City of Warren faces additional budget deficit

Photo

Warren Mayor Michael J. O'Brien

WARREN — The message shared with city employees in recent days was that additional job losses in the private sector and rising insurance costs have produced another $1.6 million deficit.

Now, city officials will meet with workers a second time to discuss and negotiate what to do about it.

“Everything’s on the table,” Mayor Michael O’Brien said of the additional cuts that will be needed in the coming weeks to reduce spending for the third time since December.

Among those options are reductions in pay and benefits and additional layoffs, he said.

Auditor David Griffing showed the city council’s Finance Committee the same overhead presentation today that he gave workers, showing not only the reasons for the most recent deficit, but also the adjustments that were made in December and February, and a projection for another $2.8 million shortfall in 2010.

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