Posted by: thepinetree on 03/24/2009 12:28 PM
Updated by: thepinetree on 04/02/2009 06:05 PM
Expires: 01/01/2014 12:00 AM
:
Tough Choices at the County. The County needs to close a structural deficit of $2.1 million ~By John Hamilton Video Enclosed Mia Culpa, Mia Culpa
San Andreas, CA...The county will have some choices to be made soon. Revenue tied to the economy continues to decline. The county is looking at a structural deficit of $2.1 million. The Resource Reduction Strategies will be as follows Personnel Cost Saving Strategies, Mandated/Non-mandated programs and services, Contributions to community organizations, Reductions to General Fund Contributions more...(Oops We Had Wrong Video Link)
Assistant CAO Shirley Ryan did a nice job of laying there options out for the board and stressed that many of the options should be viewed at tools in a toolbox.
Supervisor Tryon suggested that the focus be on the PERS retirement contributions. There could be as much as $2.1 million in savings. This would be painful for all but it would be equally painful for all.
Merita was blunt and refreshing in that she wanted to see recommendations from the departments heads and the CAO's office on what changes they would like to see happen between now and June. She wants to see what can start being done today.
Supervisor Thomas like the approached of the toolbox method but expressed concerns that the numbers may actually be worse if the economy continues to worsen.
Supervisor Wilensky made a suggestion that the county talk directly with local hospitals and health care networks to make things more efficient.
The next step for them will be a closed session to discuss options.
Sheriff Downum was upset that this information was not put out earlier. Mary Sawicki expressed concerns that considerations be made as to what the impacts will be to the entire county and not to just county government. DA Tuttle also said that while the PERS component would be painful but a $2 million deficit is not something you can nickle and dime and that real cuts will be necessary. Howard Stohlman backed DA Tuttle on the PERS contributions. Tracy Busby from the Deputy Sheriff's Association was visibly affected by the PERS suggested and reminded the Board that the PERS contribution was inlue of a COLA or cost of living increase.
The Tool Box is below
Salaries & Benefits are 60% of General Fund Budget. County Unemployment rate is now 13.9% and is the highest since 1993. The county will try and keep layoffs to a minimum. They are looking for fair and equitable solutions including , furloughs, EDD work sharing, Step increase and longevity holds, time banks
Furloughs could save $49.500 per furlough day exclusive of the Sheriff's department and inclusive of the Sheriff's department could save $82,500 per day.
EDD Work Sharing...Help avoid staff reductions or layoffs. 10% reduction in wages and hours. General fund savings could reach $998,000 their are stringent employee reporting requirements. It would be very labor intensive to stay in compliance with. Actual savings with participation could fall far short of estimates.
Step Increases & Longevity Holds could help but it is not an equitable solution.
Time Bank..Would mean that employees would be paid less that the actual number of days worked. The difference would be payed out over time with a the program would have a 5 year ending date.
Salary Reductions Permanent Salaries total almost $29 million a 5% reduction across the board would save almost $1.5 million.
Retirement Incentives would be applicable to just over 100 positions. Cost savings of this haven't been calculated yet.
Health Insurance Contributions...a %50 reductions in the county's contributions could save almost 1.5 Million.
PERS Employee Contributions...This would be an equitable solution.
Workforce Reductions - Layoffs...This would be the last resort.
Mandated/Non-Mandated Programs...Look closely at what programs are actually mandated and
Community Organizations Contributions...$140,000 TOT revenues to Visitors Bureau and $52,000 to other organizations
