Warren faces loss of revenue from area businesses

WARREN — Layoffs at the Severstal Warren steel mill and at the General Motors plants in Lordstown could reduce Warren’s water revenue by $300,000 or more in 2009.

The layoffs also will reduce the city’s income tax revenue in early 2009.

But for now, the city isn’t planning to make additional budget cuts or layoffs, said Michael O’Brien, Warren’s mayor.

There are reserve balances in the water and wastewater accounts, O’Brien said, so the loss of water and wastewater revenue from Severstal and loss of water revenue from General Motors will be absorbed for now.

“If the trend continues, we would need to look at reducing expenses, which would be personnel,” he said.

Severstal employees say about 500 to 600 of them will be on layoff through May or June, depending on the market for their products.

General Motors announced at about the same time that it would eliminate about 900 jobs as a result of eliminating the third shift at the assembly plant.

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