Your Layoff is in the Mail

Officials from Pontiac, which Michigan declared to be in a state of fiscal emergency in 2009, sent out layoff notices Friday to 104 city employees.

The cuts are projected to save $5.2 million. Pontiac reportedly has a deficit of around $6 million and an accumulated deficit of $10.4 million.

The cuts include 77 full-time positions and a number of vacant positions. About 140 full-time positions are paid out of the city’s general fund, according to a report in the Detroit News.

Emergency financial manager Michael Stampfler told local reporters much of the problem is due to low property tax and water and sewer fee collections. The amended financial plan that was submitted to the state proposes privatizing tax and fee collections, the newspaper said.

Pontiac had an unadjusted unemployment rate of 31.6% in July, compared with an unadjusted 14.0% for Michigan and an unadjusted 9.7% for the nation.

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