SLO management to take a pay cut
December 7, 2011
San Luis Obispo City Council voted 3-2 to approve an upper level employee proposed pay cut on Tuesday night.
The move is slated to save the city $807,000 annually.
Councilwoman Kathy Smith and Councilman Dan Carpenter voted against the proposed cuts because they thought SLO’s top earners should be doing more to save the city money.
Smith criticized City Manager Katie Lichtig for not taking a lead position in setting the proposed cuts. Lichtig had instructed members of her staff to come up with the proposed pay reductions.
Lichtig earns a base salary of $221,500. She agreed to forgo her car allowance and reduce her pay by $39,500.
In addition to the salary cuts, the 73 employees who are not represented by a union are to begin paying the 8 percent employee portion of their retirement contribution to the state retirement program, which was previously paid by the city.
The cuts in management staff pay are also intended to help sway employee unions to make similar cuts in an attempt to balance the city’s budget.