Minneapolis Mayor R.T. Rybak and City Council President Barbara Johnson recommended today that the city implement a hiring freeze. The proposal is slated to be taken up by the council’s Ways and Means Committee next Monday and likely will be voted on by the full council on December 12.
“These are among the most challenging economic times that our nation has faced in its history,” Rybak said in a statement announcing the recommendation. “Every sector of the economy is feeling the impact of this financial crisis, and certainly government is not immune.”
The move comes as the city wrestles with the likelihood of serious budget problems owing to the tanking economy. According to the city’s finance staff, Minneapolis already faces a roughly $38 million shortfall in employee pension funds owing to stock market losses.