Saint John seeks report on 'worst-case scenario'
Council will see plan for $6.4M in additional cuts
CBC News
Posted: Feb 14, 2012 6:07 AM AT
Last Updated: Feb 14, 2012 8:11 AM AT
Saint John councillors are asking to be updated on the worst-case financial scenario for the city in case the legislative assembly refuses to approve pension changes.
On Monday councillors asked Pat Woods, the city manager, to give them an assessment of what could happen if the pension changes are denied.
Woods will now prepare a report on what an additional $6.4 million in cuts would do to the city's operations.
The council meeting became heated at one point when Saint John Mayor Ivan Court ejected Coun. Donnie Snook for interrupting Coun. Bruce Court.
Snook said after the meeting that the mayor applies the rules of order unfairly.
The city recently learned the deficit in its employee pension fund is worse than imagined. The pension deficit has ballooned to $190 million from the previously estimated $163 million.
The city has already instituted millions of dollars in cuts to programs and is eliminating 50 jobs as it tries to find $9 million a year to pay down the deficit.
Council has asked the provincial legislature to approve several changes to the city's pension plan, such as cuts to cost-of-living increases, to help deal with the plan's $190-million deficit. The reforms are being opposed by many local union officials.
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