The director of the state Department of Finance and Administration said Friday that more than 2,000 state employees could be furloughed starting Tuesday if the federal government does not approve a budget by midnight Monday.
Department Director Richard Weiss told state agency directors in a memorandum that without congressional action, funding for some state programs would expire early next week. The unfunded programs would not be supplemented with state funds, he said.
“All employees will be paid for working Monday, but Tuesday pay will cease for furloughed employees. I regret that Congress has neglected its responsibility to pay its bills but we must plan to fulfill our fiscal responsibility,” Weiss wrote.
The U.S. Senate passed a resolution Friday that would fund the government until Nov. 15 and sent the measure to the House. But Congress is expected to debate the measure through the weekend. No agreement has been reached to avoid a shutdown.
The federal fiscal year will end at 11 p.m. CDT Monday, and if a new budget is not approved, the federal government will be out of money.
Weiss said in an interview that the department was working with agency directors to find out what services and how many employees would be affected. The department estimates that more than 2,000 employees will be furloughed, but Weiss said, “It could be considerably more than that.”
The state Department of Human Services said about 2,500 of its employees would face furloughs.
Agency spokesman Amy Webb said many of the furloughs would be in the Children and Family Services Division, including employees who provide foster-care services and who perform child abuse investigations.
“They work with some of our most vulnerable kids in Arkansas, so that is definitely a concern to us,” Webb said.
Employees who perform eligibility and enrollment services for public assistance also could face furloughs, she said.
Medicaid funding would continue after a federal government shutdown, but Webb said there may be a cut in other services that rely on federal funds, including breakfast and lunch programs for pre-kindergarten children.
Gayle Morris, a spokesman for the state Department of Education, said the agency estimates that 90 of its employees would be affected by a federal government shutdown. Detailed information, including which areas would be affected, was not immediately available.
Ed Barham, a spokesman for the state Department of Health, said the agency was still reviewing its programs and working on contingency plans if federal funds are no longer available. He said it was too early to say how many jobs and services would be affected.
“Many services offered through [the Health Department] are funded by federal dollars and these could be negatively affected,” Barham said.
Matt DeCample, a spokesman for Gov. Mike Beebe, said many state agencies were still gathering information Friday afternoon. He said it was a “fluid situation” in Washington, D.C., but that it was important to prepare the more than 2,000 people who might be affected.
“That’s going to be a concern. That’s a lot of households and a lot of families that will be put in a very tough situation,” DeCample said.
In a separate memorandum, sent Friday afternoon by state Personnel Administrator Herb Scott, agency directors were given a deadline of close of business Monday to determine which employees might be affected. Scott also outlined guidelines for the furloughs, as well as information for payroll personnel.
“Furloughed employees are not allowed to ‘volunteer’ their time to the agency during the furlough period. This extends to use of any state provided resources (cell phones, laptops, state vehicles, etc.),” Scott wrote.
If employees work fewer than 80 hours in a month because of the furlough, they will not receive credit for retirement that month. If employees are furloughed for more than 10 days, they will also stop accruing time off and sick leave.
Some state agencies, including the Highway and Transportation Department and the Department of Correction, said they do not expect to see furloughs or service reductions in the short-term even though they receive federal dollars.
Randy Ort, a spokesman for the Highway Department, said his agency might be affected if the shutdown continues beyond about a week. The bulk of the department’s federal funds comes from the federal Highway Trust Fund, which holds billions of dollars in special tax revenue, and is not expected to be affected by the shutdown, but there could be problems down the road, he said.
“Could there be potential impacts in other ways if the federal government shuts down? It’s my understanding there could be links in the chain” that result in problems like delayed funding, Ort said.
While the agencies continued to develop plans for the finance department, some officials expressed hope that a shutdown could be averted.
“Our hope is that this is something we don’t have to face come Monday afternoon, but we want to at least be prepared in case something like this does happen,” Webb said.
Front Section, Pages 1 on 09/28/2013