Monday, September 3, 2012

East Chicago Employees Face Salary Cuts to Balance Budget

From the Northwest Indiana Times:


The possibility of pay cuts for city employees to prevent further layoffs loomed large in last week's discussions about next year's budget.
While the workforce has been pared by more than 7 percent this year through pink slips and retirement attrition, the current 2013 budget proposal still comes in nearly $3 million over expected revenue.
Casino money remains available to plug the gap as in years past, but City Council members at their weekly finance committee meeting Thursday agreed that a reduction in the reliance on shrinking gambling income needed to continue.
Gaming funds of $6 million were used to overcome this year's budget deficit, down from a peak of $13 million in 2010 and $8 million in 2011.
To balance the budget, Mayor Anthony Copeland this year combined layoffs, attrition and mandatory unpaid furlough days for remaining employees, as well as the merging of city building and code enforcement, and multi-media and information technology departments.
The city's Emergency Medical Services department also was privatized.
These cuts reduced by 15 percent last year's budget of $30.8 million, but the city would still come up short next year even in the unlikely collection of all property taxes owed.
...
Council finance committee workshops on the 2013 budget will continue each Thursday at noon in City Hall, 4525 Indianapolis Blvd.
The current budget timetable calls for a public hearing later this month and final City Council adoption in late October.