Even after laying off staffers, the state agency that regulates the insurance industry and investigates fires was $170,000 in the hole with two months left in fiscal 2017, which is why it is having to furlough employees.
The Atlanta Journal-Constitution reported last week that the agency's budget was such a mess that it had to shed 10 employees and give its remaining about 200 employees four days off without pay before June 30.
Insurance Commissioner Ralph Hudgens told the AJC the budget problems were due to his agency handing out raises without having the money to do so. His chief financial officer was demoted and transferred to another state agency.
Gov. Nathan Deal's office wasn't told about the shortfall until about two weeks ago. Most of those who lost their jobs were mid- and lower-paid employees.
Some state lawmakers are unhappy that the shortfall wasn’t mentioned during the 2017 General Assembly session, which ended in late March. The General Assembly approved an increase in spending for Hudgens’ agency for fiscal 2018, which begins July 1.
A furlough plan showed the agency had to make up $170,000 with the furloughs. Four days of furloughs, it said, would leave the agency with a slight surplus at the end of the year. Five days, the plan said, would leave the agency $71,000 in the black.
Furloughs were frequently used by state agencies and school districts during and after the Great Recession to balance budgets. However, no state agency has resorted to them in recent years.
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