Will There Be Layoffs in Hoboken?

, members of the council minority said they don't believe lay offs are in the cards.

Business Administrator Arch Liston on Tuesday night said that the city will be $1.4 million short in next year's budget, because of a $4.5 million payment after the bond on the municipal garage

On Tuesday night, the council majority voted to put the $4.5 million it now has to pay in an escrow account. Of that amount, $3.1 million comes out of the parking utility budget, Liston said. The other $1.4 million has to come out of next year's budget. This $1.4 million gap is the reason for potential lay offs.

The $3.1 million in the budget, Liston said, was moved to another line item in August, to pay for defeasing of bonds.

The two percent cap, instituted by Gov. Chris Christie, may present the city with issues, because it can't raise the tax cap with more than 2 percent, Liston said.

He added also that he can't predict yet what will happen with next year's budget.

If there are lay offs in the city, Liston said, they won't happen before Jan. 1, 2012.

City directors have to submit their budgets and their plans to the mayor in the coming weeks, said spokesman Juan Melli.