On the final day of the fiscal year, Maywood, California laid off all of its staff (96 employees) and is now outsourcing all city duties to contractors. The city, with roughly 30,000 residents and about 8 miles from downtown Los Angeles, is keeping its elected officials and some of the former employees will remain on the job as contractors.
From the story:
Maywood is billing itself as the first American city to outsource all of its city services. In an odd twist, officials say it can provide even better services because the shift will help it save money and close a $450,000 shortfall in its $10 million general fund budget.
This bears watching as many municipalities face budget shortfalls. While the cost savings speak for themselves, it remains to be seen how residents feel.