More staff cuts in East Chicago's future

BY JOE CARLSON, Times of Northwest Indiana
jcarlson@nwitimes.com

EAST CHICAGO | Although city administrators last month handed out 58 pink slips and eliminated an entire department, more work force cutting is in East Chicago's future.

That was the message Wednesday from East Chicago Controller Charles Pacurar in a meeting with The Times editorial board about ongoing efforts to reduce the city's budget ahead of the state mandate to slash $18.5 million in annual city spending by 2010.

Pacurar said there is almost no way the city will achieve that goal, no matter how many people are laid off and how many departments are trimmed or eliminated.

"There is no way we can meet the $18.5 million (reduction) by 2010. We can't do that," Pacurar said. "If we could go 5 percent a year until 2012, we could probably do that."

Just this week, Pacurar told all of his department heads to find ways to cut their expenses by 20 percent each.

"That's an unrealistic number, to be honest with you. But I figure if I ask for 20 percent, maybe I'll be able to get 7 percent," Pacurar said.

City officials already have cut more than $1.8 million a year in expenses by changing city health insurance rules and charging for ambulance services. Last month's layoffs will save $3.5 million in salaries and medical expenses.

Yet it's not enough. This fall, city officials will once again open up the early retirement program. If enough workers agree to retire, it could prevent more layoffs, but nothing is certain, Pacurar said.

Mayor George Pabey in 2005 inherited the infamously bloated city work force from former Mayor Robert Pastrick, who has admitted to giving people city jobs after they were laid off by the steel industries because unemployed residents are more likely to commit crimes.

East Chicago had more city workers than Hammond, even though Hammond had more than double East Chicago's population.

Today, East Chicago has 819 employees, down from about 1,000, Pacurar said.

But if the city can't cut its budget to meet the requirements of property tax caps legislators approved this year, city officials will apply for relief from the new Distressed Unit Appeal Board, which has the power to dictate specific budget cuts.

"They take complete control once you file for the distressed city (designation)," Pacurar said. "It's probably the next thing to declaring bankruptcy. But we will not go bankrupt."