NASHVILLE — Gov. Phil Bredesen announced this morning the state will reduce the state’s work force by 2,011 employees in order to deal with plummeting revenue.

The governor said he hopes to make most of the job cuts voluntarily. The state will offer early voluntary buyout packages to some state employees; younger workers may be eligible for incentives that could include health insurance and free tuition at colleges.

“We have not fully determined how to work a voluntary plan,” Gov. Bredesen said. “But what we’re planning to do is try and do this as a buy out to offer to employees who are here, who want to take advantage of cash payments ... in exchange for relinquishing those jobs.”

But the governor made clear that if voluntary buyout do not work, layoffs will be needed.

The layoffs will account for about 5 percent of the state’s work force. Officials hope to achieve permanent budget savings of $64 million as a result of the layoffs.

Gov. Bredesen said that while he will provide regular inflationary growth for the state’s BEP plan, which funds education, the proposed $86.5 million for the so-called BEP 2.0 will be cut from his proposed 2008/09 budget.

He also estimated higher education will take a $55 million cut, and plans for some TennCare expansions could be scaled back.

Gov. Bredesen is dealing with worsening revenue conditions that are forcing him to cut his proposed 2009 budget by as much as $468 million.

On Tuesday, the administration abandoned efforts to pass a massive water resource planning bill. The bill would have required local utility districts to submit plans to the state on future growth as well as drought.

“They said they don’t even have the money if somebody submits a plan to do it, to review it,” said Sen. Andy Berke, D-Chattanooga, the bill’s Senate sponsor. “I know that anything that involves new dollars is being scrutinized beyond what it would usually get.”

Gov. Bredesen also is withdrawing a bill that would let law enforcement to revoke a suspected DUI offender’s driver’s license before their court hearing. The bill would add 75 new state positions.

In a letter to Senate Finance Committee Chairman Randy McNally, R-Oak Ridge, a bill sponsor, the governor said Tuesday that “due to the serious budget constraints we are facing, unfortunately it is not possible to add dozens of new positions to administer this measure at the same time we are planning work force reductions across government.”

The governor said he is “disheartened” he cannot pay for the proposal.

“Let me assure you. I remain committed to exercising every option available for taking drunk drivers off the road,” he added.

With regard to employee layoffs, Majority Leader Odom said some younger employees may be interested in going back to school and “there are some things that can be done there to assist that.”

For complete details, see tomorrow’s Chattanooga Times Free Press.

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