GM's shift cut will cost Lordstown, mayor says

Lordstown could lose up to $500,000 of its $3 million budget, the mayor said.
By TIM YOVICH
VINDICATOR TRUMBULL STAFF
LORDSTOWN -- The village could lose about 20 percent of its general fund budget when the General Motors Corp. plant ends its overnight shift, the mayor says.
The giant automaker announced Wednesday it will shut down the shift this summer. About 1,500 are employed on 11 p.m. to 7 a.m. shift at the assembly and fabrication plants.
"It's pretty depressing news," Mayor Michael A. Chaffee said Wednesday afternoon.
The total number of job losses isn't known because some workers will be transferred to other shifts where there are openings, some will retire and others will accept buyouts.
"It must have been something that was floating around," Chaffee said, noting he had heard a rumor about GM's decision earlier this week from a retiree.
The mayor explained it was too early to determine the entire impact on village because it isn't known how many eligible GM employees will be affected.
Tied together
Nonetheless, Chaffee noted that about 75 percent of the village's general fund budget is GM-related based on its 0.5 percent income tax.
He estimates that the village could lose up to $500,000 of the $3 million budget if 1,500 jobs are eventually lost.
"It's kind of early to tell," the mayor said of the village's economic future.
Chaffee said that he talked with a GM official Wednesday, but he couldn't find out what the employment numbers will be.
"Obviously it raises some concerns," Chaffee said.
One of the misconceptions, the mayor said, is that the village is "bathing in money" because of the automaker being in its back yard. That's simply not true.
"Where do we go?" is a question city council will be asking, the mayor said.
For example, the village has made a significant effort to attract business in order to bolster its tax base. If the budget is cut by reducing road maintenance, the village may lose its competitiveness with other communities in attracting business.
The village can't allow its roads to deteriorate when transportation is paramount to business activity, Chaffee said.
"I don't believe there are a whole lot of places we can cut back on," Chaffee said of the already tight budget.
Chaffee, a teacher outside the local district, said the Lordstown schools could lose money through property tax, but that would depend on the village's ability to attract developers of residential neighborhoods and the number of retirees that decide to continue to live in the community.
yovich@vindy.com