In hushed negotiations widely viewed as an affront to an incoming Republican administration, Gov. Parris N. Glendening is offering state employees $100 million in pay raises that leading lawmakers say are unaffordable during a time of budgetary distress.

Glendening is proposing 2 percent cost-of-living increases next year for state employees represented by some of the largest unions, state officials confirmed. The administration also wants to include in the 2003- 2004 budget an increase for workers moved to higher pay grades after extended service.

But Gov.-elect Robert L. Ehrlich Jr. and General Assembly leaders say the governor should not be negotiating costly deals - especially those that reward some of Glendening's most ardent supporters - when the state faces a $1.8 billion shortfall over two years.

The proposal, Ehrlich said, "came out of nowhere. ... The numbers are so daunting. My first instruction is to [balance the budget] in a way that means no misery, which is no layoffs of warm bodies. This would complicate that goal."

Meanwhile, lawmakers such as Del. Howard P. Rawlings, a Baltimore Democrat and chairman of the House Appropriations Committee, spoke against the plan. "When you have the kind of budget deficit we have, we have to be a little more fiscally prudent," he said. "I can't support this type of action on his part. I just think it's ill-advised."

Any agreement between Glendening and employee unions would serve more as a political statement than a policy decision, observers said. A pact would not bind Ehrlich, who can make changes to Glendening's budget proposal, but it would increase the heat on the incoming governor if he overturns it.

"An outgoing governor puts in a budget, and the next governor puts it in the trash can," said Del. Michael E. Busch, an Anne Arundel County Democrat and speaker-designate of the House. "It puts a little more pressure on Gov. Ehrlich to face down the unions. I just hope people realize that this is more political gamesmanship than a practical application of governing."

As Glendening prepares a framework for the fiscal year that begins July 1, state officials have been negotiating with two unions that represent about 36,000 state employees. But Ehrlich, who will be sworn in a week after the General Assembly convenes next month, can modify or replace the proposal.

Others say they are angry that Glendening appears to be boxing Ehrlich into corner, forcing him to renege on a state commitment and raising the ire of a work force that hasn't received a pay raise in two years.

"It's the dirtiest trick I've every known any governor to pull on another," said Comptroller William Donald Schaefer, a vocal critic of Glendening. "I can't tell you how outraged I am. Ehrlich will be the bad guy, or the legislature. But it won't be Glendening. He'll just sneak out."

Democratic state Sen. Barbara A. Hoffman of Baltimore, departing chairwoman of the Budget and Taxation Committee, called Glendening's offer "absurd."

"It's politics," she said. "You have an outgoing Democratic governor who is friends with labor, and he is sticking it to the new Republican governor."

Ehrlich, the first Republican elected governor in 36 years, ran on a platform of fiscal responsibility and business-friendly ideas, pledging to bring "efficiency" to state government. He also promised during the campaign that state workers would not bear the brunt of tough budget decisions.

Glendening's proposal for raises could require layoffs, Ehrlich said last night.

Still, Ehrlich said he did not want to attribute motives to the bold moves made by the governor in the administration's closing weeks. "I would try to give him the benefit of the doubt," Ehrlich said.

The largest state union, the American Federation of State, County and Municipal Employees, endorsed Democrat Kathleen Kennedy Townsend in the race for governor, although many state workers supported Ehrlich. About 35,000 of the union's members in Maryland work in state government.

Citing confidentiality, Glendening spokesman Chuck Porcari would not confirm details of negotiations with AFSCME and the union representing state troopers, which were first reported by The Washington Post yesterday. But he said the governor, who was not available for comment yesterday, generally believes workers deserve better pay.

"The governor feels very strongly that Maryland state employees are doing exceptional work under difficult circumstances," Porcari said. "They have not had a cost-of-living raise in over two years, their health insurance costs have risen dramatically, and due to persistent hiring freezes, many state employees are doing the work of two or three people on a daily basis."

State workers received a 4 percent pay raise in November 2000. Last year, Glendening proposed a 2 percent raise, but the money was cut in a budget-balancing move.

Demoralized employees are leaving state jobs in growing numbers as their workloads rise and conditions deteriorate, said Sue Esty, a lobbyist for AFSCME. A pay increase would help halt the trend, she said.

"Imagine being a parole and probation employee or a social worker with a caseload that is impossible to maintain," she said. "You can't sleep at night. The stress levels are enormous."

The proposal is the latest contentious decision by Glendening as he seeks to solidify his legacy during his final month in office. Last week, The Sun reported that Glendening wanted to spend $22 million to preserve forest land and easements on the Eastern Shore and in Southern Maryland, a deal legislators also called unaffordable.

Leading lawmakers said yesterday that Maryland would be fortunate to emerge from the fiscal crisis without laying off employees. Raises, they said, are extraordinarily unlikely.

"I think this is very disingenuous," said state Sen. Robert R. Neall, an Anne Arundel Democrat. "For an outgoing governor to grant significant changes in the pay scale for state employees is regrettable. From what I have been able to see, the state will be doing very, very well by its employees if it doesn't have to lay a lot of them off."

State Sen. Thomas M. Middleton, a Charles County Democrat and incoming chairman of the Finance Committee, said he expects Ehrlich to change any agreement between Glendening and the unions.

Glendening "has been very strong with the labor groups, and I think this is a good parting statement to labor as he leaves state government," he said. "But I don't know sensibly if it is the best thing to do."

But Hoffman pointed out that the Assembly set the timing of the negotiations. A year ago, Glendening submitted a budget while labor talks were continuing, then asked for pay raises as lawmakers were cutting the spending plan. The legislature responded by requiring negotiations to be finished before a state budget is submitted.

Former Maryland governors reached yesterday were baffled by Glendening's actions.

"At this time [in an administration], you are usually packing up and making arrangements to leave, and doing whatever you can to cooperate with the transition," said Harry R. Hughes, governor from 1979 to 1987. "It is pretty late in game."

Added Schaefer, a two-term governor who preceded Glendening: "I left him with a surplus. Every governor who cares leaves a surplus. All he should have said is 'I won't negotiate this year; leave it to the next governor.'"

David Hammel, president of the Maryland Troopers Association, is skeptical that state employees will receive the raises. Even if Glendening's budget plan contains more money, Ehrlich or the General Assembly likely will cut it, he said.

"It is unfortunate that state employees are the ones that get the budget balanced on their backs," Hammel said. "Historically, that's the way it is. There's not a lot of fat in the budget."

The labor negotiations appear to undermine a pledge Glendening made to Ehrlich a month ago. During a meeting for new governors in Austin, Texas, they met and discussed how to balance the 2002-2003 budget. Ehrlich called Glendening's ideas "solid," and said the governor clearly wanted to leave office with a "clean slate."

The numbers

How much would a $100 million pay raise for state employees cost the average Maryland taxpayer?

Here are a few comparisons:

Last spring, the Assembly refused to delay the 2 percent income tax cut scheduled for all families. That delay would have generated almost $180 million in state revenues.

By ensuring the cut occurred, the Assembly saved the average family of four about $75. An income tax increase for the proposed pay raise may cost the average family about $40 to $45 a year.

A state task force looking at budget woes has proposed increasing the top income tax rate from 4.75 percent to 6 percent on incomes of more than $100,000. That would generate about $200 million.

Repealing the state income tax deduction for charitable contributions would provide about $135 million. Repealing the deduction for home mortgage interest would generate about $355 million.

- Sun staff