State workers receive layoff notices as governor calls Legislature's budget 'defective'

Gov. Mike Dunleavy announced that layoff notices are being sent to state workers on Thursday. He said that’s because the budget the Legislature passed is “defective” because it won’t go into effect by July 1.

“Unfortunately by law, layoff notices have to be sent out by 4 p.m. today. And they’ve been sent out notifying folks that the potential for a layoff is real,” he said.

The governor also said some state programs will stop without a functioning budget. The administration didn’t immediately announce what programs would be shut down and how many state workers would be laid off.

Dunleavy said the failure of two motions caused the problem. One would have allowed the budget to take effect on July 1 — the first day of the new state budget year — and the other would draw from the Constitutional Budget Reserve.

Dunleavy called on legislators to reach a compromise by the end of the special session on Friday. If they’re not successful, he said he would call the Legislature back into a special session starting on Wednesday, June 23.

Read more: https://www.alaskapublic.org/2021/06/17/state-workers-receive-layoff-notices-as-governor-calls-legislatures-budget-defective/