New update from the Manager: FY10 budget

We've got a supplemental agenda tonight, which is a report from the Manager on the latest on money.

To come up with $30.8 million for FY10, we'd need to layoff 1 in 3 on the city side.
85% of budget is personnel costs

Recommendations from Manager:

1. extend pension schedule by ten years (would require home rule legislation) (would save $4.5 million)
   
2. $2.5 million of snow removal...use one time school refunding (for construction we've already done) to pay for snow removal. This means it DOESN'T go to North, for example.
3. health care trust fund (it comes through for us again! Stay healthy, people!) is also one time money $1.5 million to bond. Some of this goes to schools, some to city, and that means the employees get a health care payment holiday (like last year)
4. 50 open positions stay open next year: $1.5 million
5. case-by-case basis: $.5 million

reduced from $30.8 million to $20.3 million as of NOW

Intends to develop the FY10 budget on a $20.3 million deficit

What happens next:

"My intention to layoff 400 employees." He's going to start talking to the unions this week (not the EAW) about the layoffs, 'though he has already met with them earlier this week. He wants the cuts done by April 30.
He continues to say that all of this is pending the state and federal money. He repeats that we can't depend on those monies; we have to go with what we do know for certain.

Further suggestions:
He's talking again about health insurance reform in order to save monies, as well as a wage zero, and furlows, all of which need negotiations.
Fees increase: parking tickets, pay as you throw, home rule for early retirements (with positions left open)

Looking at elimination of entire departments, reorganization of departments, partnerships with not-for-profits...