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LA Will Offer Cash Payouts To Convince City Workers To Retire
The City of Los Angeles will offer some workers a cash incentive to retire under a new measure the City Council approved on Tuesday.
The separation agreements were designed as an alternative to the 16,000 civilian worker furloughs that Mayor Eric Garcetti proposed in his budget for the 2020-21 fiscal year, which starts this week.
Labor groups don't want their members to face what amounts to a 10% pay cut -- so unions presented the buyouts as another way for the city to control short-term costs.
"[The program] will also realize ongoing savings if the council remains disciplined in the degree to which empty positions are filled in coming years," Budget Chair Paul Krekorian said.
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Here's the gist: if a furloughed employee who is eligible to retire chooses to do so this year -- they'll get a cash payment stretched out over two years, with $7,500 up front and a larger sum one year later. It will be based on the employee's salary and years of service, with a maximum of $80,000.
Some councilmembers expressed fears about the program's effect on city services and the workforce.
"I worry about that we're expecting junior employees to take on these additional duties," Councilmember Bob Blumenfield said. "This is not a simple, quick fix. I don't know that we have succession plans in place."
"The brain drain will matter," City Administrative Officer Rich Llewellyn acknowledged during a Budget and Finance Committee meeting Monday.
If enough of the 2,800-plus workers who are eligible for the program sign up, buyouts could minimize or eliminate furloughs. If not, furloughs could begin by September.
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But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
Thank you for your generous support and belief in the value of independent news.
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