Council Wary of Mayor’s Budget Lay-offs

MEMPHS, Tenn. - In the face of budget shortfalls in the last few years, Memphis City Council members have passed out raises to city workers. They've also refused to raise taxes. The idea of a tax increase or layoffs will likely be a hard pill to swallow once budget talks begin.

The biggest cost for the city of Memphis is its employees.

Facing a shortfall that could be as much as $70 million, laying-off city employees are an obvious way to save and that's the direction Mayor A C Wharton appears to be heading, there's just one problem- the Memphis City Council.

"I am opposed to laying-off any of our employees," said Councilman Myron Lowery.

Lowery is chairman of the council. The council must approve the budget proposed by the mayor. Wharton is looking at four different options, all that included layoffs at the least, nearly 700, at the most, more than 2,100.

Some on the council are willing to consider employee cut backs.

"There's no doubt we have too many employees and at some point these decisions are going to have to be made. I think the way to do it is to be compassionate, to set a time line and help people try to get new jobs with a provider," said councilman Kemp Conrad.

Conrad thinks big savings can be found in out sourcing city services but he will not support a tax increase.

An 18 cent increase is proposed in one of the mayor's options.

"Even keeping taxes flat should not be our goal; our goal should be to start lowering the property taxes in Memphis," said Conrad.

Lowery also says he doesn't support a tax increase.

He says that and layoffs can be avoided by finding new sources of revenue. He says he's researching options now.

"It’s my firm belief we need to tighten our belts. I think we can do it with out layoffs," said Lowery.

The city council should get a first look at the mayor's budget in April.