Furloughs are the "only fair way" to deal with state workers facing layoffs as a result of what may be a growing budget shortfall, according to the Utah Public Employees Association.
But one member of a legislative committee looking for alternatives to cutting state government jobs, Sen. Curt Bramble, R-Provo, suggested deferring retirement contributions might be a better option.
Potentially thousands of the state's 24,000 employees could lose their jobs in the upcoming budget year that begins July 1. And that number could climb even higher if the projected $1 billion budget shortfall is even larger when new revenue estimates are released next week.
The UPEA board met in an emergency session over the weekend and put together a list of preferred options to layoffs. At the top of that list is furloughs, said UPEA executive director Audry Wood.
"It's the only fair way," Wood said. "Employees will lose money, but not because they're taking a pay cut." She said the association wants to protect retirement, salary and benefits, including health care.
Mandatory time off saves the state about $3 million a day, Wood said, while ensuring that once the budget crunch is over, employees would earn the same amount and enjoy the same benefits.
Bramble, though, said there are problems with furloughs.
"That wouldn't be my first choice," he said. "What is our primary objective in a time of budget shortfall — is it to protect jobs and keep people working, or is it to protect salaries?"
The senator, one of six members of a bipartisan committee expected to report back to legislative leadership on Wednesday, said time off without pay "hits our state workers in the pocketbook today, immediately."
Bramble said it might be better to look at less-immediate impacts. "If you're 10 years from retirement and find a way to defer retirement contributions, that might be better all the way around."
But he said it's not yet clear that can be done. "I don't know if there's a mechanism to do that," Bramble said.
Senate President Michael Waddoups, R-Taylorsville, has said furloughs seem "to make a lot of sense in case things turn around" quickly for the budget.
House Speaker David Clark, R-Santa Clara, told the Deseret News editorial board he understands that furloughs are "clearly No. 1" with state workers. The UPEA's other suggested options, Clark said, are cutting the state's contribution to the 401(k) retirement savings plan and modifying health-care benefits.
Clark said furloughs mean keeping jobs and maintaining wages over the long term. He said the mandatory time off could be staggered within agencies. Many state workers are already off Fridays as part of a four-day week implemented by Gov. Jon Huntsman Jr. last year to reduce energy costs.
Wood said the UPEA is reluctant to discuss options other than furloughs publicly until the full extent of the budget crisis is known.
"We've given our input," Wood said. "I think everyone's first priority is jobs."
Many lawmakers are predicting the shortfall will be larger, with Clark saying the worst times for the state are at least a year away. "The one that scares me spitless is 2011," the speaker said, referring to the budget year that begins July 1, 2010.
The governor's office had talked to legislative leaders about waiting to finalize the revenue estimates until President Obama's federal stimulus package is approved by Congress, but there was no interest in a delay. Huntsman has said lawmakers want to cut too much from the budget.
He has recommended using more of the state's Rainy Day Fund and additional bonding. The governor's proposed $10.6 billion budget, which does not include stimulus funds, does not call for layoffs and even would cover an increase in employee health insurance costs.
"We're fine to go forward," his spokeswoman, Lisa Roskelley, said.
E-MAIL: lisa@desnews.com