St. Paul's Mayor Coleman proposes laying off 7 workers

Mayor Chris Coleman is expected to present the St. Paul City Council with a budget amendment today that calls for laying off seven employees in the Department of Safety and Inspections.

Additionally, 36 trades inspectors in that department would have their hours cut from 40 to 32 per week. That would save about seven jobs.

The measures are part of a restructuring plan to cut costs in the department as the city tries to deal with an estimated $13.4 million budget gap this year. Safety and Inspections has seen dramatic decreases in revenue from building permits and business licenses. The reorganization must be approved by the council.

Coleman sent an e-mail to city employees Tuesday updating them about the department changes and other cost-saving efforts.

For the last couple of months, Coleman and city department directors have been running scenarios to deal with a loss of state aid. There are three different budget proposals among Gov. Tim Pawlenty, the state senate and state house that attempt to deal with a $4.6 billion projected shortfall over the next two years.

It's a given the city will lose some local-government aid, but how much is still in question. Proposed city budget cuts have included closing a library, shuttering recreation centers and laying off police.

Coleman is going to try to hold off on other budget reductions until after the legislative session.

The inspectors came up with the idea of reducing hours as a way to save jobs, said Harry Melander, executive director of the St. Paul Building and Construction Trades Council.

"The mayor met with all of us and was clear he'd be flexible to preserve as many jobs as possible," Melander said.

In his e-mail, Coleman said an ongoing hiring freeze and early retirement packages helped cut spending by $3.5 million since the first of the year.

He added that he and his staff have taken 5 percent pay cuts and are foregoing cost-of-living raises, as are department directors. City Council members and the council staff also have discussed skipping the raise.

"As we work through the process and make final decisions, we anticipate that several departments will experience significant times of transition and reorganization," Coleman wrote.

Chris Havens • 612-673-4148