TRENTON – Gov. Jon S. Corzine on June 24 signed legislation establishing a retirement incentive initiative that, when coupled with attrition, is estimated to cut the state workforce by an additional 3,000 positions in Fiscal Year 2009.

“This incentive delivers recurring annual savings of $90 million beginning immediately, will pay for itself in three years and will continue to deliver amplified payroll and benefit savings in the long-term,” Corzine stated in a release. “Reducing the workforce means a major change for our state government. As I said in my budget address, departments will have to reprioritize their programs and activities and not only have to do more with less; they will undoubtedly have to do less.”

The new incentive is structured with targeted exclusions and a hard cap on backfills, which means the staffing reductions realized will be both significant and long term. As such, the projected cost from the added pension liability ($250 million) would be offset by payroll savings of $264 million achieved within the first three years.

In order to achieve the cost containment and payroll savings, the incentive excludes employees of State departments where the nature of the operations does not permit the imposition of a strict limit on the filling of vacancies. These are typically direct care positions in State institutions that require 24/7 staffing. The “hard cap” would be administered through a five-member Workforce Reduction Planning Board, which would hold the level of positions in each department within a defined range certified by the Treasurer at the end of FY 2008.

The Treasury Department estimates that approximately 3,855 members are eligible for this incentive, with a total assumed participation of 2,144. Coupled with an attrition goal of approximately 1,000, the State workforce will be smaller by about 3,000 positions by the end of FY 2009 and by 5,000 positions since Corzine took office in January 2006.

The legislation (A-2802/S-2044) was sponsored in the Assembly by Assemblyman John J. Burzichelli (D-Gloucester). It was sponsored in the Senate by Sen. Shirley K. Turner (D-Mercer).