Most Cities Look To Layoffs To Make Ends Meet
The Pew Charitable Trusts says most cities, including Boston, are cutting services and salaries rather than raising taxes as they attempt to balance their budgets.
The trusts' report, "Tough Decisions and Limited Options: How Philadelphia and Other Cities are Balancing Budgets in a Time of Recession," examined budget decisions being made in 13 major cities across the country.
Only four of the cities in the study, including New York, Philadelphia, Atlanta and Columbus, are considering tax hikes to fill serious budget gaps.
In Boston and Los Angeles, that's nearly impossible; state laws, and other legal restrictions keep those cities from making major tax increases.
Boston, Los Angeles and Chicago have all demanded substantial wage and benefit concessions from city employees and have threatened major layoffs if those concessions are not made. Atlanta cut the hours and pay of most city employees by 10 percent.
Detroit's budget for the coming year would require laying off 334 employees from a municipal workforce that has shrunk by more than 33 percent in the last 10 years.
Of the 13 cities in the study, only Pittsburgh has a budget surplus (1 percent) for the current fiscal year.
WBJ Web Partners
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