Several employees familiar with the downsizing told the Times Union that the counsel's office in the Department of Taxation and Finance took an especially deep cut. It has 42 PEF members -- all of whom are attorneys -- and 37 were issued pink slips. The employees said this would leave the five lawyers and "a handful" of exempt employees to do legal work at the department. An administration official countered that around 20 would remain in place, and that the office is currently "bloated."

The attorneys perform several tasks. They help draft legislation and changes to the tax code as needed during the state budget process, and issue advisory opinions for taxpayers about how the law should be applied. They also handle cases of taxpayer grievances, litigating on behalf of the state.
More than $500 million worth of cases are outstanding, Wells and the other employees said. According to the Division of Tax Appeals' 2009-10 annual report, $130 million worth of disputes were decided, with the state winning roughly half of them. "That's money out there where they're supposed to be fighting to bring it to the state," Wells said. "Having far fewer people to do that is going to mean less coming in, and our understanding is there's not a plan in place to replace the work."

Paul Comeau, chairman of Hodgson Russ, a large law firm that dedicates about a quarter of its attorneys to tax work, said he was "surprised" by the decision to drop the layoff hammer on the tax lawyers. He's concerned fewer staff will mean delays for his clients, whether they're seeking advice or settling payment disputes. "It would be devastating, I would think, because the handful of people who are left aren't going to be able to handle all the cases they have," he said. "This is a very sophisticated, focused group within the Tax Department, and what they do requires deep knowledge of the tax law and years of experience. Trust is built up over time with the practitioners."

Department of Tax and Finance Commissioner Thomas Mattox declined a request for an interview, and declined through spokesmen to offer specifics about how many cases a year the attorneys handle. He also declined to say why so many lawyers were targeted. Overall, the agency was asked to shed 301 employees.