February 4, 2009

To Our Leaders and Members:

As you know, the Senate Majority Leader, Assembly Speaker and the Governor announced agreement on a deficit reduction plan (DRP) to eliminate the $1.6 billion anticipated deficit to close out the current fiscal year.

The agreement reached does not address the $13 billion deficit for the next State Fiscal Year beginning April 1^st.

Our preliminary analysis indicates that only one item, a 50% cut in the Parole hypertension study, affects PEF members.  It is possible that the Governor could impose further across the board state agency cuts without legislation, but there is nothing so far that confirms this has occurred.

The Governor’s press release cites $135 million in savings by spending controls in 2008-09, but it appears these savings are the result of actions that have already been taken.

We will continue to review the DRP in more detail to determine if there are any actions beyond those the governor has already taken that may adversely affect our members.

Additionally, I would like to take this opportunity to encourage our members to lobby their legislators to oppose the governor’s budget proposals that cut our jobs, pay, and benefits, and promote our revenue options that can be used to pay for the restorations we propose.

In Solidarity,

Kenneth Brynien,

President