Hiring freezes ripple across the U.S.

AUSTIN (KXAN) - Cities across the nation have been hit hard by the worsening economy. Some have decided instead of laying off workers, they enact hiring freezes.

National League of Cities

A record number of municipal officials expressed their growing pessimism for the nation’s direction, according to a survey released by the National League of Cities . The State of America's Cities survey demonstrates the widespread nature of the current economic crisis is having on cities’ bottom lines.

The State of America's Cities survey, created nearly 20 years ago, shows that at mid-recession, more than six out of 10 city officials are pessimistic about the nation’s future. This percentage is much greater than at the same point during the two previous recessionary periods. Seven in ten city officials say that their cities see overall economic conditions as being a problem, with nearly one in two reporting that they are having problems financing city services.

City officials were also asked to identify the priorities the next administration should tackle once in office. At the top of the list was making affordable health care for citizens, which previous surveys have found to be disproportionately affecting the budgets of America’s cities.

The second issue cited most frequently for the new administration is deteriorating transportation infrastructure. Almost seven in ten say the quality of roads, bridges, and airports are problems for their city, with 29 percent saying the conditions worsened in the past year.

The survey also found that two in five city officials responding say the worsening relationship between city and federal governmental bodies is posing a problem for their city; 50 percent report that city-state relations are posing a problem. Particularly of grave concern is the impact that unfunded mandates are having on cities. Over half of all respondents say that the impacts of unfunded mandates have only gotten worse in the past year.

“The survey clearly shows that the intergovernmental partnership has broken down. The Federal government and cities need to come together to work for the common goals of improving our nation’s infrastructure and assisting our citizens during these difficult economic times,” says NLC President, Kathleen Novak, mayor, Northglenn Colo. “This will not only help get our nation back to work, but will also make our cities stronger and more globally competitive for decades and generations to come.”

The poll was in the field in September and October, prior to the latest jobless numbers and other recessionary impacts.

The National League of Cities is the nation’s oldest and largest organization devoted to strengthening and promoting cities as centers of opportunity, leadership and governance. NLC is a resource and advocate for 19,000 cities, towns and villages, representing more than 218 million Americans.

Here are some examples nationwide of companies affected by the economy:

ANNAPOLIS, Md
City officials there are fighting over whether to freeze hiring, as they face a bleak economic situation.

David H. Cordle Sr. and Frederick M. Paone, the city's Republican aldermen, introduced a resolution calling for a hiring freeze at least week's meeting and also requested a report on the city's contractual employees.

"What we're doing right now is expanding city government," Cordle said. "The mayor's hired a number of people, and she's trying to paint this rosy picture. We're expanding, and I don't think it's wise to be expanding our personnel budget at this time until we see how the financial picture's going to look and once we start putting this budget together."

Mayor Ellen O. Moyer said the city's finances are in good stead and called the hiring freeze proposal "premature." – Baltimore Sun, 12/28/08

SANTA ANA, Ca.
City leaders have amputated more than $15 million from the budget and have stopped filling vacant positions – even in the Police Department – as city finances have soured with the economy.

City officials have talked about even deeper cuts – possibly including pay freezes – in a series of closed-door meetings with the unions that represent city workers. Earlier this month, the City Council voted to postpone a round of pay raises for the city manager and other department heads.

The city budget was stretched thin to begin with, but it has only worsened in the past several months.

One of its most important sources of money – the sales tax – has fallen more than $6.3 million behind expectations since July. The city has also seen steep drops in the taxes it collects on utilities and on hotel rooms. - Orange County Register, 12/26/08

PEORIA. Ill.:
In light of a downturn in the national economy Peoria will institute a "sensible hiring freeze" starting on January 1st.

The city also plans on taking action to reduce fuel and electricity costs, and reduce the number of employee take–home cars.

In January, the entire senior staff of the City will take part in workshops that will identify