Manhattan city commissioners are talking about laying off as many as 70 city employees as they consider cost-cutting measures to avert what they say is a potential budget crisis. City officials during Tuesday’s meeting weighed options to increase the general fund. The fund’s cash balance is expected to drop from $11 million to $6 million by the end of 2024. Officials have said they like to keep the cash reserve above $10 million. Commissioners have initially targeted a combination of staff reductions and tax increases. Personnel currently makes up around 70% of the general funds’ expenses. Commissioners are looking at cutting 35-70 staff, with limits of 36-32 hours a week for remaining staff. This is predicted to save between $1 million-$4 million a year. City staff also suggested that putting a 1% sales tax increase on the November ballot to fund a proposed indoor aquatics project would free up money in the general fund. Another option is dipping into $4 million in city ARPA funds. The city also plans to halt replacing vehicles and equipment through the end of 2025. It may also halt capital improvements, filling vacancies and pay increases.
Source: 1350 KMAN
