El Monte avoids bankruptcy
We reported in an earlier blog that the City of El Monte was on the verge of filing for bankruptcy if they weren't able to get salary concessions from their Police officers.
It looks like the threat worked as the union agreed to concessions last week. However, besides salary concessions, there will still need to be over 100 layoffs and the closure of one fire station to close the $12 million budget gap. All of these cuts were necessary despite getting the voters to approve a sales tax increase that raises El Monte's rate to a staggering 10.25%.
Other employees had already taken 10 percent pay cuts and agreed to pay for a greater portion of their medical. El Monte has been heavily dependent on sales tax revenue and the economic bust has reduced their sales tax by $5.5 million in the current year.
To read more about El Monte, click here.
It looks like the threat worked as the union agreed to concessions last week. However, besides salary concessions, there will still need to be over 100 layoffs and the closure of one fire station to close the $12 million budget gap. All of these cuts were necessary despite getting the voters to approve a sales tax increase that raises El Monte's rate to a staggering 10.25%.
Other employees had already taken 10 percent pay cuts and agreed to pay for a greater portion of their medical. El Monte has been heavily dependent on sales tax revenue and the economic bust has reduced their sales tax by $5.5 million in the current year.
To read more about El Monte, click here.
Labels: Budget
posted by City Manager @ 3:11 AM
1 Comments:
At August 23, 2009 7:41 AM ,
Sandra said...
I think you have a really good blog/community and would like to ask you to register on the EL Monte community as an expert.
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