Negotiate temporary changes to personnel costs
A city's ability to deliver public services depends on the skills, motivation, and work of its employees. City leaders should seek alternatives to layoffs; ultimately, if they are needed, layoffs should be targeted. Instead, leaders can negotiate pay raise deferrals, create work sharing programs, and negotiate with health care benefit providers, among other alternatives, to reduce costs.
ASSESSMENT
Some questions to guide your thinking
- Which employees are mission-critical during the pandemic?
- Does the state offer work-sharing benefits?
- When are employee contracts up for negotiation?
- When are health care costs up for negotiation?
Reading
Identifying non-essential personnel costs
Government Finance Officers Association (GFOA) 5 minutes read
This reading discusses ways to manage non-essential personnel costs (including vacancies) to free up space in the budget. Monitoring overtime for non-essential tasks and reviewing the use of temporary staff can relieve fiscal pressure.
- Relevant information is on pages 11-13.
Reading
Understanding the potential of work sharing programs
Detroit Chamber of Commerce 5 minutes
This resource explains the basics of Michigan’s Work Share program, one version of a program provided by 26 US states. Work sharing allows employers (including local government) to keep employees working with reduced hours while the employees collect partial unemployment benefits.
- Shard work means cutting hours instead of workers.
Reading
Taking advantage of work sharing programs
Brookings Institute 10 minutes
The federal CARES Act encourages states and employers to use work sharing programs. The reading discusses the program’s rationale, utilization rates, and CARES Act funding for work sharing.
- Cities can use the work sharing program to cut hours instead of employees.
- Cities can encourage businesses to leverage work sharing.
Reading
Reducing personnel costs
Government Finance Officers Association (GFOA) 15 minutes
Personnel is the largest and most complex expenditure for most local governments. This reading discusses ways to limit and reduce personnel expenditures by moving from traditional approaches to more creative and innovative methods.
- Relevant information is on pages 4-7.
Reading
Identifying non-essential personnel costs
This reading discusses ways to manage non-essential personnel costs (including …
Reading
Understanding the potential of work sharing programs
This resource explains the basics of Michigan’s Work Share program, one version of…
Reading
Taking advantage of work sharing programs
The federal CARES Act encourages states and employers to use work sharing programs. …
Reading
Reducing personnel costs
Personnel is the largest and most complex expenditure for most local governments. …