McClement preps city for imminent deficit
Recent hiring freeze for Frederick employees one of many' measures to cut costs
Citing at least a $6 million deficit looming in the city's budget for 2011, Mayor Randy McClement (R) said he anticipates his recent hiring freeze would be one of many measures to curb costs.
McClement announced the freeze last week as a "cost containment measure," marking a point of financial planning where McClement said he was gaining more perspective about what would be in store when it comes to cutting costs.
Department heads submitted their budget requests for fiscal 2011, which begins July 1, and the city is still waiting to gauge how much revenue it will bring in before it can establish the deficit it will have to close, McClement said.
He said he is working under the presumption of a deficit between $6 million and $10 million based on projected revenue losses. "It doesn't look like it's going to go less than $6 million," McClement said. "And it's the 800-pound gorilla in what we do."
And that's on top of the $3 million deficit the mayor and aldermen have yet to close in the current, $79 million fiscal 2010 budget.
The indefinite hiring freeze establishes a policy that the city would hire no part-time, full-time, or grant-funded employees. The freeze does provide for exemptions, at the mayor's discretion, which will be based on the city's need to provide essential services.
"We won't hire anymore until we get our budget concerns under control," McClement said.
McClement said he anticipates the hiring freeze would be "one of many" measures that he would have to take to curb cost of employees. "I've never hid it," he said. "I said there's nothing we won't look at."
McClement said he did not immediately have available the number of positions that remain unfilled nor the cost savings the hiring freeze would produce by the time the fiscal year ends on June 30.
There were about 12 positions that the previous administration left unfunded in the budget, but the freeze would more apply to any additional personnel or any recent vacancies.
"Logic prevails, because there's going to be positions that are budgeted to be filled [but won't] that we're going to save money on," he said.
Aldermen agreed with McClement's decision to look at hiring as a first step in addressing budget concerns.
Alderman Michael O'Connor (D) said he suggested a hiring freeze during his campaign, and that scrutiny to essential personnel should be a must going forward.
"A hiring freeze is a logical first step when you're looking at any kind of budget shortfall," O'Connor said. "I fully support it. It's the right first step to take in dealing with our budget situation."
Soon all who come to City Hall will be able to gauge the city's budget situation, as McClement said a large graphic of a thermometer that marks at least $6 million will soon don the wall.
It will serve as a reminder of the fiscal challenges the city is facing when tempers flare about budget decisions throughout the budget planning season, he said.
McClement said that the city was also looking to hold several budget work sessions, which will include some weekends.
E-mail Erica L. Green at egreen@gazette.net.