Long Beach in talks with union over concessions, officials say

Long Beach officals are seeking to lower labor union costs. Credit: Newsday / J. Conrad Williams Jr.
Long Beach city officials say they are in talks with labor, police and fire unions over concessions to reduce personnel costs that make up 81% of the city’s budget.
The city has already laid off 164 full- and part-time workers to help lower a $6.5 million deficit. Officials also took out a $4.25 million loan last month to make up for lost revenue during the pandemic and to cover payroll through June.
Council members say a 3.68% tax increase for the proposed $94 million 2020-2021 budget does not account for the loan. The bond must be repaid through either an additional 10% tax hike, grant funding, spending cuts or the city could pursue state legislation to allow for deficit financing over a longer period.
“Labor costs right now are huge for the city and they have to come down because we can’t run the city the way things are structured right now,” council president John Bendo said during a remote budget hearing Tuesday.
The city also plans to shutter the Magnolia Child Care Center, but maintain preschool and after school programs and the senior center once the city reopens.
Long Beach Interim City Manager Donna Gayden said the city is also pursuing additional grants, including state funding following recommendations of the state financial restructuring board.
Gayden said she expects the city to have its bond rating further reduced by Moody’s Investors Service this summer to account for previous unbalanced budgets and continued borrowing.
City officials said Long Beach cannot afford to budget for separation pay, which would have led to an 18% tax increase in next year's budget without bonding.
“It will take five years for the city’s general fund to return to positive funds,” Gayden said. “Our goal is for the borrowing to stop in the next couple years. The problem is we have a lot of payouts of high dollar amounts.”
Bendo said only 6% of the annual budget is allocated for city operations while personal costs and 13% in debt payments account for the other 94%.
Bendo said the city’s finances have been masked by “bogus budgets” that overestimated revenue, underestimated expenses and depleted the city’s rainy-day fund. He said the city was trying to fix structural imbalances in the proposed budget while managing taxes and making union costs affordable.
The CSEA average salary including benefits is $119,645 and only workers hired after April 2017 contribute 10% to health care. The average police salary with benefits is $274,642. The average firefighter salary with benefits is $235,445. Employees are also owed payouts for vacation and sick time after they quit or retire.
The city has raised taxes by 8% each of the past two years, but Bendo said increasing taxes has not contributed to the city’s fund balance, stopped borrowing or reduced personnel costs.
“If we can’t address this issue, what may happen in next year’s budget, we could be looking at a very significant tax increase or service cuts because the math isn’t working right now,” Bendo said.
The 2020-2021 budget has to be approved by May 31. A second public hearing is scheduled on May 18.
Average Long Beach union salaries:
- CSEA: $71,784; $119,645 with benefits
- Police: $164,780; $274,642 with benefits
- Fire: $135,257; $235,445 with benefits
Many employees have been allowed to accumulate unlimited sick, vacation and comp time, plus longevity pay and termination leave.
Source: City of Long Beach
Missing girl suspects due in court ... Hempstead SD weighs staff cuts, school closure ... Trump buyout offer ends ... What's Up on LI
Missing girl suspects due in court ... Hempstead SD weighs staff cuts, school closure ... Trump buyout offer ends ... What's Up on LI