Budget picture gets gloomier (layoffs at my employer on the way)

Earlier this year we had negotiated a 2.75% increase for 2009, 2010,2011. We would be paying more into our pension, insurance, etc. It was basically a wash. The city has withdrawn the offer effective just before the (third) finale reading with the city council would have passed the contract. We were then asked to freeze wages for the three years while still paying the higher amounts. Another union (functional group) had already gotten their contract approved. They have now been told to void the contract and take the terms offered by the city. If they don't, the city will layoff the number of employees from their group it takes to cover the increased cost to the city.

Tuesday night our local will present the latest offer from the city to our membership. I'm in a secure position by seniority and job title. But I know some newer employees with families that could be laid off.


Budget picture gets gloomier

http://www.omaha.com/article/20090801/NEWS01/708019921

Published Saturday August 1, 2009

By Paul Goodsell and Tom Shaw
WORLD-HERALD STAFF WRITERS

The City of Omaha's financial problems just got worse.

Mayor Jim Suttle said Friday that Omaha faces an additional $7 million gap in its general fund budget this year. The new problems raise the total 2009 unresolved shortfall to $12 million.

The shortfall has grown mainly because of weak interest earnings, higher-than-expected health care payments for retirees and lower tax collections on gas and water usage, officials said.

“These latest numbers reinforce the depth of the financial crisis and point out the urgency in obtaining wage freezes from the city unions for both 2009 and 2010,” Suttle said.
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Omaha has been struggling with its budget because of the weak economy, with revenues falling short of projections. Both Suttle and former Mayor Mike Fahey have scrambled to balance this year's budget, and Suttle also has proposed tax hikes and budget cuts for 2010.

So far this year, Omaha officials have cut $9 million from the budget passed last summer. Until now, they thought the goal was $14 million in cuts. Suttle had hoped to close the $5 million gap by negotiating wage freezes equaling that amount with city employee unions.

Now, even if the unions agree to those concessions, the city still faces a massive hole in its current budget.

“Ouch,” said City Council President Garry Gernandt. “It's the type of news we don't want to hear, now or ever.”

Suttle and his new finance director, Pam Spaccarotella, did not outline what additional cuts they will propose. Suttle pointed out that his proposed 2 percent entertainment tax, if implemented, would take effect Oct. 1 of this year. While the tax is mainly aimed at solving next year's budget problems, Suttle said it also would generate $2 million this year that could be applied to the current shortfall.

FULL story at link.