Milpitas City Council voted 4-1 to approve the 2012-13 budget on Tuesday night, laying off dozens and outsourcing many jobs now done by the Public Works Department.
Councilman Armando Gomez voted against the budget.
The decision followed an outside protest by Public Works employees, which included an inflatable rat next to a sign with city manager Tom Williams' name on it.
Supporters say the cuts were a difficult but necessary choice after the state eliminated redevelopment agencies. Milpitas' Redevelopment Agency contributed about $2 million each year to city coffers.
This story will be updated.
