Youngstown finds out deeper personnel cuts are needed

Youngstown finds out deeper personnel cuts are needed

YOUNGSTOWN —With the city’s finances in worse shape than it was just a week ago, deeper cuts are needed.

That could mean the projection of as many as 60 city workers losing their jobs by July 1 could increase.

“There’s always the possibility of further layoffs,” said city Finance Director David Bozanich.

It all depends upon the economy, which is on the downswing, he said.

A re-examination of the city’s 2.75-percent income tax collection projections for the rest of this year shows it will probably be about $1 million less than last week’s estimate of $44 million.

Also, Bozanich said he’s unsure if some one-shot property sales of about $2 million that were to occur this year will materialize. The problem is the soft economy makes this a bad time for companies interested in purchasing city property, Bozanich said.

With those problems, the proposed 2008 general fund budget, which was expected just a week ago to finish this year with a $2,997 surplus is now projected to have a $3,035,704 deficit by the end of this year.

For the complete story, see Wednesday’s Vindicator and Vindy.com