Friday, August 14, 2009

Akron extends buyout incentives, says 75 have taken separation deal

Akron is extending its deadline for employees to take the buyout. 4 p.m. today (Friday) had been "Zero Hour" but now it's been extended until Aug. 24th at 4:30 p.m.

Mayor Plusquellic's letter to city employees indicates that 75 employees have accepted the incentive to step down, and I can only assume that Law Director Max Rothal is one of them. (His retirement was announced earlier today with Cheri Cunningham now taking over.)

The number is higher than I expected. Most city employees with whom I've spoken in the last few weeks have told me that they doubted many of their co-workers could afford to take the risk.

The Mayor's release indicates that some employees thought they aren't eligible when in fact they are. Still, even with 75 folks stepping forward, Plusquellic warned of tough days ahead:

"Make no mistake - as agonizing as it is for me to consider - there will be layoffs in September of permanent, full-time city workers on multiple levels in order to fill a projected budget deficit of approximately $12 million before year’s end. I would hate to see someone miss this opportunity for a one-time cash payout, and then suffer the loss of their job when this alternative is being made available to all."

Plusquellic said last month that approximately 260+ employees would need to take the buyout in order for the city to meet budget. Hopefully the voluntary furloughs that at least three of the unions have agreed to take will also make a difference.

Still .. I can't help but wonder how our city will operate later this year with what could be a 10 percent drop in overall employees. For example, whether 30 police officers take the buyout or 30 are let go, the net result is still 30 fewer officers.

What are your concerns?

33 comments:

Wayne In Akron said...

Plusquellic has never explained how the 'buyout' program is going to help the immediate $12 million deficit issue.

Anyone with common sense will see that the dollar amount of the 'buyout' being offered to these employees is near or more (depending on what side of $50k per year they earn) than their salary would be for the remaining 3 months of the year.

Doesn't that make the $12 million deficit worse?

Then add in any accrued vacation pay, comp time, or other accumulated compensation for these employees and taxpayers will spend more to 'buy out' their position than will be saved through the end of the year.

Doesn't that make the $12 million deficit worse?

If lower wages are paid to new employees who are brought in to backfill the positions created by those who are leaving (or if those positions are never filled) the savings will not be seen until FUTURE YEARS.

My concern is that Plusquellic's plan is just a 'fear tactic' scheme to address part of some looming, future financial problems without truly dealing with the short-term, remainder of 2009 budget issue.

Anonymous said...

My concern is not only public safety with less officers on the street but officer safety. Less manpower puts these men and women at an even higher risk when backup is not close by or single man cruisers answering calls. I sincerely hope the mayor puts his personal grudges aside and lays off administrative fat within all city departments first.

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