San Francisco Mayor Proposes Controversial City Worker Policy To Cope With Budget Crunch

[Omaha Steve]

http://www.laborradio.org/node/12916

Submitted by Doug Cunningham on February 10, 2010 - 9:49pm
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Municipalities continue to struggle with low tax income. San Francisco’s progressive, pro-labor mayor is the most recent to propose a plan to cope by making cuts on the backs of workers. Jesse Russell reports:

San Francisco Mayor Gavin Newsom has proposed a controversial plan to close a $500 million budget gap, layoff thousands of workers who would than need to reapply for their old jobs and if they are rehired will be hired at 37.5 hours per week instead of 40. According to KTVU this would amount to a pay cut of 6.25 percent for the workers. Many workers would be permanently laid off. The proposal could save the city as much as $50 million, but SEIU Local 1021 which represents most of the targeted workers said the reaction by employees is “anger.” Last year city workers represented by the union sacrificed holiday pay to help save the city money. Newsom and the union are sitting down to negotiate, but the Mayor has made it clear that he believes the law is on his side and could go ahead with the cuts without union input. According to the mayor’s office vacation and health benefits would not be impacted, but pensions would see a decrease because they are determined by the number of hours worked.

Detroit is also wrestling with a way to close a budget gap and the city council will vote tonight on a 10 percent pay cut for workers that would come through 26 unpaid furlough days. If passed the vote would also suspend the tuition reimbursement program until 2012 and require workers to purchase generic drugs when they are an option.

[Craftsman]

1. I expect to see more of this, a lot more

Face it most tax payers are feeling the crunch as well and are not willing to abid any tax increases. And they will vote accoringly. And in towns were tax increases have to go to a vote do you really think people will vote for higher taxes to protect gov worker benefits?

[tularetom]

2. Unfortunately, 70 to 80% of any municipal budget is personnel costs

And since no politician will support tax cuts, the only way to balance these budgets, is by reducing salaries and benefits or eliminating positions.

And voters aren't going to object until the lack of expected services begins to bite them in the ass.