NASHVILLE - Republican Gov.-elect Bill Haslam is sticking by previous statements that he doesn't intend to lay off state employees during his first year in office, but some GOP leaders believe that may not be possible.
Haslam told The Associated Press of his intentions last week and reiterated the plan to a reporter in Jackson while meeting with about 80 West Tennessee mayors and economic development directors who aired concerns about creating jobs, improving infrastructure and expanding tourism.
"What we're first going to do is, there are a lot of unfilled positions that we probably won't be filling," Haslam said. "But rather than going and saying, 'We'll start with mass layoffs' when you're not knowledgeable enough to make those in any strategic way, we're going to go in and learn the government and learn where we think you can make those reductions, and then make those calls."
Finding ways to make deep cuts in state spending is one of the most pressing tasks ahead for lawmakers because federal stimulus money that had propped up the budget is running out. Republicans have an even bigger influence this year in the decision-making process because they control the House, Senate and governorship.
Haslam, who takes office Saturday, said he's shared his plans with House Speaker Beth Harwell, of Nashville, and Senate Speaker Ron Ramsey, of Blountville.
Ramsey told the AP on Wednesday that layoffs may be unavoidable.
"We have a billion-dollar deficit here, and we're going to have to make sure we balance that," he said. "And it's going to be tough to do without layoffs."
Republican Rep. Bill Dunn, of Knoxville, said no one wants to see jobs lost, "but obviously we've got to live within our means and balance our budget."
House Majority Leader Gerald McCormick, R-Chattanooga, said he hasn't spoken with Haslam, but would like to see the state's work force reduced through attrition rather than layoffs.
"I hope we can do it that way," he said.
Haslam told the AP last week that Mark Emkes, the former Bridgestone Americas CEO who has been named the administration's finance commissioner, has begun reviewing plans to cope with a $1 billion cut in state spending after the federal stimulus money runs out this year.
The new governor said it's still too early to specify which areas will be targeted for cuts, but said he plans to hold public budget hearings with each department in the weeks following his inauguration.
As of June there were about 44,000 state government jobs paid for through the general fund, averaging $41,000 in salary and benefits. Another 23,800 people work in higher education, and the state's total payroll has been projected at nearly $2.8 billion.
The current spending plan is paying 314 state employees out of one-time savings that would be a likely target for elimination when the next budget year begins July 1. They include 113 positions in the Department of Children's Services, 71 jobs in Environment and Conservation and 33 positions at Corrections.
House Democratic Caucus Chairman Mike Turner, of Nashville, said layoffs can be avoided.
"We cut just about everything we could cut last year," Turner said. "I'm not saying we can't find some more waste in there, but at the same time, if we don't do a lot of new spending ... I think we can maintain our employees and don't have to lay them off."
Dick Williams, a spokesman for Tennesseans for Fair Taxation, said more layoffs would deprive residents of effective state services and that lawmakers should consider ways to raise additional revenue and not rely so heavily on the state's sales tax.
"We would hope that there would be very few if any layoffs," he said. "We're even concerned about just freezing employment and relying on attrition."
After meeting with the West Tennessee officials, Haslam attended one of a handful of regional inaugural celebrations taking place throughout the state this week, ahead of Saturday's inauguration. About 200 supporters attended.