Thousands of unionized state workers can breathe a little easier because Gov. Ed Rendell has decided not to use "rolling furloughs" as a way to ease the state's budget deficit.

At least not for the next 15 months.

For the last several weeks he has been negotiating with three state employee unions about whether to require their workers to take unpaid leaves or furloughs -- two days per month, up to a total of 29 days -- to help the state save $90 million on labor costs. It was part of his plan to deal with a projected $2.3 billion deficit by the end of June.

But Mr. Rendell yesterday unveiled a tentative agreement with union leaders on another option for saving more than twice as much money by temporarily reducing the state's contributions to an employee health benefit fund.

Mr. Rendell said the state would save $200 million over the next 15 months by reducing the contributions, which he said won't affect employees' health care benefits. He said the fund now has $248 million in reserves and will remain "fiscally sound" even with the proposed 20 percent reduction in state contributions.