Financial crisis: understand why city hall in TO dismissed almost 200 employees

The City of Palmeirante, in the north of Tocantins, dismissed 197 commissioned and temporary employees, justifying the measure by the need to adapt public accounts. With the cut in employees, the mayor admitted that essential services and public areas could be left unattended.

The exemptions were justified by the drop in revenue, the increase in current expenses and the need to comply with the limits of the Fiscal Responsibility Law (LRF).

The Executive also attributed the decision to the fact that the City Council did not vote on requests for additional supplementary credits for the municipal budget.

Check out what is known about the mass dismissal of Palmeirante employees:

Why did City Hall decide to dismiss almost 200 employees?

The decree published by the municipality highlights that management needed to adopt immediate cuts to not exceed the ceiling of 54% of Net Current Revenue set by the LRF for personnel expenses.

In addition to budget adequacy, the mayor, Raimundo Brandão, pointed out as a decisive factor the lack of voting on requests for additional additional credits sent to the Legislature.

According to Brandão, without the release of resources by the Chamber, dismissals of contractors and commission employees became the only way to avoid tax punishments.

What does the Chamber say about the crisis and requests for additional credit?

In an official note, the Palmeirante City Council stated that the central reason for the dismissals was the Executive exceeding the personnel spending limit, as admitted in the text of the decree itself. The Legislature pointed out that, with the LRF ceiling exceeded, a budget supplement authorization could not, by law, be allocated to the payroll.

The councilors explained that the Executive requested an increase in the supplementation limit from 30% to 70% in a generic way, without proving the deficit budget allocations and without indicating the source of the financial resources.

What are the positions with the highest number of dismissals?

The Official Gazette of the Municipality shows a concentration of cuts in operational, surveillance and pedagogical support functions. The position most affected was that of general services assistant, which saw 21 employees dismissed, followed by the positions of security guard and night watchman, with 17 employees dismissed, and child development assistant, with 15 dismissals.

Will education and health be impacted?

Municipal public education was the sector most impacted in terms of student support. In addition to daycare and support assistants for students with disabilities, the list includes the dismissal of school monitors (8), school secretaries (4) and lunch ladies (3), affecting the structure of teaching units.

In the health area, the cut covered direct care professionals, such as nursing technicians (4), nurses (2), dentists (2), pharmacy assistants (2) and directors of Basic Health Units (UBS).

The layoffs also affected teams of street cleaners and janitors (11), forest brigades (7), drivers (7) and top administrative positions, including superintendents, district directors and executive secretaries.

Are there areas that will be left unattended?

Mayor Raimundo Brandão confirmed to g1 that the employees' departure will have an impact on service to the population, declaring that "some areas may be left unattended."

However, the manager did not detail which secretariats or basic units will have their activities temporarily suspended or reduced while public accounts undergo adjustments.

How did the financial sector influence the dismissal of these employees?

The Fiscal Responsibility Law determines that mayors adopt measures to adjust public accounts when personnel expenses exceed legal limits. The public manager who ends the fiscal year with personnel expenses above the legal limits is subject to the sanctions provided for in the legislation and the applicable control measures.