Layoffs in Galveston city worker's futures?

Some city workers in Galveston could also be out of a job. The city has been dealing with money problems since Hurricane Ike.

City leaders say a nearly $2 million deficit is creating a cash flow problem. That could quadruple by the end of the fiscal year. Lower sales and property tax revenue plus decreases in other city revenues are putting the city in the red.

The city qualifies for federal reimbursement, but getting the money means a lengthy grant writing process, plus spending money the city doesn't have. Waiting for a reimbursement from the government could take months so layoffs are a possibility.

"It's going to kind of be a nip and tuck situation where cash flowing in and cash flowing out whether or not we are going to be able to sustain this without doing any kind of layoffs," said city manager Steve LeBlanc.

LeBlanc says if there are layoffs, he expects them to happen later rather than sooner.

Meanwhile, to save money the city has implemented a hiring freeze and cut spending on items like the city Christmas party.