State employees sent to counsel colleagues after budget cutback

JEFFERSON CITY, Mo. -- State employees who normally help private sector workers cope with layoffs will instead be counseling fellow government employees in an unusual twist caused by state budget cuts.

The state Department of Economic Development said Friday that it was sending a "rapid response team" to help more than 40 state employees losing their jobs because of the closure of the Show-Me Challenge camp for troubled youths.

The Nevada boot camp is closing Jan. 15 because of state budget cuts announced earlier this week. Supporters have initiated a fund-raising campaign to try to save the camp, but so far are short of the $500,000 needed to run the next session, which was scheduled to start Jan. 18.

The camp has been operated through the Missouri National Guard in the state's Department of Public Safety.

State Economic Development Department spokesman Jim Grebing said his agency was treating the layoffs like any similar announcement by private industry. In 2002, the department activated response teams after 109 layoff announcements.

"We're handling the state just like any other employer that does layoffs," Grebing said. "We'll potentially be doing more of these."

State budget officials announced 96 layoffs Thursday, half coming from the Department of Public Safety. Grebing said the layoff response teams generally are activated only when there is a significant number of layoffs at a particular site. The camp closing qualified.

The response teams consist of employees in the department's Division of Workforce Development and people from local career centers and workforce investment boards.

80 percent success

The teams hold group or individual meetings with employees to inform them about unemployment benefits and refer them to local career centers. Response teams also could help laid off employees with such things as interviewing skills or resumes.

Historically, about 80 percent of the people assisted through the program find new jobs, the Economic Development Department said.

Missouri's $67 million budget cut announced Thursday covers only a portion of the projected $300 million shortfall by the June 30 end of the fiscal year.

Budget officials are hoping to make up most of the difference by proceeds from bond sales secured against the state's future tobacco settlement revenue.

On Friday, the state Department of Revenue said Missouri's net general revenue was down 2.95 percent through December, which marked the halfway point in the 2003 fiscal year.

The state's $18.9 billion budget was based on an assumption of 3.1 percent growth in general revenue, which consists of such things as state sales and income taxes.

Through December, sales and use taxes were up just 0.5 percent over the previous fiscal year and individual income tax revenue was down 0.3 percent. Corporate income and franchise tax revenue was down 15.2 percent and inheritance tax revenue was down 40.8 percent. Those categories comprise a significant portion of the state's revenue.