City of Cincinnati: 1,700 furloughs to help cover COVID-19 budget shortfall

Sharon Coolidge | Cincinnati Enquirer

Show Caption Hide Caption Cincinnati mayor announces city will furlough 1,700 workers Mayor John Cranley, in an emotional press conference, announced the city will furlough 1,700 workers.

Mayor John Cranley, in an emotional press conference Monday where he tried, but couldn't hold back tears, announced the city will furlough 1,700 workers.

That's a little more than a quarter of the city's 6000 workers.

No police or firefighters will be laid off. And 90 percent of sewer and water employees will remain on the job, Cranley said. But some departments will lose more than 50 percent of their workforce.

The mayor, city manager, assistant city managers and departments heads are taking a 10 percent pay cut.

Cranley promised all employees would be brought back to work as soon as possible.

Cranley read a letter he sent to employees today, in which he wrote:

"The number of people being placed on temporary emergency leave is staggering and it is understandable to be scared by it. This decision has nothing to do with your performance. In fact, we are taking these dramatic steps now while the federal government is providing these dollars because it will give us the resources we need to bring you back because we need you. I have always been proud of our city workers and I continue to be impressed with the service you provide to our citizens. With the help of your dedicated service, Cincinnati has made a miraculous turnaround in recent years and will bounce back faster than other communities. And we will bounce back together once it is safe to come back to work. I promise you that we will get through this together. This is only temporary. You will be back."

City Manager Patrick Duhaney too described the furloughs as difficult. These aren't just city employees, they were friends who had enjoyed weddings or christenings together.

In a letter of his own to employees, he wrote, "We find ourselves in an unprecedented public health and financial situation that will require us to take aggressive actions and make sacrifices in order to preserve the health and wellness of our workforce and residents, while also providing the core services and public health and safety response necessary to keep the City moving during this public health crisis."

The furloughs begin April 6.

Cranley read a text from an employee who wrote to him, "I don't care what you pay me. I just want to serve." Cranley said he understands that sentiment and reiterated the promise to bring people back to work.

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The savings will equal $40 million, when estimated out over the year.

No details were given about the exact number of layoffs in each department, nor the impact on services those departments provide. The city paves roads, picks up trash and makes sure buildings are safe to live in and visit.

City Manager Patrick Duhaney said revenue has plummeted in response to the new coronavirus. City revenue comes from income tax and other sources like the state's casinos, which are shut down. Duhaney estimated a $24 million shortfall for this year's $413 million operating budget, which ends June 30. For the 2021 budget, which starts July 1, he's predicting an $80 million shortfall – assuming the pandemic is contained by June, he wrote in a memo to council members.

Cranley explained the decision came after the federal stimulus bill was passed so it would be clear what type of benefits would be offered to employees. And he also noted the purpose of the stimulus bill was to allow people to stay home for safety reasons.

Cincinnati City Council authorized Duhaney to secure a line of credit of up to $150 million, should it be needed for new coronavirus-related expenses. To start Duhaney secured $50 million, but Cranley said there will be no borrowing unless it's a necessity and the city is not at that point yet. The city will wait to look at additional borrowing power when rates could be more favorable.

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