Tennessee is offering state employees buyouts
Tennessee offered buyout packages to select state employees this week, a $20 million effort officials say will save money and promote “organizational efficiency” down the road.
The buyouts, which are being called a “voluntary separation program,” were offered to roughly 625 employees who are eligible, though 282 positions are targeted to be cut as part of the deal, according to a letter sent to members of the state legislature Monday by Juan Williams, commissioner of the Tennessee Department of Human Resources.
The initiative is the result of an efficiency study performed by the international consulting group Mckinsey & Company, though Gov. Bill Lee’s administration has refused to release a copy of the $1.5 million report.
Multiple people with knowledge of the study, who spoke earlier this year on the condition of anonymity because they were not authorized to discuss the initiative, said the report recommended the state reduce its current number of management positions in the executive branch.
The legislature last year budgeted $50 million for a forthcoming buyout initiative, but dropped that figure to $20 million this year ahead of implementation.
Environmental, Human Services, Finance, Education departments targeted most
A few departments in particular are being targeted for the staff reductions, including 74 positions up for elimination in Environment and Conservation, 64 in Human Services, 51 in Finance and Administration and 32 in Education, according to Williams’ memo.
Employees have until Sept. 6 to apply for the severance packages, which include a lump sum payment equivalent to five months of salary, advanced longevity pay, $6,000 to go toward health care coverage and payouts of unused leave.
Those who apply will be notified of their acceptance or denial for the program in October.
Asked whether the state intends to make involuntary cuts if it doesn’t receive a certain level of participation from eligible employees, Human Resources spokesperson Amanda Adams noted the current program is voluntary.
It seems the door is open for other cuts in the future, however.
“There are some departments that may take additional steps in accordance with their organizational plan at the conclusion of the VSP,” Adams said in a statement. “Any employee that may be potentially impacted will be made aware well ahead of time and presented with all available options prior to the VSP deadline.”
The Department of Human Resources has not provided projections on how much the state believes it will save long-term. Employees receiving the buyouts “generally” aren’t eligible to be hired back by the state for at least five years, Williams wrote.
In the letter, legislators were encouraged to contact Holt Whitt, House Speaker Cameron Sexton’s former interim chief of staff, with questions.
Whitt was hired earlier this month as a senior policy adviser for Human Resources.