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Layoffs in Youngstown government next year are a possibility, the mayor says
YOUNGSTOWN
With the general fund facing a likely deficit next year, layoffs are a real possibility, Mayor John A. McNally said.
“Next year’s budget looks tough,” he said Monday after city council approved a $185.9 million overall budget for 2017 at a special meeting. “We need to pick it up on the revenue side. For our next budget, we need to look at staffing, the number of employees we have. You’re looking at potential layoffs for 2018.”
McNally added, “You have to hope the revenue picks up and we can avoid layoffs. We’ll see some attrition.”
The mayor didn’t declare a hiring freeze, but he said the administration would carefully scrutinize whether vacancies that occur this year need to be filled.
“All the hirings will be looked at,” McNally said.
Councilman T.J. Rodgers, D-2nd, chairman of the finance committee, said, “My goal is to avoid layoffs. To do that, we have to control spending this year, not replace people who leave this year. It’s not a good situation to be in, but we have to tighten our belts and hope the numbers will improve this year to help 2018.”
The general fund could face a shortfall of $2 million to $2.5 million next year, said Finance Director David Bozanich.
That includes collecting $42,010,000 in income taxes and business profit taxes this year – an increase from the $41,587,900 collected in 2016.
Last year was the first time in three years those tax revenues went up.
The city receives a 2.75 percent income tax from those who work and/or live in Youngstown, and that same percentage from profits made by businesses in Youngstown.
“I have a confidence level we’ll see growth in income tax [and business profit tax], but we don’t know if it will hit our projection,” Bozanich said. “We understand it’s a tough budget. We are going to have to be vigilant, and we’re going to have to watch the budget throughout the year.”
The city has about 30 more employees than it can afford, he said.
“I’m very comfortable with the staffing level we have now,” McNally said. “We need to get more money into the system.”
Councilwoman Anita Davis, D-6th, a retired police officer, wanted to reduce the police overtime budget by $250,000. It’s budgeted this year at $1,175,000.
Council rejected the proposal at the administration’s recommendation; however, McNally said the city administration will carefully watch all overtime.
“You can scrutinize all you want, but all of the overtime will be used,” Davis said. “If you put it there, it will be used.”