Many city and county governments already stretched thin by budget woes are starting to reduce the hours of their part-time workers ahead of the implementation of the Affordable Care Act's employer mandate. "It's not something we prefer to do, but the cost of health insurance is significant and would really impact municipal budgets," said Anthony Mercantante, administrator of Middletown Township, N.J., which will avoid $775,000 in costs by cutting the hours of 25 part-time employees.

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