California Cities Lay-off Workers

January 6, 2009 9:39 a.m. EST

Lincoln, CA (AHN) - At least two California cities have reduced the number of their public employees ahead of the state's planned cut in manpower. Lincoln City announced Friday workers will be laid off, but has not yet released exact number. Sacramento said it will axe at least 8 employees.

According to Lincoln City spokeswoman Jill Thompson public safety personnel would be among those who would lose their jobs as a result of an expected $1.5 million budget deficit in Lincoln's $12 million budget. Thompson added city manager Jim Estep met with the City Council in a closed door session to discuss how many workers will be removed from the city's payroll.

On Friday also, Sacramento's Development Services Department informed eight employees they are being laid off because of the stop of construction projects in Natomas and other areas. Sacramento expects its budget deficit to exceed $40 million for the next fiscal year.

California itself is bracing for manpower and service cuts with an anticipated $40 billion budget gap, but Democratic legislative leaders said they disagreed with a plan to reduce the Legislature's budget by 10 percent.

Aside from reducing the legislature's budget, California Gov. Arnold Schwarzenegger has proposed to reduce state employees' wages by 10 percent.