Budget Woes Force ADOT To Plan Layoffs And MVD Office Closures

By Tammy Gray-Searles
   At least two of the 90 Arizona Department of Transportation (ADOT) employees notified that they would be laid off last week are stationed within Navajo County.
   ADOT public information officer Laura Douglas explained, however, that the number could be higher since the list available to her contained only a total of 71 layoffs.
   “This is a list for customer service representatives,” she noted.
   According to Douglas, those laid off at this point include only employees who were in temporary or limited positions. No regular full-time employees have been laid off at this point.
   “They were all positions that were set to expire at some point in the future,” she said.
   The 90 who received notifications have been given two weeks notice, Douglas explained.
   “It will take place over the next two weeks,” she said. “They will have two weeks before their formal departure.”
   Douglas noted that 25 additional employees will be laid off in the coming weeks, for a total cut of 115 individuals.
   As for closures of Motor Vehicle Department (MVD) customer service offices, Douglas explained that a list of the 12 offices slated for closure is not yet available.
   “They are pending federal reviews,” she noted.
   Because of voter registration rules, the Department of Justice must review the customer service office closures, according to Douglas. Upon completion of the review, the list of closures will be announced.
   According to ADOT, both the layoffs and the pending office closures are the result of the state budget deficit.
   “Because of the ongoing and deepening State of Arizona fiscal deficit, the Arizona Department of Transportation is forced to implement a series of layoffs as part of its roadmap to reduce expenses and balance a budget ravaged by declining transportation revenue and legislative transfers,” ADOT announced last week.
   A combination of declining revenues and a $500 million sweep of transportation funds by legislators created what ADOT Director John Halikowski has dubbed a “perfect storm.” He noted that the reduction in funds from the legislature compounded a problem created by a reduction in revenues from fuel taxes and vehicle sales due to the faltering economy.
   “The reality of our budget leaves few options,” Halikowski said regarding the layoffs and closures. “This is a perfect storm. Our revenues are down, we are suffering from the use of state transportation funds for other purposes, and the needs of the state are not decreasing. As I have often said, ADOT stands ready to do its part to help balance the state budget, but the key word is ‘balance.’ Continued reliance on transportation funds to balance the budget will only harm the future of Arizona’s infrastructure system, which is a vital component in resuscitating and growing our state’s economy.”
   Halikowski also noted that the layoffs are not related to the 15 percent reduction plan requested by Governor Jan Brewer, and if the 15 percent cuts become a reality, there could be drastic staffing cuts. He also warned that continued cuts to transportation could result in other economic problems for the state.
   “Because of the correlation between a strong transportation network to economic growth and improved quality of life, the diversion of dedicated transportation funding has implications broader than potholes, snowplowing or rest areas,” the ADOT announcement noted.