has grown its enrollment at about half the rate of growth in Virginia’s population.

    It has grown its employment (not even counting the last really ridiculous year) by 28% while its student base has grown 12%.

  8. Larry Gross Avatar
    Larry Gross

    re: publically-funded higher education

    I don’t buy it.

    Using that kind of logic – we could justify tax dollars for virtually any purpose.

    I’m opposed to anyone who has the means receiving any subsidy for college.

    I’m in FAVOR or means-testing to determine how much assistance.

    Further, I’m totally in favor of a completely-paid for college for ANY child that gets good grades – if their parents lack the financially ability.

    This would – put pressure on the schools to provide truly fair and equivalent educations to those who are economically/demographically disadvantaged AKA NCLB.

    It would also give those kids – a reason to get good grades even if their parents were not as supportive as parents with higher educations and economic advantages.

    In general – no subsidies – but rather means-testing to help those who truly have the need.

  9. Anonymous Avatar
    Anonymous

    For those who believe everything in government, including higher education, should be funded directly through usage fees and never, never taxes:

    How far does your logic extend?

    Should the police departments only be funded by fees from those who report a crime? What about the fire department – you should only have to pay a fee to them if your house catches on fire? And if you don’t use an ambulance, why should your tax money go toward that?

    Hey, here’s an idea: only those families with school-aged children have to pay for K-12. Why should that burden fall on the elderly or those without kids?

    No more free library books? Just like Blockbusters Video, you pay to take it home, with late fees of course!

    And the DEQ should only be funded by those who use the outdoors, right?

    I’m just curious. Where is end of that logic?

  10. Anonymous Avatar
    Anonymous

    Larry –
    You may or may not agree with subsidized education but that is EXACTLY what an in-state tuition rate IS. Residents of a particular state pay a discounted rate for tuition when they attend a school in their state of residency. Out-of-state students pay the actual tuition rate.

  11. Anonymous Avatar
    Anonymous

    Groveton –
    I am having some difficulty following your reported figures for increased enrollments and employees at UVA over the past year. Following your link, FT salaried workers in 2006 academic year is 11,962 and is 11,792 in 2005. Adding PT employees of 1,223 in ’06 and 1198 in ’05 results in an increase of 170 FT employees or 195 total employees.

    What data did you use to come up with 1,225 new employees last year?

    With respect to enrollments your figure of 20,397 in 2006 does not include off-grounds headcount. Given the significance of satellitee campuses and distance learning, the off-grounds figures should be included for more accurate representation. Thus, enrollments in 2006 total 24,881 and 24,448 in 2005.

    Further, the methodolody used here is faulty. A university’s mission extends beyond solely providing college classes to include research, development, and an array of services (which may include medical, legal, etc. depending on the specific institution) The use of student enrollment as a proxy for university output and total employees as university input is completely inaccurate. This is the problem with using aggregate data in this manner – you have thrown in everything but the kitchen sink as your input and examine only only element of the university output and then wonder why the numbers seem so skewwed. Consequently, your points are simply invalid.

  12. Anonymous Avatar
    Anonymous

    C’mon Larry – you really do not believe that there are social benefits to having an educated workforce? Or do you just not want to agree with an argument that would justify any tax and spend policy? Ok so no public funding of education just be sure you do what Allen did as Governor when he cut funding for education, use the funds where they will be needed …build more jails.

  13. Larry Gross Avatar
    Larry Gross

    oh I think it is VITAL that we have a TRULY educated workforce – which is way, way more than College-educated folk with others being essentially undereducated to the point where they cannot compete for world-economy technical jobs – and instead are relegated to service jobs.

    The emphasis should be to produce a world-competitive workforce for the MAJORITY of our kids that CAN, with the appropriate education, SUCCEED and not become so crippled economically as to require high taxes on those college-educated folks.

    I support public funding for ALL kids for the basic workforce education and I support public funding for those kids who do not benefit from economically-advantaged parents.

    But I do not support publically-funded programs to further enhance and assist those who have the economic means to pay.

    We don’t need to ‘cut’ education. What we need is to have folks who can pay their own way especially for enhanced programs and services and higher education – to do so and the costs to taxpayers will be much more reasonable.

    Our current education system is not geared to true workforce education but rather as a subsidized “benefit” for those who want their kids to be given for free.. what they don’t want to pay for – and it’s done at the expense of kids who do not have parental advocates to demand that their kids receive appropriate educations that are technical and not college.

    Check out the other industrialized countries – in terms of test scores and more importantly in terms of their educated technical workforces.

    Manufacturing is no longer the safety net for kids who do not go on to college.

    Those kids need strong technical education…if they are to compete for world class jobs – and more importantly if this country is not going to end up with a entitlement-dependent underclass – funded by college-educated workers.

  14. Anonymous Avatar
    Anonymous

    “Question One: Where are the promised productivity benefits from handing over IT functions to the much-touted VITA? From the rumblings I’ve heard in the trenches, VITA has increased agency overhead costs without adding much value.”

    I am please to see this question asked. I have heard that it increased overhead costs significantly with little benefit. And that many agencies have had to eat these costs by cutting other programs.

    “You may or may not agree with subsidized education but that is EXACTLY what an in-state tuition rate IS”

    My understanding is that in-state tuition is granted to students who have lived in state for a period of time in acknowledgement that they – or more likely their parents – have contributed to the educational institutions via their taxes already.

    Deena Flinchum

  15. Anonymous Avatar
    Anonymous

    “My understanding is that in-state tuition is granted to students who have lived in state for a period of time in acknowledgement that they – or more likely their parents – have contributed to the educational institutions via their taxes already.”

    Yes, Deena, that is true. It is still considered a subsidized rate, though. In-state students pay less than out-of-state students with the state making up the difference. Even though residents have contributed to this pool of funds via their taxes the amount of benefits received by each family may or may not be equal to their respective contributions. So, in effect, at the individual family level some receive subsidies some are taxed (i.e. consider the family that pays taxes and sends their child to private school.)

  16. Anonymous Avatar
    Anonymous

    Larry – you raise some important issues. I wholeheartedly agree that our education system should prepare our (future) workers to be competitive in the global market. One aspect includes technically-trained workers. The caution here is how to be sure that we dont train workers to be skilled at something so specialized that workers become unemployable when the skill becomes obsolete. In this case the current high-paying tech job may just be the new ‘assembly line worker’.

    The other aspect includes the continued training and/or encouragement of our students to be creative, innovative, thinkers and problem solvers who can adapt to change. Skills and abilities that will keep our workers and nation competitive. The difficulty lies in how best to do this. My personal view is that in a time of increased accountability and assessment of learning standards we may be generating a workforce of test takers rather than thinkers. I, of course, understand the purpose of such measures, it is the actual (or potential) outcome that I believe that leads to more harm than good. Sorry – I could go on and on here in detail but it’s really another conversation.

    Back to your response: “What we need is to have folks who can pay their own way especially for enhanced programs and services and higher education” Perhaps, but the administration and enforcement of this principle is problematic. What about folks who by some standards can afford to pay for child’s education and choose not to do so. Should the student/child be penalized? Even with the current system there are a number of students who work to provide their own education in spite of families who ‘can afford it’.

    “and more importantly if this country is not going to end up with a entitlement-dependent underclass – funded by college-educated workers.”

    The growing sense of entitlement is probably the most potentially damaging. However, I see the entitlement attitude across all income levels. Look at the growing number of complaints by college educators of student belief that they are entitled to higher grades, to miss assignments (without penalty), to have the course accommodate their personal schedule, and that a college degree entitles them to a job, a high-paying one at that. Our college-educated workforce will not be very competitive with this entitlement attitude, as well.

  17. Groveton Avatar
    Groveton

    Anon – 1,225 number came from Jim’s Excel spreadsheet – D70. It seemed like such a high number that I abandoned it and tried to look at the period from 1990 through 2006 using available data from the internet.

    All my comparisons are for the period 1990 – 2006. My point about the 1,225 additional employees between 2006 and 2007 was only meant as a note to tie back to Jim’s original post and related spreadheet.

    I excluded off-grounds headcount. I did not know what that meant when I went to UVA and I don’t know what it means now (almost 30 years later). I also suspect that much of that headcount is in non-degree granting programs which, I believe, makes them “apples and oranges” with regard to the degree granting programs. In addition, my analysis was focused on the changes in VA population, UVA enrollment and UVA employees over the period from 1990 – 2006. If “off grounds enrollment” had significantly changed during that period it might have made a difference in tha analysis. In fact, off ground enrollment was 4,818 in 1990 and 4,484 in 2006. The enrollment went down, not up. Including these students would only have served to further highlight the incongruity of UVA’s enrollment growth vs. Viginia’s population growth vs. UVA employee growth.

    Your assertion that my points are invalid is difficult for me to understand. I believe that a critical responsibility of any state university is to educate the citizens of that state. When UVA grows enrollment at one half the growth rate of Virginia’s population they fundamentally fail in achieving tha part of their mission.

    Regarding research, UVA is a complete lightweight in research when measured by the amount of money coming in through research grants. This was discussed at length in a recent Baconsrebellion column and can be found in the achives. The massive addition of employees has failed to make UVA national force in research.

    Regarding UVA Medical Center, I don’t have data going back to 1990 but I do have data going back to 1996. Please see:

    http://www.web.virginia.edu/iaas/data_catalog/institutional/data_digest/hosp_stats.htm

    The increase in volume at the Medical appears to be negligable.

    Anon – In the future I would urge you to try to use facts with sources to bak up your contentions. While I know that the concept of using facts is foreign to the arguments put forth by UVA apologists I belive they are rather necessary to an informed discussion. At least that’s what I was taught back at UVA.

  18. Larry Gross Avatar
    Larry Gross

    anon 9:59am

    you bring up some good point also.

    I’d say that we need a curriculum for technical that is equivalent to “college prep” and it be called “technical prep” or so.

    But.. I would dispute the idea that only college-bound are or have a need to be “creative” or “innovative”.

    Many Technical job disciplines need these same attributes.

    and I further have problems with our current system.. that essentially configures the curriculums as college-bound, creative and innovative .. and everything else ias … vocational…and mostly rote.

    but the real problem is.. that many of our schools simply don’t think that folks that are not on a college track.. need to know how to read and write…

    that’s exactly what the testing .. you know that terrible.. onerous NCLB testing.. is showing..

    Have you ever tried reading a “technical manual” lately…???

    I’ll challenge many College Educated to do so.. and in fact, I can prove that many.. College Educated.. cannot understand a simple computer or even a tv remote manual…

    So.. I agree.. you don’t want to teach specific technical skills that might end up obsolete – any more than you want to encourage college-bound kids to take obscure courses with meager job prospects in the real world.

    But all of this boils back to what basic skills to kids need to grow up and compete for world jobs – that are technical and not collegiate?

    Right now.. many of our schools do not even have this as a serious part of their curriculum.. and, in fact, many of them are complaining about NCLB .. forcing them to test – at the expense of creativity and innovation.. which I perceive as code words.. for “dumming down” the college-bound kids.

    In other words.. no quality technical educations.. for kids on a technical track…

    this is where the other industrialized countries are .. cleaning our clock…

    .. and .. if we don’t change.. we WILL end up with a substantial underclass that expects entitlements….

    listen to folks.. like Gingrich and Gates – political opposites – saying the same thing on this issue.

  19. Anonymous Avatar
    Anonymous

    Larry –
    “But.. I would dispute the idea that only college-bound are or have a need to be “creative” or “innovative. Many Technical job disciplines need these same attributes.”

    I do agree here, as well. I did not mean to imply that technical knowledge and creativity should be mutually exclusive. Given the dynamic nature of the economy, the ability to adapt one’s skills to new situations will be vital across the board. Yet, your questions remain: what to teach, how best to prepare students, and how to ensure some minimum level of quality? All important ones, indeed.

  20. Anonymous Avatar
    Anonymous

    Dig deeper on the VITA issue. Many agencies are paying more, not less, than they were previously. When the dust settles, many agencies will have created “shadow business units” to pick up the administrative cost VITA has created.

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