How Layoffs are Reported in the Press

Grand Terrace's city layoffs cut into child care center
10:00 PM PST on Tuesday, January 6, 2009

By JULIE FARREN
The Press-Enterprise

Five employees with the city of Grand Terrace will lose their jobs as of Friday after the City Council approved layoffs Tuesday night.

The council voted 3-0 to eliminate the five positions, saving the city $205,000.

Councilman Jim Miller abstained and Councilwoman Bea Cortes was absent.

The child care center will reduce its staff by three employees -- a cook and two teacher's aides. A lead teacher and a teacher's aide will have their hours reduced by 14.5 and 6 hours, respectively.

The city also will lay off a maintenance supervisor in the Community Services Department and a planning secretary in the Community Economic and Redevelopment Department.

Acting City Manager Steve Berry said the city's budget is unbalanced by $194,000.

"It's a 9 percent reduction of our employees at City Hall and a 17 percent reduction of employees at the child care center," Berry said of the cuts.

Miller was the most vocal about the layoffs, saying that he would have liked to see the city's mid-year projections before having to make a decision that would affect five people's lives.

"We have not had a chance to review where other possible cuts could come except for employees," Miller said.

There are 23 full-time employees at City Hall and 17 full-time employees at the child care center.

Berry said there has been a loss of revenue over the past six months at the child care center because of a 23 percent decrease in the number of children attending.

Cathy Varela, the center's director of child care services, said it is a hard predicament to be in, having to reduce the number of employees. But she told the council that the job cuts will not affect the quality of care the children get at the center.

"The level of service will continue," Varela said. "The positions we're looking at to eliminate will mainly affect administrative staff."

One thing city officials didn't want to do was affect services to residents, so there will be no layoffs involving police or fire protection.

Reach Julie Farren at 951-368-9513 or jfarren@PE.com



Grand Terrace City Council OKs layoffs
Stephen Wall, Staff Writer
Posted: 01/06/2009 07:28:28 PM PST


GRAND TERRACE - Nine months ago, city officials were upbeat about the city's economic future.

"The city again remains in relatively good financial condition for the coming year," former Finance Director Larry Ronnow wrote in an April budget message to the City Council.

Despite having to dip into reserves to shore up a nearly $200,000 budget shortfall last year, officials predicted that rising sales-tax revenue would brighten the fiscal outlook.

What the city didn't anticipate was a deepening recession and an unprecedented housing market meltdown.

Responding to economic realities, the council Tuesday night voted 3-0 to lay off five employees.

The eliminated positions were a maintenance supervisor, a planning secretary, along with a cook and two teachers' assistants at the city-run child-care center.

The hours of another teacher's assistant and a teacher at the center will be reduced.

"We're cautiously optimistic for 2009, but we must be fiscally responsible," Mayor Maryetta Ferre said before the meeting. Ferre, along with Councilwoman Lee Ann Garcia and Councilman Walt Stanckiewitz, voted for the layoffs.

Councilwoman Bea Cortes was absent. Councilman Jim Miller abstained, saying that he wanted more detailed financial information before he would vote to lay off employees.

Three laid-off employees who are eligible to be reimbursed will have the city cover their health costs for the next 90 days.

After the layoffs, the city has 21 full-time employees and 15 full-time workers in the child-care center.

City officials expect to save $205,737 per year as a result of the cuts.

Services such as police and fire protection and library programs are not being cut, said acting City Manager Steve Berry.

Berry said the state's budget crisis is forcing the city to cut costs, but that he doesn't expect any more layoffs.

"I think we've cut pretty much to the bone," he said before the meeting.

California's budget deficit is projected to grow to nearly $42 billion by mid-2010, Gov. Arnold Schwarzenegger's administration said in December. Local officials fear the state will take local money to balance the budget.

"We're doing this because we want to be fiscally sound," Berry said. "We have a very conservative city. The residents expect the budget to be balanced. I don't think they will accept too many years of red ink."