Published: June 26, 2009 07:48 am      

Furloughs planned at Okla. Corporation Commission

OKLAHOMA CITY (AP) — The state agency that regulates utilities is moving ahead with plans to have most of its 470 employees take one day off without pay every month for a year as a way to ease budget problems.

Brooks Mitchell, chief administrator, outlined the cost-cutting plan Thursday during a meeting of the three-member Oklahoma Corporation Commission.

The furloughs would begin in July, the first month of the new fiscal year, and last for 11 additional months. The plan also includes a voluntary buyout for employees nearing retirement.

Mitchell can implement the plan without the approval of the commission.

“As far as I know we are moving ahead to implement the plan beginning July 1,” said Matt Skinner, commission spokesman.

Paul Sund, spokesman for Gov. Brad Henry, said the commission would be the first state agency to implement furloughs to contend with budget cuts, but others are considering them.

The commission regulates public utilities, the oil and gas industry and aspects of the transportation and telecommunication industries.

Officials said 73 percent of agency costs go to salaries and benefits, when at full employment.

Legislative figures showed the agency’s budget was cut by 5 percent, but Mitchell said the reduction was closer to 20 percent because lawmakers did not replace $1.9 million in funding lost because of law changes and other factors.

The agency also is facing a decline in revenue tied to the economic downturn of the oil and gas industry and other regulated entities.

The possibility of raising fees has been discussed, but Commissioner Dana Murphy said it “would be a challenge for me to do that on an industry that is already suffering.”

She and other commissioners urged Mitchell to continue to look for ways to reduce costs and watch for signs of improvement in economic conditions that could forestall some furloughs.

“They could get worse, too,” said Commission Chairman Bob Anthony.

Trish Frazier of the Oklahoma Public Employees Association said the state worker group would like to see furloughs delayed as long as possible, “but we do appreciate that you are in a world of hurt.”

Officials noted that the work of commission employees does not drop off during a poor economy and even can go up for inspectors trying to address environmental concerns.