State Announces Employee Furlough Plan

ANNAPOLIS, Md. (December 22, 2008) – On Tuesday, Dec. 16, Governor O’Malley signed an Executive Order establishing a furlough and salary reduction plan for all State employees due to the deepening national recession. The plan will save the state over $34 million in FY 2009 and is progressively structured based on each employee’s salary.

“In the midst of this deepening national recession, there are some difficult decisions before us that we wish we did not have to make. After collaborating with labor leaders over the last few weeks, this morning I have signed an Executive Order establishing a furlough and salary reduction plan for all State employees due to this deepening national recession that has us all tightening our belts at work and at home.” Governor O’Malley wrote to State employees in an email on the 16th. “Indeed, the best days in life aren’t always the easiest days. I continue to believe that we will come out of this national recession stronger than ever thanks to the choices we’ve made together to protect our priorities and quality of life.”

Over the past 22 months, the O’Malley-Brown Administration has reduced spending by $2.2 billion, eliminated over 1,500 state positions, and kept budget growth at less than four percent annually. The Executive Order signed today creates a plan that will save over $34 million.

All employees subject to this Executive Order shall be required to forego the equivalent of at least two days of pay, and employees making more than $40,000 will also be required to take 16 or 24 furlough hours on or after January 14, 2009 and before June 30, 2009. Employees earning salaries of less than $40,000 will not be required to take furlough hours, although they will be included in the two days of pay equivalent salary reduction, which are pre-designated for December 26, 2008 and January 2, 2009.

To mitigate the impact of the required two days salary equivalent reduction on permanent employees, these salary reductions will be spread over the remainder of FY 2009. Employees earning greater than $40,000 per year, depending on pay, are required to take additional 16 to 24 furlough hours between January 14, 2009 and June 30, 2009. These additional furlough hours will be in the form of leave without pay, and will be reflected in the actual pay period in which the employees do not work.

Employees in 24/7 health and public safety positions are exempt from these pay reductions.

Source: Gov. O'Malley's Office


Maryland Executive Order 01.01
2008.20, State Employees' Furlough and Temporary Salary Reduction Plan (PDF)

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