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Washington State Institutes Mandatory Furloughs for Most State Employees

This is likely just the beginning.

by Eric Holdeman / July 7, 2020

That is a 20 percent cut in pay ...

And so it begins ..."Washington State Gov. Jay Inslee has implemented mandatory furloughs for most state employees – a temporary layoff and reduction in pay – to save state funds." In a Department of Commerce announcement, "Impacts of the ongoing COVID-19 pandemic are causing a severe downturn in state revenue collections. Commerce is implementing these furloughs for all staff. We will not be available for work on Monday June 29, and Fridays July 10, 17 and 24."

The state of Washington is going from "feast to famine" in the course of five months. Revenues were very high in 2019 and early 2020, and now this. I don't expect this reversal of fortunes to change anytime soon. We are a state without an income tax and therefore sales taxes are what sustains much of the state budget, which has a significant obligation to public education.

I expect school systems will soon start to feel the pain too. With no turnaround in sight, we'll be battling the virus and budget shortfalls for at least 12 months and maybe more. 

Buckle your financial seat belts, it is going to be a bumpy ride!

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