Deficits, Lay offs and Recessions

Beginning in June of this year, the global economic crisis hit home in
the City of Cincinnati. The Administration informed City Council that
due to lower than expected tax revenue, we were faced with a 2009
deficit of $20 million. Recognizing the devastating effect such a
deficit could have on the citizens of Cincinnati, Councilmembers Cole,
Qualls, Thomas, Harris, and Vice-Mayor Crowley, presented a plan that
made substantive cuts while protecting critical City services. Had we
not passed this plan, 902 City Employees would have received layoff
notices, including 302 police officers and 230 firefighters.

It is important to note that no one wanted to layoff any City
employee, especially in the area of Public Safety. But it is also
important to note that since 2000, Cincinnati Police and Fire staff
levels have risen approximately 6%, while General Fund staffing levels
for all other departments have been cut by 29.9%. Over the same time
period, public safety department budgets rose 37.1% (33.8% for Police
and 43.3% for Fire), while non-safety General Fund department budgets
fell 10% overall. Public Services fell 18.9%; Economic Development
-25.1%; Finance -29.9%; and Community Development -6.7%.

On July 17, when faced with a deficit that grew to $28 million, the
City Manager announced layoffs would be necessary in 2009. He did,
however, emphasize that layoffs could be avoided this year if the
unions agreed to cost-savings days and to forgo cost of living
increases for 2009 that were awarded by an arbitrator. To close the
gap, General Fund departments made reductions in their budgets ranging
from 2.7% to 11.2%, with eleven departments –taking cuts of 5% or
more.

Mayor Mallory, supported by Councilmembers Cole, Crowley, Harris,
Thomas, and Qualls undertook negotiations with the city’s labor unions
and the Administration to find substantive cuts and reasonable
concessions from the unions.

These negotiations were successful and were reflected in the plan passed by a majority of City Council on September 4.

While we are all grateful for solving this recent crisis, we know that next year will be worse. Cincinnati does not exist in a bubble. This is a global recession, not a local one. Other cities are facing very similar budget problems.

• Philadelphia - Laid off 3,000 workers, reducing garbage collection
to once every other week.
• Atlanta - Four rounds of layoffs, increase in property taxes, and
mandatory furloughs for all city workers (including police, fire, and
others).
• Miami - Deep pay cuts (ranging from 6% to 15%) and pension benefit
reductions or the elimination of 191 sworn police officers, 305
general union employees, 5 firefighters, and 110 nonunion workers.

The plan that the council majority passed on September 4th is responsible, possible, and
reflective of the times. We did not demand layoffs and we did not make
the quality of life unbearable for our citizens. We asked the unions to meet us halfway. And we are glad the CODE and the FOP agreed. It is unfortunate that AFSCME did not do so.