Johnstown City Council Approves Layoffs, Tax Increase

The majority of Johnstown City Council voted to layoff 14 city employees and raise taxes by 24 percent on Friday.

For the second week in the row, council chambers were packed with people, most urging council members to avoid layoffs.

The city's deficit had ballooned to $1.5 million. Some council members said that the massive deficit left them with two options-- have layoffs and increase taxes or file for bankruptcy.

"The ramifications of a bankruptcy are far reaching and have devastating effect for every citizen," said Council member Ann Wilson.

But council members are hoping the layoffs are no permanent.

"I made the decision personally knowing that these people would be back," said Nunzio Johncola.

The layoffs will be effective Jan. 1, 2010.

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