Could the Shutdown Lead to Layoffs in NH?

On Tuesday, Gov. Maggie Hassan and the State Employees' Association announced that they had reached an agreement to prevent layoffs of state employees whose salaries are funded in part or entirely by federal programs.

But could layoffs become necessary if the shutdown continues? That depends on how long it lasts.

The agreement reached Tuesday defines the impact of the federal government shutdown and the lack of timely and sufficient funds to support employees as an “emergency” situation and allows for furloughs in lieu of layoffs as federal funds run out in different program areas. Where possible, state agencies have been using carry-forward funds to stretch available federal dollars, but federal appropriations for some programs may begin to run out by the end of the month.

"Every day that the senseless federal government shutdown continues, the impact gets worse for New Hampshire’s families and economy," Hassan said. "By the end of this month, federal funding for some programs will begin to run out, putting the health and safety of our citizens at risk, and jeopardizing jobs and our economic recovery."

But she added that the situation here could get "even worse" if Washington doesn't work to reopen the federal government soon.

The agreement reached Tuesday ensures that employees will lose no additional rights or benefits, such as seniority, as a result of the unpaid furlough. The agreement stipulates that if the federal government later authorizes funding for back-pay for furloughed workers, the state and the SEA will assist furloughed employees with reimbursements that may be required for unemployment compensation received. The agreement is in effect until Dec. 31, 2013, unless otherwise mutually agreed to.