Rhode Island dodges government shutdown
A $68 million dollar budget deficit in Rhode Island continues to cause tensions between the government and state employees. The state government (excluding teachers and a small police force) were scheduled to take their first of 12 un-paid furloughs today, in an effort to shave $21 million off the deficit. Union members asked courts to post-pone the furloughs as it violated the terms of their contract. 12 furlough days would amount to a $4.6 pay cut for most state employees. The Rhode Island Supreme Court ruled in favor of the union and the furloughs have been temporarily blocked. However, Governor Donald Carcieri has announced that the last 1,000 state employees hired will be let go, in order to save the money in another way. States are required to balance their budgets, and the $68 million has to come from somewhere.
See "Rhode Island dodges government shutdown", Tami Luhby, CNN Money, September 3, 2009