Tacoma lays off dozens amid pandemic; city manager, other executives to take pay cuts
Dozens of city of Tacoma employees will be laid off for periods up to 12 weeks starting Monday as the city grapples with an anticipated $40 million budget shortfall from the impacts of the COVID-19 pandemic.
The 65 employees come from a range of departments, including Tacoma Venues and Events, Public Works, City Attorney’s Office and Tacoma Municipal Court. They join 85 Tacoma Public Library employee layoffs announced last week.
“These employees are part of work groups that have experienced closures or significantly impacted work volumes due to statewide restrictions implemented to curb the spread of COVID-19. These employees have been notified,” City Manager Elizabeth Pauli said in a statement shared with The News Tribune.
The city employs about 2,250 people.
The 150 layoffs are anticipated to save the city approximately $1.5 million; $1 million in general fund savings and $500,000 in savings to other impacted funds, including Tacoma Dome, Convention Center and parking funds.
While on temporary layoff status, employees will receive full health benefits and will not be required by the State of Washington to look for another job while collecting unemployment benefits, according to Pauli. Employees approved for unemployment also qualify for an additional $600 per week through July 25 under the federal CARES Act.
In addition to the layoffs, Pauli, Tacoma Public Utilities director Jackie Flowers and other executives at TPU and the city will take a 3 percent voluntary pay reduction in the form of an 8-day furlough. The furlough will take place sometime between May 1 and July 25.
Based on Pauli’s 2019 offer letter, a 3 percent pay cut is just shy of $8,000 of an annual salary of $264,000. TPU director Jackie Flowers will take a salary reduction of about $9,900, based on information from a 2018 offer letter with a $330,000 annual salary.
So far, the city has identified $28 million in savings to address its budget shortfall that includes actions like hiring freezes and early retirement incentives, the cancellation of one-time initiatives and capital projects not directly supporting essential services, and tapping into savings and reserves.
Additional temporary layoffs are likely to take place on May 11, added Pauli.
“We continue to work hard to close the gap, but we are not there yet,” Pauli said. “While we hope for a quick recovery, even the most optimistic economic forecasts indicate revenue impacts from COVID-19 well into the next biennium … It is our hope that decisive action now will lessen the need for more severe and permanent actions, such as wage adjustments or permanent layoffs.”
This story was originally published May 4, 2020 at 1:18 PM.
