Facing $164 Million of Red Ink, Mesa, Arizona Give 1,600 Employees a 5% Pay Raise

For its fiscal year 2009/2010, the City of Mesa, Arizona, expects to spend $408.6 million and collect $245 million in revenue, which is a deficit of $164.6 million.  Mesa’s left hand announced that all 3,400 employees would take a 2 percent pay cut just after Mesa’s right hand gave 1,600 employees a 5 percent pay increase that cost the insolvent city $2,500,000 it does not have.