Chattanooga Pulse

Written by Pulse Staff
Tuesday, 30 December 2008 21:07
Layoffs And Pay Cuts At UTC
Facing a 20 percent budget cut and possible layoffs at the local university, Chancellor Roger Brown announced that he would personally take a five percent cut in salary, following the lead set by University of Tennessee President John Peterson, who not only took the same pay cut but urged all executives within the university system to do so.

In addition, Brown will be giving up his work vehicle, a Chevrolet Impala. Combined with his pay reduction, it will save the university more than $23,000. While that may not seem like a lot when faced with a multi-million dollar budget deficit, the symbolism speaks volumes, especially in a time when executive pay and perks has become such a major issue nationwide.

As for the potential layoffs, Brown was direct in addressing the underlying issues. “When 80 percent of our budget is in payroll and benefits, reaching 20 percent cuts will be difficult without a reduction in personnel,” he wrote in an e-mail to university staff.

“We are facing the very real potential of a reduction in force, and we will be required to look at every program and office for efficiencies. No doubt, we will have to change the way we do some things on this campus.”

Wimpies Wins In Soddy-Daisy

In a move that surprised many, the Soddy-Daisy city commission agreed to pay the owner of the popular Wimpies Country Restaurant $1,835 for lost revenue due to the city’s public works department accidentally cutting a gas line in front of the eatery, causing it to close for an entire day. Co-owner David Smith told the commission that he not only lost money because he was forced to close, but that his employees lost tips and wages right before Christmas.

“I personally think he needs to be compensated,” said Shane Harmon, the newest member of the commission. “I feel like we did it. I feel like we’re responsible. I’m not pointing a finger at anybody and saying it’s anybody’s fault, but if you’re digging, you’re going to tear something out today.”

Opposed to the payout was city attorney Sam Elliott who, while he empathized with Smith and his employees, noted that according to the law, the city was not responsible for such mistakes when it involves the city’s right of way. He suggested that instead of offering an immediate payout, the city should contact its insurance carrier to see what its viewpoint was on the matter.

However, the rest of the commission went along with Harmon and approved the payout, citing the Smith family’s long presence in the community and indicating that when all was said and done, it was the “right thing to do.”

The city should pay the Smiths, said commissioners, because they doubted anyone else would accept blame for the incident, in spite of concerns the decision might possibly set a precedent that could cost the city more money down the road.