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The Legislature’s budget committee is recommending the County offer a special one-time local retirement incentive to eligible employees, seeking to minimize involuntary reductions in force in 2011.  The one-time local incentive, recommended by the County’s Departments of Personnel and Administration and recommended by the committee in a 4-1 vote, would be tied to the cost of retiree health care. It would allow employees who retire and vacate their positions between September 15, 2010 and March 31, 2011 to receive County health benefits for 24 months after retirement at the employee rate of 20% of premium, instead of the retiree contribution of 50% of premium for those who elect individual coverage and at a higher percentage those with family coverage.

“As part of the 2011 budget, we expect to be looking at reductions in force, “County Administrator Joe Mareane told the committee, saying that the one-time incentive would be focused toward reducing the roster by accelerating the process of natural attrition.  While it is not possible to estimate the number of employees who would choose retirement because of the incentive, Mareane said he expects it could produce overall savings to the County and reduce the need for involuntary layoffs.  While the incentive over 24 months would cost the County more than $4,000 for each retiree who selects individual coverage and nearly $12,000 for each retiree electing family coverage, if retirement avoids the layoff of another County employee, the County would save a minimum of $10,400 in unemployment benefits, as well as one year of employee health insurance cost (at the employee contribution rate) for each laid-off employee.

Legislator Brian Robison, who dissented in the vote, questioned whether the local incentive would prompt any employee to retire who hadn’t already planned to retire anyway.  Mareane reported that most department heads have told him they believe the incentive can be effective, offering greater flexibility in the way they respond to budget challenges and to how their operations are organized.

Among other actions, the committee, by unanimous vote, joined the Planning committee in recommending authorization of a senior planner position in the Planning Department, funded solely be County room tax dollars, to support the county’s Strategic Tourism Planning Board and coordinate the County’s tourism activities, at an expense of $25,000 for 2010, the initiative to be evaluated after a two-year trial.  The committee, after thoughtful discussion, joined the Government Operations Committee in recommending a change in salary for the position of Executive Assistant to the County Administrator, a position that for the prior incumbent had been rated at above the standard salary scale.  Legislator Kathy Luz Herrera dissented in the 4-1 recommendation vote, one of several legislators who voiced concern that the Administrator’s appointment to fill the at-will position failed to follow proper procedure related to hiring and transparency.

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