Harter institutes city hiring freeze, considers furloughs

0 Comments | La Crosse Tribune, May 15, 2009 | by Marcus, Samantha

La Crosse Mayor Matt Harter has called for a hiring freeze at City Hall as the state's budget shortfall goes from bad to worse.

Harter imposed the freeze after Gov. Jim Doyle told the state's mayors last week to brace for deep cuts to state shared revenue.

"We don't want to be hiring people if we're going to have to lay them off because we don't have the money to fund their positions," Harter said.

Harter called it an across-the-board freeze on non-essential positions, though exceptions will be determined on a case-by-case basis.

The mayor said he's also considered unpaid furloughs and pay cuts. While it hasn't come to that yet, he said, it could.

Doyle's office already proposed a 1 percent cut in shared revenue, and some are speculating that could grow to a 3 percent and 5 percent reduction.

The city this year was expected to receive $10.7 million from the state's shared revenue program.

"Everybody's been a team player so far," Harter said of the city's department heads. "They realize this is for real. If the money's not there, the money's not there."

New numbers released Thursday by the Legislative Fiscal Bureau added another $50 million to the $6.6 billion projected budget shortfall.

The bureau said it expects income tax collections to decline by $34 million over the next two years, and tribal gambling revenue to drop by $16 million.

Mayors across the state have warned of hiring and spending freezes, furloughs and pay cuts as a way to avoid layoffs.

"Rumors are rife and the facts are few, and everybody is holding their breath," said Rich Eggleston, communications coordinator for the Wisconsin Alliance of Cities. "A hiring freeze or salary freeze is probably just the beginning. That's almost good news."