Gov. Charles Turnbull is no longer considering the cutback from an 80-hour pay period to 75 hours that he proposed in his Fiscal Year 2000 budget.
The cutback would have saved the government $20 million this year.
Government House said late Monday night that Turnbull and Lt. Gov. Gerard "Luz" James had withdrawn the proposal during a radio interview Saturday.
Earlier in the week Turnbull had hinted to members of the St. Thomas-St.John Teachers Union that his financial advisers had developed an alternative plan, according to the Government House statement.
"Other approaches are under consideration to eliminate the budget shortfalls," Turnbull stated. "Where there is a need for legislation, such will be forwarded before the completion of the present budget cycle."