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Budget Forces 100 New Layoffs

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By ELLEN GEDALIUS, The Tampa Tribune

Published: November 15, 2007

Updated: 11/15/2007 01:11 am

TAMPA - Mayor Pam Iorio announced Wednesday that she is laying off 100 city workers, the second announcement of mass layoffs in roughly five months.

The layoffs are in response to budget shortfalls stemming from property tax changes.

The affected employees were to be notified Wednesday, Iorio said. They will be given six or seven months' notice that their positions are being eliminated but will not receive severance packages.

The layoffs will affect mostly lower-level employees, primarily those who provide janitorial and security services for the city. Iorio said the city will contract out that work to private companies.

At a news conference Wednesday afternoon, Iorio outlined a three-year plan to make 11 changes to make government more efficient. The changes are expected to save the city about $3.4 million annually.

"This is not just about one-time savings here and there," Iorio said. "This is about fundamentally looking at how we are going to provide services."

In June, Iorio announced the layoffs of 121 city workers and the elimination of an additional 115 vacant, full-time positions. The move came in response to property tax cuts mandated by the Legislature. In preparing the existing year's budget, the city had to cut about $20 million. The staff reductions accounted for about $15 million in savings; some services also were cut.

The Legislature also put limits on how much local governments could increase tax revenue in future years, though allowing some adjustments for growth. That means that regardless of whether referendum to further reduce property taxes passes in January, cities must continue to trim spending.

Over the summer, the city formed an in-house task force to study how to make government more efficient. One idea from the task force was to contract out for all security services, rather than just some. That means 50 security workers will be laid off, saving the city about $355,000.

Other plans include consolidating mowing and maintenance contracts, eliminating two payroll employees and making some technological improvements. Thirty-eight janitors will be let go, saving the city almost $1 million.

Much of the savings comes from not having to pay for employees' benefits packages.

"We have got to shrink," Iorio said. "We have to find better ways of doing things."

Buckner said employees were to be told Wednesday "there is the potential for their job to go away." He said exact numbers of affected employees could change as contracts with private companies are awarded.

Several dozen of the employees laid off this summer were given other jobs in city government. Iorio said that is unlikely to happen this time.

The mayor said she hopes the private-sector companies the city hires to do janitorial and security work will employ some of the laid-off city employees.

James Buckner, the city's technology chief, headed the efficiency task force. He said the city would track spending on the private contracts to ensure the city "is getting its money's worth."

The Amalgamated Transit Union, representing the majority of city employees, isn't happy.

"The union feels it's not called for," said Pat Russell, an executive board member of the union. "I assume it's related to the property tax initiative. We don't think it's justified."

He said contracting work out to private companies is a disservice to city residents. He said private firms care primarily about money.

"They do not care about providing quality services to the citizens," Russell said. "City employees do."

Council members interviewed Wednesday said they didn't know the layoffs were coming.

Councilman John Dingfelder said he doesn't like the mayor's plan.

"The city is proposing to lay off 100 longtime employees who after many years of dedicated service still only earn about $15 per hour," Dingfelder said. "These folks have worked long and hard to have health insurance for their families and a small pension for their retirement.

"Shame on the city for picking on those who can afford to lose their jobs and benefits the least."

Councilman Charlie Miranda said he needed more information before forming an opinion.

"I'd like to compare the packages to each other, and I don't have the packages," Miranda said. "I don't know what they're replacing at what amount with what hours."

Looking ahead, Iorio said the city will look at getting rid of employees' pension plans and starting a 401(k) program. Any changes would affect new employees only, not existing ones.

A hiring freeze implemented in April remains in effect.

Iorio said she hasn't ruled out future layoffs.

Deputy County Administrator Wally Hill said the county has no immediate plans for more layoffs. Officials are awaiting the results of January's referendum before determining whether future layoffs might be necessary, he said.

Reporter Ellen Gedalius can be reached at (813) 259-7679 or egedalius@tampatrib.com.

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