KALAMAZOO, MI (WKZO AM/FM) — The City of Kalamazoo is preparing to scale back some services after projections show a dramatic decrease in revenue during the COVID-19 pandemic.
On Friday Kalamazoo officials said that the city was facing a $1.2 million deficit that could impact programs and services offered in the community.
The city will take part in the federal Unemployment Insurance Agency Work Share Program, which allows employees to get paid for reduced hours while also collecting unemployment benefits. Kalamazoo staff will still be able to receive health insurance and other benefits provided by their employer.
165 employees, or 25% of the municipal workforce, will have their hours cut by up to 50% beginning on Monday, May 18th and continuing until at least July 24th.
Offsetting costs and reducing hours among the affected employees is expected to save the city an estimated $500,000. A released statement by the city government states that the workshare program was chosen because it maintains pay for workers while giving the city flexibility with its staffing.
City leaders say that staff from all departments will be impacted by the hour reductions except for those working in public safety or water and wastewater services.
Offices may see reduced hours and service requests may take longer due to the decrease in available staff at any given time.
“We’re asking all of our departments to make cuts now, to try and save as many programs as possible. If we can some reduced hours savings right now, that can help us some of our programs throughout the rest of the year,” said Deputy City Manager Jeff Chamberlain.
During the initial stages of the outbreak in Michigan, the Kalamazoo City Commission voted to create a $2 million low-interest low fund to help small businesses negatively impacted by the pandemic.
The program uses money transferred from the city’s Foundation for Excellence and is administered by the United Way of the Battle Creek and Kalamazoo Region.
City Manager Jim Ritsema and other city leaders across the state are lobbying for Congress to pass the HEROES Act, which would provide $375 billion to assist local governments facing budget shortfalls during the pandemic.
