YOUNGSTOWN, Ohio - The city of Youngstown is looking at the possibility of layoffs with a budgeted shortfall of $4 million. It's all because of Covid-19 and its dramatic impact on income tax collections.

Youngstown Finance Director Kyle Miasek made the announcement via Zoom to the city council's finance committee Monday morning.

"We are going to struggle going forward," he said.

Miasek said the city is 7% behind on income tax collections after the first 6 months, 3.5% off budget.

"What has really got me concerned, our three largest employers are all directly impacted," Miasek said.

Those three employers are Vallourec, YSU and St. E's. In all, Miasek says the city is staring down a shortfall of $4 million.

"It's going to be a large obstacle ahead of us to close that gap," he said.

How they close that gap is now the ultimate question. Miasek says if the Cares Act is extended, they could ask furloughed workers to stay on furlough. When asked if layoffs were a possibility, he said that will certainly be discussed.

It all depends on if federal subsidies are going to be in place. If federal subsidies are not going to be in place, we are going to have to address that particular topic," Miasek said.

The water fund was also discussed and the fact that people don't have to pay their water bills if financially impacted by Covid-19. Miasek says most people that were 90 days late are now paid in full. He says there is a much larger group that are 30-60 days behind.

In July, the city will be able to start shutting off the water on delinquent accounts and will be mailing postcards to warn residents. He hopes that will help collect more bills.