City employees will face layoffs

TERRE HAUTE, Ind. (WTHI) - Terre Haute's diminishing budget forces the city government to make layoffs.

Terre Haute city officials cut $1 million dollars in the city's budget over the weekend. Now some city employees could face layoffs.

The Terre Haute police, fire, and street department positions will likely remain, but Mayor Duke Bennett said administrative positions in those departments will be looked at.

Good news for you when it comes to public safety, but bad news for workers in the other 19 city departments where layoffs will be considered. Some of those departments include transportation and the parks department.

"No body wants anybody to lose their job but our biggest expense is salary and benefits," Terre Haute Mayor Duke Bennett said. "So you eventually get to a point where that's all you have left." .

It's unclear if services will be greatly impacted. The city plans to reduce several positions rather than a massive layoff.

"I don't think anybody is ever really prepared and I think government itself is ever really prepared to reduce positions," Mayor Bennett said. "This is an extreme case of a very unique situation."

Terre Haute lost $7 million this year because of property tax caps. A major loss in revenue leaving the city with only two options; either cut people and services or go bankrupt.

To put into perspective on just how financially hurt the city is out of 119 cities in the state, Terre Haute ranks as the 7th hardest hit city in Indiana.

Out of 3,133 taxing units in the state, like schools, townships and counties, the city of Terre Haute is ranked 12th hardest hit.

The layoffs are expected to be announced at the end of this year or early next year, after the budget is finalized.

Mayor Bennett said buyouts will likely happen next year in preparation for the 2012 budget.

To hear more from Mayor Bennett about the buyouts click on the bonus video on this page.