City of Cedar Rapids to Cut Jobs to Address Budget Shortfall

The city of Cedar Rapids has announced layoffs caused by property tax changes approved by the Iowa Legislature.

Cedar Rapids Announces Layoffs

The Corridor Business Journal reports that the city of Cedar Rapids will be cutting 25 positions by early next year. The layoffs are due to changes by the Iowa Legislature in the state's property tax laws that will result in a $13.4 million city budget shortfall in the next fiscal year. The cuts, along with a policy that will prevent affected employees from bumping or displacing less senior workers, were approved by the city council on November 3rd, according to the CBJ. 

What City Jobs Will Be Cut?

The CBJ reports that the job cuts will include;

• Layoff of six general fund employees, who will be notified privately this week.
• 16 currently vacant positions, which will remain unfilled for the foreseeable future.
• One layoff in the city's parking division.
• Reduced hours in various city departments, totaling 1.82 full-time positions.

The cuts are expected to be completed by mid-January.

Police and Fire Departments Will Not Be Affected

City Manager Jeff Pomeranz told the CBJ that Cedar Rapids police and fire personnel will not be affected by the cuts, nor will any employees providing 'core services.'

Pomeranz stated that if the city did nothing to address the shortfall, it would widen in the coming years. The CBJ reports that by 2032, the city would lose $35 million annually. Statewide, the losses for local governments are projected to be over $317 million for fiscal year 2028 and $441 million by 2031.

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