Milpitas Reboots with Layoffs, Outsourcing

Milpitas made big moves to close its budget deficit.

By Chris Roberts
|  Thursday, May 10, 2012  |  Updated 4:18 PM PDT
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Milpitas Reboots with Layoffs, Outsourcing

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There wasn't much left in the kitty after Milpitas was forced to reorganize city services and lay off 14 percent of its workforce to close a budget gap.

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Blow it all up. Milpitas did.

The cash-strapped city announced plans to lay off 50 employees and drastically "restructure" its city services, some of which will be outsourced, in order to balance a $9.2 million budget deficit, according to the Milpitas Post.

About 14 percent of the city's total workforce received layoff notices. That move will save $1.8 million, the newspaper reported. Outsourcing city services will save another $2.1 million annually, the newspaper reported.

Positions at the city theater will be contracted to outside organizations, the newspaper reported. Some other jobs, like drug intervention programs and school-assistance police officers will go unfilled, the newspaper reported.

Some city departments took on the functions of other departments. The city's parks division was transferred to the public works department, while the city's recreation division was transferred under the human resources department, the newspaper reported.

The city's teen center may close July 1 unless an outside contractor can be located.

The city's total budget for the 2012-2013 fiscal year is $105 million.

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