True or False: Contractually required severance liabilities from layoffs may be funded through a special emergency appropriation.

The statement is true because contractually required severance liabilities that arise from layoffs are considered necessary expenditures that municipalities must address. When such costs are deemed unavoidable and are related to contractual obligations, they can be funded through a special emergency appropriation. This type of appropriation allows a municipality to access additional funds outside the standard budget allocation to manage unforeseen financial pressures that arise from contractual commitments, such as severance pay.

Using a special emergency appropriation for these liabilities ensures that the municipality remains compliant with its contractual obligations and maintains its labor relations, which are crucial for workforce stability. It is important to recognize that emergency appropriations typically need to meet specific legal criteria and may require additional oversight or authorization, but when they pertain to contractual obligations such as severance, this approach is a legitimate method of funding in the municipal budget process.