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People voluntarily retiring early will save the County an estimated $2.3 million this fiscal year and another $18 million over the next two fiscal years, according to a staff report being presented to the Board of Supervisors on Feb. 2.
The report shows a total of 69 people, or 45 percent of the 156 eligible employees, participated in the Early Retirement Incentive program that offered an extra two years service credit if they retired by Dec. 23, 2009. The projected impact on the County's General Fund will be a savings of about $1 million for the remainder of this fiscal year and $4.9 million in each of the next two fiscal years.
"Our efforts have not been about balancing this year’s budget; it is balanced. We have been setting the groundwork for a balanced budget next year and for the years to follow," said County Administrator Michael D. Johnson.
The early retirements reflect one of many cost-cutting measures the County made in 2009 to shrink an $18.9 million General Fund structural deficit and better position the County financially for the future. If ongoing spending was left unchecked, the County’s projected structural deficit would grow to $37.4 million in FY2010/11 and would be operating in the red by FY2011/12.
The operational impacts of those decisions over the last six months were discussed at a special Board meeting on Jan. 19, the first of three meetings designed to present information needed to establish program priorities and define the expectations of what services the County will provide in the future.
“Everyone knows that it isn’t business as usual anymore. Long-term drops in local property taxes and what we hope are short-term losses in sales taxes and interest income mean we must redefine 'normal’ when it comes to the business of County government,” Johnson said.
The first meeting presented the current capabilities of an organization that is over 15 percent smaller than it was just a year ago. The County also reduced several programs and services in 2009. The fiscal impact of those decisions will be discussed at the Feb. 9 Board meeting.
The Board, with the understanding of the operational and fiscal impacts of decisions to date, will discuss its priorities moving forward on Feb. 23. The meeting is part of an ongoing dialogue with the Board that will guide departments in the development of budgets for the coming fiscal year.
Posted: Jan. 28, 2010
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