Paterson, New Jersey is grappling with a significant budget deficit and is considering various measures, including potential layoffs, to address the shortfall. The city has applied for a substantial increase in state aid to bridge the gap and avoid drastic measures.
What happened
Paterson officials are weighing options to address a budget gap, including potential layoffs and unpaid furlough days for city employees. These measures are outlined in the city's application for increased state aid.
How many employees affected
Up to 58 Paterson municipal workers may lose their jobs if the city's request for transitional aid is denied. Additionally, about 680 city employees, excluding fire and police departments, could face unpaid furlough days under a worst-case scenario.
Why layoffs happened
The potential layoffs and furloughs are being considered due to a significant budget shortfall. The city is seeking increased state aid to close the budget gap and avoid these measures.
Company background
Paterson is a city in New Jersey facing financial challenges. The city has requested a $48.5 million increase in state aid to address its budget deficit. In 2010, a denial of state aid resulted in 400 layoffs and a property tax increase.
Industry impact
The potential layoffs would primarily affect municipal workers in Paterson, impacting city services and the local economy. The situation highlights the financial challenges faced by some municipalities.
What's next
The city's legislative contingent is working to secure state aid. The decision on Paterson's funding request will determine whether layoffs and furloughs will be necessary. The city is also exploring other options, such as deferring employee paychecks and pushing back debt payments, to mitigate the budget gap.
Source: northjersey.com