San Francisco Municipal Transportation Company says layoffs potential with $68M finances deficit | Bay Space
The San Francisco Municipal Transportation Agency may have to lay off nearly a quarter of its employees to meet its planned budget deficit for the next fiscal year if the agency does not receive government aid funding, agency officials said this week.
The SFMTA is currently well on its way to running a deficit of $ 68 million by the end of fiscal 2020-21. Since the fiscal year began on July 1, revenue has declined 12.7% as San Francisco residents avoid public transit during the coronavirus pandemic.
The agency has also exhausted many of their one-off tools to save money, such as: B. the introduction of a hiring freeze, the reduction of overtime and the use of federal funds from the Coronavirus Aid, Relief and Economic Security Act.
Even so, Jonathan Rewers, SFMTA’s senior budget manager, told the agency’s board of directors on Tuesday that the agency’s actual and projected revenue losses are so great that cuts in service and layoffs are on the table as a method of cutting spending.
SFMTA’s current revenue projections for fiscal 2022 show a net deficit of $ 168 million, even when factoring in financial savings such as the agency’s continuation of the agency’s hiring freeze. According to Rewers, without further federal funding, the agency would have to lay off between 989 and 1,226 full-time employees – this corresponds to 18% to 22% of its employees – in order to compensate for the projected deficit.
While the board took no action on Tuesday to address the projected deficits, its members discussed possible vacation days instead of layoffs as a possible tool to reduce revenue.