11/04/09 - Gibson County
Milan Layoffs
Due to Insurance Spending
By: Brandon Artiles
bartiles@wbbjtv.com
7:13 p.m.
By: Brandon Artiles
bartiles@wbbjtv.com
7:13 p.m.
Mayor Chris Crider's decision
to layoff five city of Milan employees was a result of a
budget currently busting at the seams.
According to Milan's budget director, Julieanne Hart, it was a product of basic economic principles.
"We see that we're just spending more than we're making," Hart said. "It's just that plain-and-simple." Through the first four months of the 2009-2010 fiscal year Hart calculated that the city is on pace to out spend their $6.3 million budget by $580,000.
Hart acknowledged that they anticipated problems entering the new budget, but did not expect expenses to be so high concerning health insurance for city employees. "Mainly the health insurance is at record levels for the year," Hart said.
Crider and Hart concurred that the current crisis is making city leaders examine their health insurance coverage. "Health insurance benefits in Milan are awfully generous," Crider said. "Generous to a point that it's causing budget problems."
Last Friday, city leaders decided to hand out pink slips to two members of the police department and three members of the public works department. Crider said that the layoffs were simply a business decision and categorized the decision as "very tough". "At the same time the tax payer is very interested in us taking care of business and running government as close to a business as we can," Crider said.
Hart said that the five laid off employees will save the city approximately $150,000, in the remaining eight months of the budget year. The layoffs only answer a fraction of the $580,000, which will mean further action according to city leaders. "We got a little bit to go, but I don't know that it's going to come from layoffs," Crider said. "I want it to come from health insurance."
Crider added that the five employees will receive nine months of unemployment benefits.
According to Milan's budget director, Julieanne Hart, it was a product of basic economic principles.
"We see that we're just spending more than we're making," Hart said. "It's just that plain-and-simple." Through the first four months of the 2009-2010 fiscal year Hart calculated that the city is on pace to out spend their $6.3 million budget by $580,000.
Hart acknowledged that they anticipated problems entering the new budget, but did not expect expenses to be so high concerning health insurance for city employees. "Mainly the health insurance is at record levels for the year," Hart said.
Crider and Hart concurred that the current crisis is making city leaders examine their health insurance coverage. "Health insurance benefits in Milan are awfully generous," Crider said. "Generous to a point that it's causing budget problems."
Last Friday, city leaders decided to hand out pink slips to two members of the police department and three members of the public works department. Crider said that the layoffs were simply a business decision and categorized the decision as "very tough". "At the same time the tax payer is very interested in us taking care of business and running government as close to a business as we can," Crider said.
Hart said that the five laid off employees will save the city approximately $150,000, in the remaining eight months of the budget year. The layoffs only answer a fraction of the $580,000, which will mean further action according to city leaders. "We got a little bit to go, but I don't know that it's going to come from layoffs," Crider said. "I want it to come from health insurance."
Crider added that the five employees will receive nine months of unemployment benefits.
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