Click here to subscribe today or Login.
By STEVE MOCARSKY smocarsky@leader.net
Sunday, March 09, 2003 Page: 1B
HAZLETON – Mayor Louis Barletta said the choice between layoffs and a
reduction in employee hours – or combination of the two – is in the hands of
the city’s three labor unions.
Last week, Barletta sent memos to unions representing City Hall, Department
of Public Services and police department employees offering about eight
options for layoffs and reduction of hours.
The mayor declined to provide copies of the memos, which indicated how many
employees from each department would be laid off if the union did not opt for
reduced hours.
Barletta said he did not want to release the number of possible layoffs
until unions gave him their decisions by April 1 or submitted alternate
cost-saving plans, which he said he would consider.
He said police union officials said they are investigating cutting costs in
their department.
The administration’s internal projections indicate the city could be facing
a $200,000 deficit by the year’s end if he does not implement layoffs or
reduce hours.
Options offered to the unions include employees working four days a week
from April 1 to the year’s end or three days a week from April 1 to Oct. 31.
A state employment office representative gave employees information
recently on partial unemployment benefits that would be available if the
unions opt to reduce hours.
Barletta said that although the formulas are confusing, employees working
partial hours would be eligible for up to 40 percent of the salary they lost
due to reduced hours.
The mayor said the city’s 18 fire department drivers would not be affected
by layoffs or reduced hours because the city is contractually obligated to
keep 18 drivers.
Barletta said cost-cutting measures are necessary to offset spiraling
insurance costs, three years of tax abatements to Laurel Gardens gas
spill-area residents and the lousy economy.
Barletta said talks with Sens. Arlen Specter and Rick Santorum led him to
believe the city will not be reimbursed about $180,000 from the National
Pollution Fund for Laurel Gardens abatements.
Barletta said health insurance premiums rose by about $100,000 and
workman’s compensation claims cost $70,000 more than expected. He said the
city expects about $126,000 less in earned income tax and almost $104,000 less
in mercantile and business privilege taxes this year.
“I can’t just ignore the decrease in revenues. It would be fiscally
irresponsible being what the economy is to move forward and spend money we’re
not sure the city will realize.
Our hopes again are that we do this now and start 2004 back in full
force,” Barletta said.
Barletta said he expects several projects his administration has been
working on to boost revenue by 2004. The projects include supporting the
Markle building restoration, mine land reclamation and marketing 200 acres of
city land at the Hazleton Municipal Airport and along the Arthur Gardner
Beltway.
Barletta expects Markle building renovations will be complete in 2004 and
new tenants will boost revenue. He said 100 acres of the airport land is
designated as a Keystone Opportunity Zone, which makes it attractive to
businesses.
Barletta also expects property taxes to be generated after the Pine Street
Housing project is complete.
Steve Mocarsky, a Times Leader staff writer, may be reached at 459-2005.