MEMPHIS – Memphis could lay off as many as 1,400 workers to close a projected budget shortfall next fiscal year, a prospect Chief Administrative Officer George Little called “Armageddon.”
According to The Commercial Appeal, Mayor A C Wharton’s administration is anticipating a shortfall of anywhere from $20 million to $70 million next year. The actual amount will depend on how much the city pays toward the $55 million it owes Memphis City Schools.
After the city council cut $57 million from its annual schools contribution in 2008, the school system sued and won. Since then, two courts have ordered the city to pay up. The district filed suit again this month over the unpaid bill, asking a judge to force the city to pay.
The administration hopes to pay the bill in installments, but if forced to pay right away, cutting workers is one option to balance the budget.
Since taking office, Wharton has generated several proposals to pay the debt and fund the budget. They include tax increases, layoffs and wage reductions. The administration also could restore the 18 cents to the property tax rate the council returned to taxpayers in 2008 when it cut school funding.