FOR RELEASE: Thursday, July 22, 2010

Albany – It is irresponsible for the Paterson administration to suggest the possibility of layoffs within the state
workforce when it is still unclear how many state employees will be leaving state service through the early
retirement incentive (ERI).

The director of the state Divison of Budget (DOB) is quoted in the press suggesting the early retirement
program may fail to reach a savings goal of $250 million and if that is the case, plans for layoffs may have to
be developed. Before deeming the ERI a failure, the DOB should, instead, be pressuring its agency directors to
fully comply with the program.

As was the case with the voluntary severance program offered earlier this year, many PEF members who were
willing to leave state service were denied the opportunity to participate in the program. We anticipate the same
will hold true for the ERI.

It’s unnecessary and irresponsible to threaten to layoff state employees at a time when so many people are
turning to state services during these difficult financial times. We call on the Paterson administration to focus
on making the ERI program a success, rather than planning for failure.

In addition, PEF reminds the governor of the millions the state could save by relying less on high-priced
consultants when research proves state employees can often do the same work for less. One step in the
direction of realizing recurring savings is passage of the cost-benefit analysis bill. The bill has already passed
in the Assembly. It would require a cost-benefit analysis before contracting out state services. PEF is calling
on the Senate to stop taypayer abuse and pass the cost-benefit bill.

PEF is the state’s second-largest state-employee union, representing 58,000 professional, scientific and
technical employees.