Huge Budget Shortfall Projected

An anticipated $800,000 budget shortfall for the fiscal year beginning July 1 is really more like $3.4 million, according to an estimate by the city's new chief finance officer.

The city is facing a 2 percent cap on budget increases for the coming fiscal year and several council members have called for the governing body and administration to work together on an early start to find savings. In comments last month, Council President Annie McWilliams noted the budget might have to be whittled down by $800,000.

But in a report Monday, acting City Administrator Dan Williamson said CFO Ron Zilinski has projected a $3.4 million short fall. Zilinski was not present for Monday's council meeting and an incredulous Councilman William Reid asked for Zilinski to come in person and tell the governing body how he arrived at that figure. Williamson alluded to Zilinski's "personal circumstances" and suggested that Zilinski could take part by phone conference, but Reid said, "I need him here in person ... I need to look him in the eye."

Zilinski was named CFO at the end of November, when both the mayor and council members faced daily fines from the state Division of Local Government Services if a chief finance officer was not hired by the end of the month. The city had been without a CFO since the end of 2007. Zilinski did not start until January and is only working 28 hours a week.

Williamson called the projected shortfall "a tremendous problem" and said it would likely lead to layoffs and "things most folks don't want to talk about."

Councilman Cory Storch called Zilinski's estimate "probably the worst budget gap in our history" and reiterated the need for the council, administration, Citizens Budget Advisory Committee and unions to work together. Williamson said the administration has started the process with the unions.

The city has about half a dozen bargaining units, several of which are working under expired contracts. The hardest hit so far with layoffs has been the Plainfield Municipal Employees Association, while officials have reported little success in getting police and fire unions to make concessions. But representatives of those unions say they have already suffered staffing cuts through attrition.

The council approved two budgets last year. The first, passed in February, was for the fiscal year that ended June 30 and included a 7.5 percent tax increase. The second, passed in December, was for the current fiscal year and resulted in a 5 percent tax increase. But on Monday, Williamson, speaking for the administration, asked the council to consider restoring up to $137,000 in budget cuts affecting the Purchasing and Recreation divisions as well as the mayor's office staff. Reid added in a job cut from civilian staff in the Police Division.

Storch questioned whether funding those affected through the end of the current fiscal year would mean they would be carried over into the next fiscal year through the need for layoff notices. Personnel Director Karen Dabney said those affected were slated to be laid off by April 15, but the state allowed 120 days for a layoff plan. If they were not laid off within 120 days, the city would have to do a new layoff plan, she said.

Reid backed the mayor in calling for the jobs to be restored, saying, "Stop targeting people arbitrarily for layoffs," and called for a halt to "decimating" workers. To make up the difference, he said, "Take everybody's cell phone away."

Williamson broke the $137,000 down into three separate options, but none appeared to gain consensus to be placed on the Feb. 14 agenda for a vote.

Storch said he hoped the mayor did not see the issue as an "all or none battle to the death," but McWilliams said she had met with the mayor to discuss the options and there was "no decision."

"The request is to add the money," McWilliams said, noting again the $3.4 million shortfall. If the money is added, she said, "It goes up $137,000."

--Bernice Paglia