By Henry J. Gomez, The Plain Dealer

November 30, 2009, 6:40PM

Mark Puente and Laura Johnston contributed reporting to this story

CLEVELAND, Ohio — Mayor Frank Jackson, hoping to piece together a 2010 budget that will not include layoffs or service cuts, said Monday that he wants city employees to take unpaid furlough days and give up longevity perks.

The moves, combined with a monthly fee that Jackson has asked City Council to approve for home garbage collection, should erase a $23 million shortfall expected next year.

If organized laborers and council members sign off on the two-pronged plan, “I am 95 percent sure that we will not have to lay people off,” the mayor said in a City Hall interview.

Jackson stopped short of offering a guarantee because of the chance that economic conditions could worsen.

As a last resort, he also wants permission to move employees to departments such as water or the airport that are not supported by tax dollars.

“The primary purpose,” Jackson said of his proposal, “is to keep people employed.”

Preserving jobs is critical to maintaining service levels, city Finance Director Sharon Dumas told council members at a briefing. For every $1 million of shortfall not erased through other means, 20 city laborers or 12 police or firefighters would have to be laid off, Dumas said.

The city is required by law to balance the budget. Dumas said the city will end 2009 with $4 million, a sum that when added to her $499 million revenue estimate for 2010 leaves a budget gap of $22.9 million. Dumas had earlier forecast a shortfall of up to $50 million.

Her latest projection factors in proceeds from property sales and the draining of most of the city’s $8 million rainy-day fund. Dumas said $7.5 million will be taken from the reserve.

Jackson stressed that his concession preferences do not constitute a “take it or leave it” offer. Members of each union representing city workers will be told how much of the projected deficit they are expected to erase. Suggestions for alternatives will be considered, Jackson said.

But, the mayor, added, “I am looking for this to happen by the end of the year.”

Employees citywide, including non-union workers, would take 10 unpaid furlough days under Jackson’s plan. The cost-saving option is one that has become common in the public and private sectors. Cuyahoga County employees are using furloughs to solve budget problems.

Longevity pay is an annual payment that city employees receive after a certain number of years on the job. For example, patrol officers receive $300 a year after five years of employment. The payout increases every five years to a maximum of $800 after 25 years.

The furloughs and suspension of longevity pay would be temporary, for 2010, officials said. The sacrifices would save an estimated $12 million. The $9.25 monthly garbage fee, which council members are expected to vote on next week, is expected to chip in up to $11 million.

Heads of three unions representing safety employees — the largest batch of city workers — said Monday that they had yet to hear how much the mayor wants each group to save.

Steve Loomis, head of the police patrolmen’s union, said he appreciated that Jackson asked for suggestions and reached out to the union because other mayors did not when faced with cuts. But Loomis said he needs more details before members decide what they are willing to accept.

Stephen Palek, head of the EMS union, said he will proceed cautiously and wants to make sure city officials are doing everything possible to generate revenue. He said that a recent report that Jackson requested from financial consultants shows alternatives worth exploring.

“There are a lot of things that can be done before they come to us for concessions,” Palek said. “It’s a two-way street. All hands on deck. We need to get to work.”