Queen Creek is laying off 14 employees, and the town manager is recommending reducing the workweek for all hourly employees and slashing pay for all salaried employees.

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The measures are part of a third round of budget cuts this fiscal year as Queen Creek continues to suffer from the ailing economy. The layoffs and proposed cuts are expected to save the town $4.6 million.

In a letter to employees, Town Manager John Kross laid out a plan that includes the elimination of 14 positions in the town's development services and support areas, and the elimination of a part-time attorney position and some part-time and seasonal jobs.

The letter also states that 23 frozen vacant positions in the town will be eliminated for the next fiscal year, and the town will reduce use of contract consultants.

Kross also wants to reduce the workweek for hourly employees from 40 hours to 37.5 hours, and make all salaried employees, including the town manager, take a 6.25 percent pay cut. Those steps must be approved by the Town Council, which meets May 21 to consider the measures.

"This does not affect eligibility for benefits, but we are looking at the benefit package because health care costs are going up across the country and we are no different," town spokeswoman Marnie Schubert said. "The hours will not change benefit status."

Kross said layoffs would begin in the next few days, and other proposed measures would take effect July 1.

The plan includes cutting employee cost-of-living increases for fiscal 2008-09 and reducing merit raises from 6percent to 3 percent for "top performers." Additional budget reductions affecting employees include plans to reduce tuition reimbursement and increase health insurance costs.

"These recommendations affect the livelihood of some of our exceptional and hardworking staff and their families," Kross said. "I am deeply, deeply saddened by the need to take these extraordinary steps in order to ensure financial stability for the town in this weakened economy."

Kross is asking the Town Council approve a three-month severance package and six months of health insurance benefits and help to find new employment for employees losing their jobs.

In addition to personnel cuts, Kross is proposing cuts for the Horseshoe Park and Equestrian Centre project, street maintenance, external printing, town cell phone distribution and usage, office supplies, financial support of the Queen Creek Chamber of Commerce, food at town meetings, and computers.

"What is proposed would reduce that service level slightly during this economic cycle," a town news release states. "Some areas, such as parks and trails maintenance, will experience service reductions."

Town officials said public safety levels will not be affected by the cuts.

The town recently cut $5 million from its operating budget and $23.4million from its capital improvement budget to make up for declining revenue because of a regionwide housing market slowdown. Revenue from construction sales tax and building permits has been reduced by about 80 percent.