City of Stockton News Release

Connie Cochran
Public Information Officer

(209) 937-8827
connie.cochran@ci.stockton.ca.us

FOR IMMEDIATE RELEASE : Friday, May 1, 2009

City Issues Layoff Notices

(Stockton, CA)  - The City of Stockton issued 93 layoff notices to employees today. Notices were issued to 55 police officers and 38 employees from other departments. In addition, demotion notices were issued to 7 police sergeants. Layoffs and demotions are effective June 30, 2009. Letters were issued in late March notifying 80 employees of the potential that their positions would be eliminated.

“Unfortunately, we have not come to an agreement with the Stockton Police Officer’s Association and now must issue formal layoff notices ,” said City Manager Gordon Palmer. “These are extremely challenging economic times. By law, we must adopt a balanced budget before the end of the fiscal year and major sources of revenue for the City have dramatically declined. This is a crisis, and the only option we have, without major concessions from SPOA and additional concessions from the other labor groups, is to pay fewer people.”

Layoff notices must be issued prior to the end of the fiscal year to allow sufficient time to assist employees with employment options and transitional healthcare benefits. Some employees who were issued a notice may have the opportunity to revert back to positions formerly held with the City of Stockton. Options for each employee vary based on their work history.

Over 75 percent of the City’s General Fund budget is comprised of salaries and benefits. In an effort to reduce the number of layoffs, the City of Stockton offered a Voluntary Separation Program late 2008, implemented furloughs, and significantly reduced expenses associated with programs and services. Recently, all employees age 50 and with at least 5 years of service were offered an enhanced retirement that provides two additional years of service credit with the CalPERS system. Employees who were interested in participating were asked to submit forms by April 30, 2009. Over 80 employees have elected to participate in the program and must retire before December 26, 2009. Some of the employees who received layoff notices have elected to participate in the enhanced retirement.

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