Friday, August 14, 2009

UPDATE: City of Akron says 106 take buyout saving $6 million

New info released from the COA around 4:30 p.m. today says that 106 employees have taken the buyout and that it will save the city around $6 million, which is about half of what's needed.

We still don't know how the cuts spread out across the departments (police, fire, water, etc..) but I'd say that's an amazing start for financial savings, but the adjustment to city services is just beginning. Eric

6 comments:

Wayne In Akron said...

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New info released from the COA around 4:30 p.m. today says that 106 employees have taken the buyout and that it will save the city around $6 million, which is about half of what's needed.
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Eric...

The $6 million amount is an ANNUAL FIGURE.

The Mayor has told citizens that $12 million needs to be saved between now and the end of the calendar year.

If you read my comment to your previous blog posting, it is unclear whether there will be a single penny of savings created in 2009 from the employees who are taking a buyout.

Eric Mansfield said...

Wayne, I think you're mistaken .. those people will leave by October 1st .. and the savings will include their beneftis beyond their salaries ..

and the $12 million projected shortfall is dollars coming in this year, not necessarily dollars going out in this Fiscal year...

I will check further, but I don't believe you are correct ..

Eric Mansfield said...

and Wayne, your post doesn't address the 106 employees stepping forward .. that's got to be more than most expected .. and I'm more concerned about the areas that will be working with fewer people .. because that's the impact on real people .. at the neighborhood level .. city leaders will figure out the $$, but the citizens -- you included -- should be asking about services instead of trying to out-due the Mayor's calculator ..

Wayne In Akron said...

The buyout will certainly show how well the "team" has developed and prepared its next level of staffers.

One of the world's great businessmen once told me that the true mark of how well you've done your job managing your business is how well those you leave behind perform when you are gone.

Time will soon tell how well our City's leadership has fared in this area.

Wayne In Akron said...

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Wayne, I think you're mistaken ..

those people will leave by October 1st .. and the savings will include their benefits beyond their salaries
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The following comes from ANN's coverage of the story...

"The 106 departures represent an ANNUAL payroll expense of approximately $6 million, according to Akron Finance Director Diane Miller-Dawson.

In addition to the savings in salaries, the city will also reduce other benefit costs for each employee, including health care costs, pension benefits paid by the city, and other expenses."

Anonymous said...

when there is a buyout, if the position is needed & useful, another will be hired to do the work. If the work was unnecessary, or not needed, that person should not have been working to begin with