$3.3M deficit looms for city

By David Skolnick | March 3, 2009 at 12:09a.m.

Youngstown finance director David Bozanich

Youngstown faces as many as 60 layoffs

YOUNGSTOWN — A combination of increased costs and decreased revenues leaves the city’s general fund with a $3.39 million deficit for this year.

Under a worst-case scenario, the city would have to lay off 60 employees to make up that projected shortfall, said Finance Director David Bozanich. The city employs about 850.

Even a best-case scenario, which would include funding from the federal economic stimulus package, a better-than-expected economy and additional cuts to items such as travel and gas use might not be enough to stop some layoffs, Bozanich said. The number, however, would be significantly fewer than 60, he added.

The amount of money the city will receive from the federal stimulus package should be known late this week, Bozanich said.

“We’re doing all we can to avoid layoffs,” he said.

Bozanich added he didn’t “know if it will be possible to accomplish that [avoiding layoffs] in 2009. We pretty much trimmed what we could trim.”

On the revenue side, the city administration expects income tax collections to be $44.2 million this year compared to $47.9 million in 2008, a reduction of $3.7 million.

There are 14 vacant jobs in the city that if left unfilled would save $874,230, Bozanich said.

Bozanich told city council Monday that department heads will say those hirings are absolutely necessary.

Law enforcement is the largest department in budgeted expenses.

Council heard from police Chief Jimmy Hughes about his budget, which is about $250,000 more in 2009 compared to 2008.

When asked if cuts could be made, Hughes said it was highly unlikely. The chief added that he actually needs about 15 more employees in the department — which has about 200 workers — and didn’t ask for them in his budget.

The city, by law, must pass its 2009 budget by March 31.

Council began having budget hearings Monday and plans to finish the meetings March 26.

At the start of 2008, Bozanich said he expected a deficit of more than $3 million by the end of that year, and about $6 million by Dec. 31, 2009, if cuts weren’t made and revenues not increased.

But the city made up the money through a firefighter buyout program, the sale and lease of some assets, keeping some jobs vacant, and filling others with employees at lower salaries than their predecessors.

The 2009 budget, with the projected $3.39 million deficit, already includes the savings from the firefighter program and the potential sale of a few assets, Bozanich said.

skolnick@vindy.com