Budget crunch forces Calif. town to lay off all employees, contract out all services 

According to the Los Angeles Times, Maywood, California is going to extreme lengths to avoid bankruptcy:

Maywood, a small working-class community south of downtown Los Angeles, plans to lay off all its employees, disband its Police Department and turn over its entire municipal operations to a neighbor — an action that appears to be without precedent among California cities.

Several cities in the state have said that they are close to bankruptcy because of the sharp drop in sales and property tax revenues caused by the deepest recession in decades. But experts who track California cities say Maywood is the only case they know of in which a city has dismissed all top positions except for the city manager, city attorney and elected officials. Under the plan adopted by the City Council on Monday night, council members would continue to be paid to set policy, but all services would be contracted out.

Many of the services are being will be contracted out to the neighboring city of Bell. Given California’s budget problems, I would expect to see more of this kind of thing in the Golden State looking ahead.

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Mark Hemingway

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