Does O'Malley's State Furlough Plan Constitutional Muster 8/09

Last year, the mandatory furloughs of state employees was the cornerstone of Governor Martin O'Malley's budget-balancing plan.  A federal court decision released yesterday raises questions about the legitimacy of government furlough programs.

In Fraternal Order of Police, et al. vs. Prince George's County, Maryland, the county government has been ordered to return to Prince George's County employees the pay that was withheld from last year's county furlough plan.  U.S. District Court Judge Alexander Williams found that the furloughs violated the employees' contract rights under the county's collective bargaining agreements.

In the opinion, Judge Williams questions why furlough plans are one of the first alternatives adopted by government leaders when other options are available, such as use of rainy day funds or deferral of one-time purchases such as land and equipment.  He also cites a prior case involving Baltimore City in which the federal circuit court ruled that even a salary adjustment of .95% is a substantial impairment to the employment contract.

Judge Williams concluded, "While adequate deference must be accorded to the fiscal decisions of government officials, the Court cannot merely give lip service to the fundamental principles that undergird the Contract Clause of the United States Constitution."  The decision's impact was reported in this morning's Washington Post (click here).

You can be sure that Governor O'Malley's attorneys are scouring the opinion by Judge Williams and the individual collective bargaining agreements with agency units to determine whether O'Malley's mandatory furloughs are on solid constitutional grounds.

Last year, O'Malley took $67 million from state employee salaries mid-way through the budget year to help solve his fiscal crisis caused by overspending and overestimated revenues.  It is expected that he will announce next week a new round of state employee furloughs due to the same problems with O'Malley's budget that began on July 1.

To view the federal case decision, click here.