Tennessee Volunteers? 

State offers employee buyouts.

The state of Tennessee is testing the volunteer spirit of its employees in an upcoming round of voluntary job buyouts.

Without a state income tax, Tennessee relies on sales tax as a major source of revenue. Lola Potter, public information officer for the state department of finance and accounting, explains that those proceeds have plunged with consumer confidence in recent months, along with other funding sources. Now the state needs to trim $468 million from the next fiscal year's budget.

As a result, the state government extended 12,000 buyout offers to employees, and hopes that 2,200 of them will accept, thereby saving Tennessee $64 million in recurring costs. The buyout program's total cost to the state is $50 million.

"Each agency has its own plan," Potter says. "There is not a mandate of how they'll operate. The mission they were given is to find a way to deliver services without any effect on the quality, with 5 percent fewer employees."

The buyout package includes four months salary, an additional $500 bonus for each year of state employment, payment of accrued leave, and two years of tuition assistance for volunteers wishing to continue their education at a state college. Buyout volunteers can reapply for a state job two years after accepting the deal.

Whether the economy will improve by then, however, is anyone's guess.

"There's a lot of argument among economists if this is going to be a long recession or something we recover from this calendar year," Potter says. "Our thinking had been that we'd pick up toward the end of the calendar year. Now a lot of economists don't think that's going to happen. The reason we wanted to reduce the budget is just in case we're sitting here this time next year without seeing any [economic] growth."

The program is voluntary for now, but the state may lay off employees to reach its target numbers.

State government ranks as the tenth-largest employer in Memphis with 5,247 locally based staffers (about 1,200 fewer than Wal-Mart stores).

Local departments that could be affected include agriculture, child services, department of corrections, environment and conservation, health, and veterans' affairs. A complete list can be accessed at www.tn.gov.


Subscribe to this thread:

Add a comment

    • Crosstown, Greensward, and U of M

      Crosstown open pushed back, money flows to Greensward project, and U of M board meets
    • Campus Crime

      TBI findings show a decrease in sexual assault


News Blog

Alexander to TVA: Don't Buy Wind Power

Intermission Impossible

Hattiloo Announces Season 12: August Wilson, Lynn Nottage, Soul Train...

News Blog

Memphis Theological Seminary Stands with Refugees

News Blog

Fight Over Forrest Statue Isn't Over

Fly On The Wall Blog

Remembering the "Miracle Child" Robert Raiford

Memphis Gaydar

Bathroom Bill Halted in TN Legislature

News Blog

RIP Robert Raiford

News Blog

Memphis Pets of the Week (March 23-29)


More by Preston Lauterbach

  • Do You Hear an Ecko?

    A throwback record label fights to survive in the new music business.
    • Sep 11, 2008
  • The List, Part II

    MLGW cracks down on non-resident employees.
    • Jun 26, 2008
  • Memphis Eccentrics

    Four profiles in quirk-age.
    • Jun 5, 2008
  • More »

Readers also liked…

© 1996-2017

Contemporary Media
460 Tennessee Street, 2nd Floor | Memphis, TN 38103
Visit our other sites: Memphis Magazine | Memphis Parent | Inside Memphis Business
Powered by Foundation