City to layoff employees due to loss of grants, lower sales taxes

The City of Picayune is laying off 19

employees as officials try to deal with the loss of federal grants

and sales tax receipts.

City leaders say they must make the cuts because no additional

grants are coming from the Federal Emergency Management Agency.

Other grants, including those received after Hurricane Katrina

struck in August 2005, are ending. The city is also facing a

post-storm sales tax slump.

City Manger Ed Pinero Junior says none of the nine layoffs in

the police department will involve existing patrol officers or


However, he said, two are in the police academy and the rest

were retired officers employed in records or secretarial positions.

The rest of the layoffs will be in other city departments, with

the exception of the Picayune Fire Department.

Nearly all of the employees being laid off were hired by the

city after Katrina with grant money.