City of Salinas discussing potential layoffs to deal with revenue loss
SALINAS, Calif. (KION) The City of Salinas is discussing the potential for furloughs and layoffs to deal with millions of dollars of expected revenue losses.
The layoffs are not set in stone and are just a potential at this time. But the union that represents city workers said the city hasn’t been transparent with them and news of the layoffs has created a panic amongst workers.
Mayor Joe Gunter and City Manager Ray Corpuz announced the news at a press conference Wednesday morning.
Gunter said the city faces $10-14 million loss in revenue and is discussing how to deal with the loss.
Empty parking lots and closed doors at the Northridge Mall in Salinas paint a picture of the economic impact of the coronavirus pandemic.
About half of the city’s revenue comes from sales tax, and with many local businesses closed, the city has taken a financial hit.
Corpuz said if they dealt with the loss only through layoffs, that would mean about 100 positions potentially laid off. But the city is going to look at other options first including freezes, service reductions, furloughs, and would then resort to layoffs if needed.
“Everything is predicated on how well we all do with the virus because it’s not just a pandemic. It’s an economic crisis for us,” Corpuz said.
If necessary, the lay-offs would most likely come in fiscal year 2021 which starts in July.
"We’re looking at all options that are on the table and I tell people that–and this is not a fear factor–it’s just the basic truth," Mayor Gunter said. "Everything will be on the table. Every job will be on the table. Every salary will be on the table. This will be a very tough time for this city as we face what's going forward."
It’s unclear which departments would be impacted.
The city has already frozen 23 positions. Salinas Police Chief Adele Fresé told KION 5 of the 23 positions recently frozen are from PD. Fresé said this is in addition to 12 positions that have been frozen for a year due to budget reductions. She added that more positions from PD are expected to be frozen.
Now, union SEIU Local 521 is speaking out about the news, saying the city failed to inform workers about layoffs.
“First the City refused to provide clear information and guidance regarding working conditions due to COVID-19, and now the City has created a serious panic amongst workers by not informing us nor our union of these decisions,” said SEIU 521/SMEA Chapter President Daniela DeBaca, who works for the city's Code Enforcement team, in a statement to KION News.
The last time the city had to make layoffs of this magnitude was during the Great Recession. There were 135 lost positions between 2008-2011.
The city manager said the financial condition of the city will be dictated by how long the shelter in place will be in effect.
If the layoffs happen, employees would get 60 days notice.
