City officials mulling worker furloughs
By Jeff Gallatin
North Olmsted
Published May 27, 2009

Early projections of a deficit of close to $2 million for next year’s municipal budget has city officials considering different options – including employee furloughs – to help close the financial gap.

Mayor Thomas O’Grady said the concerns stem from anticipated shortfalls in property and retail tax areas as well as the continued uncertain status of the state local government fund.

“As we anticipated in the administration, there have been potential problems which have developed as we work on the budget process,” he said. “As a result of that, we are looking at different items on the shelf, such as having employees take unpaid furloughs.”

O’Grady said he has not had the chance to formally discuss the matter with employee groups, so he could not discuss specific times which would be considered for employee furloughs and how much time off.

“We have negotiations going on right now with all our employee organizations, so I can’t really get into possible specifics at this point,” he said. “We’re again having to look to our employees as part of the process.”

O’Grady said the administration noted months ago that there could be additional problems to add to the already terrible economic picture which led to the city trimming its budget – including laying off 15 employees at the beginning of the year.

“We said there could be bumps in the road and there are indeed bumps in the road,” he said. “The property tax situation is not good and the retail sector is having a terrible time. The economic picture we’re looking at is unprecendented for our times and most of the people right now.”

He said the State Local Government Fund, which provides more than $1 million to the city budget could pose additional problems.

“The state is having problems of its own with the budget, so we very likely could see some changes in our funding from that as well,” he said.

O’Grady said the administration has plans which it is continuing to review for possible solutions.

“We had proposed some possible solutions which weren’t accepted but we have taken other measure in this administration,” he said. Since we started we’ve reduced the employee work force by 20 percent and cut other costs as well.”

He wouldn’t cite additional layoffs as part of any specific plan right now, but noted actions like that in the current economic climate are always in any possible options.

“We’ve already cut to the bone so our options are getting limited,” he said.

He said the administration would continue to work on possible plans.

  Finance Director Carrie Copfer said the administration is continuing to work and monitor the situation.

“The next few months are critical,” she said.  “We’re watching everything closely right now and will continue to do so.”

Copfer said she will continue to present financial information as quickly as she can.

City Council officials said they are aware of the economic situation and will do what they can.

“When you look in the papers and see all the economic issues and problems you have to realize that employee furloughs and cuts are options you have to look at,” said Ward 2 Councilman Paul Barker. “There’s only so much you can do and I know that we have already been cutting, so we’ll have to look at options like this.”

City Council President Kevin Kennedy said everybody in the city has to work together on the problems.

“We’re going to have to look within to deal with the issues,” he said.

Michael Gareau Jr., chairman of city council’s finance committee, said he wants to make sure council is kept abreast of pertinent information.

“I’m hearing about the furloughs first from you,” said Gareau. “We have not been briefed on this.”

Gareau said he does not want to hear more specifics late in the process, he wants additional information and options.

“I don’t want to be looking at some of these things in November,” he said. “We need to know about issues quickly.”

O’Grady said the administration will be presenting options.

“We have to discuss it with others as well,” he said.  

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