Sacramento interim city manager told employees to expect layoffs, union says (2025)

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Sacramento’s Interim City Manager Leyne Milstein has told city employees they should expect layoffs this year, according to the city’s largest labor union.

Stationary Engineers Local 39, a union representing more than 1,700 city workers, alleged this and others claims in a March 20 letter sent to City Council members. The letter said that Milstein told city employees directly “there will be layoffs,” the city “would not consider temporary furloughs or early retirement incentives” and said there were “no plans to reduce management position only rank and file.”

City spokesperson Jennifer Singer said Milstein’s comments were taken “widely out of context.”

Milstein has hosted a series of “brown bag” lunch meetings with staff intended to update workers on the city’s $44 million budget deficit and financial challenges. Her comments at the gatherings, according to union reps and city employees, left workers wondering if they would lose their job in the coming months.

“We find the Interim City Manger’s actions to not only to be extremely callous but also serves to instill fear in the lives of employees,” said the letter authored by two business representatives for the San Francisco-based union.

Singer said the city has notified unions — including management — with employees who have the potential for layoffs, but it is premature to say “if or how many positions may be impacted.” She added that it is not ideal to recommend temporary furloughs or incentivize retirement for senior employees to address the city’s structural deficit.

“No final decisions have been made, and the city remains committed to minimizing direct impacts on employees whenever possible,” Singer said in an email statement on Friday.

Milstein apologized for the “misunderstanding or disruption” she may have caused in an April 1 email in response to the union’s concerns. Milstein said she shared what she views as “substantial financial headwinds” facing the city.

“My communication was not intended to interfere with the negotiation process or to create any undue pressure or confusion for our employees, your membership,” Milstein wrote in the email provided by the union.

Employees have expressed concern that the lower paid classifications will be disproportionately affected, said Payden Martin, one of the representatives who authored the letter. He attended a March 19 lunch meeting after the union heard reports of Milstein’s comments for employees.

“The messaging, at a minimum, is highly concerning,” Martin said. “People are scared right now, and this isn’t helping them feel better.”

Among those concerned from the meetings was a police records division employee who asked to remain anonymous for fear of retaliation. She attended two of the lunch meetings and has since talked to about 10 coworkers, all with the same major takeaway from the meetings: layoffs are coming.

The city resolved last fiscal year’s the budget deficit without layoffs. None of the council members have committed to the same outcome this year.

“It felt like the chopping block was going to come down,” said the police records division employee.

Her hope is the city remains fair in its budget discussions and does not only reduce the lowest paid positions. Last month, the city published a list of reductions strategies that include more than 100 potential layoffs including positions from the Fire Department, park maintenance division and Police Department’s communication center.

“It should be fair to all city employees and not just the people at the top,” she said.

Sacramento Councilmember Mai Vang said the city must ensure it is not balancing the budget “on the backs of the hardworking families who keep our city running,” in a written statement on Friday.

“The mayor and council has final say on budget and labor negotiations, not the city manager,” she wrote.

Mayor Kevin McCarty and the other seven council members declined to comment for this story on the union’s letter or Milstein’s alleged remarks.

Milstein must release a proposed budget for the 2025-26 fiscal year by April 30.

This story was originally published April 7, 2025 at 5:00 AM.