After failing to meet his objective of convincing scores of municipal employees to quit their jobs, Chapala Mayor Joaquin Huerta this week announced a “Plan B” to avoid bringing down the axe with outright dismissals to reduce payroll expenses.
The ultimate aim is to permanently cut 150 to 200 positions out of the budget in order to keep the municipality on a sound financial footing.
City Treasurer Jose Guadalupe Dueñas revealed that Chapala is running with a deficit that will total around 30 million pesos this year. Meeting the full goal in staff reductions would bring some relief to the tune of an estimated drop of 500,000 pesos in monthly expenses.
Since mid-May staffers at all levels had an opportunity to voluntarily resign their posts, with full settlement of standard labor benefits plus an extra month’s pay. Only 14 individuals, among them two department chiefs, have gone for the deal to date.
Under the new belt-tightening strategy, most of city hall’s 850 employees have been persuaded to accept rotating periods of unpaid leave with the assurance of keeping their jobs. With the exception of police and civil protection officers and garbage collectors, who will keep to normal routines, staffers from the top down will sacrifice up to one week’s pay every month while on temporary hiatus.According to Miguel Pulido, the city’s Oficial Mayor (personnel manager), records show that the government’s staff mushroomed during the past two administrations. He pointed out that when former mayor Gerardo Degollado came into office in January, 2007 there were 520 employees on payroll. The number jumped to 810 by the time his term ended three years later and increased by another 40 under the watch of Jesus Cabrera.
Huerta says his administration is determined to adhere to strict financial disciplines, making every effort to slash non-vital expenditures and operate on a no-frills shoestring. “We are just covering basic costs for salaries, fuel, electrical and telephone service to maintain essential services.” Suggesting that Plan B will remain in effect for the next two to six months, he is convinced the government will eventually be able to slim down the work force and still perform efficiently.