Youngstown income tax collections running below what was expected

YOUNGSTOWN — As city officials work to reduce, and possibly eliminate, layoffs, they face more bad financial news.

The city’s income tax collection for the first four months of 2009 is about $275,000 less than city officials had projected, and the shortfall could rise to as much as $1 million by year’s end, said Finance Director David Bozanich at a city council finance committee meeting today.

The city had expected about $16 million in income tax collections as of April, and $44.2 million for the year, he said.

“It’s nothing alarming, but I’m being cautious,” Bozanich said after the meeting about the potential $1 million shortfall.

The news of a potential $1 million shortfall comes as the board of control is to approve an early retirement buyout Tuesday for members of its ranking police officers union, which represents sergeants, lieutenants and captains.

City officials should know in about two weeks how many of the supervisors will take the buyout, and most of those accepting the deal will be off the city payroll in about two months, Bozanich said.

The Youngstown Police Association union, representing about 115 patrol officers, will vote on taking a buyout Thursday.

But the city administration also wants the patrol officers’ union to agree to a lower entry-level salary for new hires. Without a decrease in starting pay and enough officers taking the proposal, the city is going to be hard-pressed to hire new cops, Bozanich and Mayor Jay Williams said.

For the complete story, read Tuesday’s Vindicator or Vindy.com