YOUNGSTOWN Deficit isn't as bad as they say, but city still wants to rein it in
The projected 2002 deficit remains about $2.5 million.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- The city's deficit isn't good, but it's not as bad as this week's talk, said Finance Director Barbara Burtner.
Word has circulated the past few days that the city's deficit had ballooned to between $6 million and $8 million.
Burtner said, however, that those figures are the worst-case numbers between now and 2003 or 2004.
The projected deficit for 2002 remains about $2.5 million, she said.
Concern for future
Nonetheless, the larger numbers popped up because the city must think about the future as it handles the present, Burtner said.
"We don't want to assume everything can be taken care of this year and that next year will be dramatically better," she said.
Wages, insurance and workers' compensation costs will keep rising in 2003, she said. There's no telling whether tax revenues will keep pace. The city needs to keep all that in mind when deciding how to handle cuts, Burtner said.
The city is offering workers a $10,000 incentive to leave by month's end to offset layoffs. A $2.5 million deficit equals about 60 layoffs.
Some have accepted
So far, about 30 workers have taken the deal. At least a few others are expected to follow.
The city will know how much it will save after the July 19 payday, Burtner said. That is the first payroll without those departed workers on it. Layoff decisions probably will be made by the end of July, she said.
The future must be kept in mind when deciding how many layoffs, she said.
"We have to start getting our work force reduced so all the [future] raises and increasing costs don't have such an impact," Burtner said.
rgsmith@vindy.com