Loss of jobs spurs more cuts in Warren

STAFF REPORT

WARREN — With job losses piling up at area companies since city council passed its 2009 budget in early December, the city will have to cut expenses about $1.5 million more in the next couple months, auditor David Griffing told council’s finance committee Tuesday.

Job losses, which affect the city’s income tax collections, have been announced at Severstal Warren, the former WCI Steel; GM Lordstown; Delphi Packard; and other businesses.

Council president Bob Marchese said as much as $1 million of the $1.5 million will likely have to come from additional layoffs.

Marchese said he doesn’t know how many more city workers are likely to be furloughed.

The city shed 20 police officers, nine firefighters and eight other city workers, effective Jan. 1, when officials cut $1.2 million from the payroll.

Meetings with department heads in recent weeks have resulted in up to $550,000 in nonemployee cuts, Griffing said.

“Please realize we continue to receive discouraging news almost every day, and the revenue may have to be adjusted again later in the year,” Griffing wrote in a handout to the finance committee.

Marchese said it will be Mayor Michael O’Brien’s job to decide on layoffs, but all city officials need to begin serious discussions about eliminating departments whose work can be absorbed by county government or handled by private companies.

Marchese said the city’s building department responsibilities could possibly be handled by the county building inspection department, while community development could be handled by the Regional Chamber, and the work of the income tax department could be handled by a private company.

Marchese said dialogue with county commissioners about working more closely with the county should begin right away.

In late January, GM Lordstown announced it was laying off 800 workers by eliminating its second shift, effective April 6, and Severstal revealed in mid-December that half or more of its 1,200 hourly and salaried workers would be laid off indefinitely.

Severstal workers said they were told the layoffs might last until June.

Delphi Packard also announced in mid-December that it was laying off an additional 99 workers.