Thursday, October 18, 2012

Elkhart Weighs Furloughs Versus Layoffs to Balance Budget

From the Elkhart Truth:

Furloughs versus layoffs.

In what has become a protracted battle over Elkhart’s city finances, two different philosophical approaches have surfaced in the final battle of the budget for 2013.

Mayor Dick Moore crafted $1.9 million in cuts that included only one layoff while eliminating six other jobs that have been vacant. In addition to assorted cuts in overtime, seasonal workers and funding reductions to several agencies, his plan relies heavily on furloughs for all city workers and would save roughly $391,000.

Moore said he views the furlough strategy as a temporary solution until city finances stabilize.

But a Republican-led coalition considers declining property tax revenues to be a long-term problem and rallied behind a plan to negate the furloughs. Instead, their plan eliminates eight city positions, including two that are unfilled.

Monday’s last-ditch maneuver cut the budget by $429,000 and was somewhat unexpected by Democrats, who claim the cuts are unnecessary.

Republicans, however, said it shows a commitment to reducing costs. More than one suggested Monday’s action represents a “first step.”
...
On Monday, the council passed a budget $2.3 million smaller than the current budget and cuts 15 positions.

Moore said he is contemplating whether to end the debate by vetoing the Republican’s amendment. The council could try to override the veto, but Republicans would need the support of more Democrats to do so.

See the full article here: