Phoenix Mayor Phil Gordon said the city will eliminate 1,000 jobs in an attempt to alleviate a portion of a projected budget shortfall of $250 million in fiscal 2010.
Phoenix currently has 14,000 employees and an annual budget of $1.2 billion.
The mayor said he and his staff will voluntarily work one day without pay every month, with other city employees asked to follow their example. He will also ask representatives of municipal unions to not seek a pay increase for one year to avoid further layoffs.
Gordon said the jobs would be eliminated through attrition, with positions not being filled when employees leave. He said the hiring freeze might last for two years.
“The nation, our state, our city, and — in fact — the world are struggling through one of the most significant global crisis we’ve faced in our modern history,” Gordon said at a news conference last week.
Phoenix city departments have been asked to submit proposed cuts for fiscal 2010 of up to 30%. The proposed budget for fiscal 2010 will be unveiled in early January.
Gordon announced the Phoenix Work Projects Advancement, a three-part plan designed to boost the city’s economy.
In addition to the hiring freeze, the plan includes new revenue sources, such as advertising on city buses, and additional state and federal funding for several major public works projects.
Phoenix has budgeted $40 million for construction work in fiscal 2009, but Gordon is asking for the state to provide a bridge loan so work can begin on a $250 million improvement project at Sky Harbor International Airport.
Construction projects would boost the economy by providing jobs and increasing tax revenues, according to the mayor.
“They are an investment in ourselves and investment in our future,” he said. “We can cut and run, slash and burn, or we can work our way through the challenges and invest in the future.”
