City Manager Says 14 Additional Layoffs To Come in March

City Manager Michael Beck announced today that 14 staff members have been notified that their positions are being considered for layoff. The city has 1,953 full- and part-time employees. Those affected employees received notice that their positions may be eliminated in March.

The effects of the recession, which continue to impact city revenues despite recent improvements in the broader economy, growing pension costs and the state’s dissolution of redevelopment agencies, make additional staff reductions necessary to ensure the city remains on track to balance its budget.

Since the beginning of Pasadena’s five-year budget plan in 2009, designed to address the effects of the recession and a structural deficit, the city has cut nearly 300 positions, most of which were achieved through voluntary separations and the elimination of vacant positions.

“In order to maintain fiscal responsibility and stability, additional staffing reductions have unfortunately become necessary” said Beck. “We understand that we’re not just talking about numbers on a page, but about real people, good employees, losing jobs.”

The elimination of these positions, almost all in mid-level management, is expected to save the city approximately $3.9 million per year.

Beck also noted that the city still must absorb approximately $17 million in windstorm recovery costs, which will not be reimbursed with state or federal disaster funds.

“But we’re hopeful,” Beck added, “that the difficult work we’ve done to make long-term budget corrections, along with positive economic trends, will mean that the worst of this is behind us.”

February 9, 2012

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