Warren pares 2009 budget as tax receipts fall

WARREN — In 2005, when Delphi Corp. filed for bankruptcy, there was a great deal of speculation about the effect it would have on the local economy and on local governments.

Three years later, the effect on Warren has become more obvious, as city officials wrestle to create a 2009 budget they expect to be about $3 million below the city’s 2008 spending plan.

Mayor Michael O’Brien says the reduction in Delphi Packard payroll from 3,800 employees in 2005 to 750 is costing the city millions.

Delphi was Warren’s largest source of income tax revenue in 2005 “by a long shot,” providing about $1.3 million, O’Brien said. In 2008, that figure is down to about $135,000.

Read more in Tuesday’s Vindicator and Vindy.com