Hayward leaders take pay cut as city preps for fallout from budget cuts

"Hayward's leaders are slashing their salaries. The city council and executive staff announced on last week that they would take voluntary pay cuts and pause cost-of-living adjustments as a first step toward addressing the city's unsustainable finances, which racked up more than $37 million in overtime this past fiscal year, according to the city's payroll data obtained by Bay Area News Group."

"While the savings from the pay cut are a drop in the bucket in addressing the city's deficit, Salinas said the concessions are an act of good faith as officials prepare to renegotiate contracts with the city's labor unions ahead of further budget cuts this fall. I'm proud of my colleagues, and I'm very proud of our executive team, who have stepped up again to take a pay cut to fight this budget deficit together, said Hayward Mayor Mark Salinas."

"Last year, Hayward officials made some significant miscalculations in the city's budget overestimating revenue, underestimating expenses and making a sizable purchase of a movie theater downtown that drained $31 million from the city's reserves, according to city officials. A primary source of the city's burdensome expenses comes from more than $37 million in overtime pay. All of the top 25 overtime recipients for the city were public safety employees."

Hayward faces a $12 million budget shortfall and leaders implemented voluntary pay cuts and a pause on cost-of-living adjustments. Payroll records show more than $37 million in overtime this fiscal year, with the top overtime recipients concentrated in public safety. Officials cite mandatory minimum staffing levels in public safety as a driver of overtime. Last year’s budget miscalculations, including overestimated revenue, underestimated expenses and a downtown movie theater purchase that drained $31 million from reserves, worsened the situation. The city froze hiring for unfilled positions and curtailed training and consultant expenses. Leadership frames the concessions as good faith ahead of labor contract renegotiations and further cuts.

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