A judge in Madison County, Ind. last week ruled that Indiana law gives municipalities the right to lay off employees because of economic conditions.

The ruling was part of a dispute between the city of Anderson and the firefighters. The decision by Circuit Court Judge Dennis Carroll invalidated a part of the firefighters’ contract that prohibits layoffs.

The city council Monday night voted to cut nine firefighters and three police officers to help balance the $63 million fiscal 2013 budget.

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