California City Lays off All Employees, Outsources All Services

Friday, June 25, 2010

Maywood, a small working-class town in Los Angeles County that’s been no stranger to controversy, has outdone its stormy past. Facing a significant budget gap and loss of insurance, Maywood’s city council has decided to lay off all 100 of its employees and contract out all services for its 45,000 residents.

Accounting, street maintenance, parks, even public safety now will be handled by companies or other local governments, while Maywood becomes the first-ever “100%” contracted-out city in California. Well, almost 100%. The city council voted to keep itself on the payroll, along with the city manager and city attorney.
Maywood officials said declaring bankruptcy was not an option because the city had lost its general liability and workers’ compensation insurance due to high-risk issues.
The city has previously garnered headlines for its contentious city politics, including a city clerk being accused of trying to kill a councilman. The police department was criticized for aggressively operating checkpoints and impounding hundreds of cars from the local population, many of whom are illegal immigrants.
With the police force eliminated, Maywood will rely on Los Angeles County sheriff’s deputies to keep the peace, while the neighboring city of Bell will take charge of Maywood’s City Hall.
-Noel Brinkerhoff
Maywood to Hire Others to Run the City (by Ruben Vives, Jeff Gottlieb and Hector Becerra, Los Angeles Times)


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