Friday, June 19, 2009

Editorial: County should consider pay cuts, furloughs

Editorial: County should consider pay cuts, furloughs



Staff
Publication Date: 06/14/09

As St. Johns County Administrator Michael Wanchick makes the rounds giving taxpayers an inside look at the state-of-the-county finances, he's asking their help deciding how to spend future tax dollars.

Do residents want to pay more in taxes or cut services? He says he is not advocating one position or the other. But, with a projected $55 million property tax revenue shortfall over two years, the projected deficits are: $20 million in Fiscal Year 2010 and $35 million Fiscal Year 2011. This year's total county budget is $654 million. For 2010, it is projected at $623 million and for 2011, $577 million.

The shortfall has resulted from a decline in property tax revenues because of decreased property values. Wanchick says the county is reducing expenses, including not giving raises and not filling vacant positions unless he personally approves them.

The choices he's giving taxpayers are all too familiar in public sector budgeting.

But, in our view, they are not enough.

We in the private sector have already taken many more steps than the county has, including salary cuts, furloughs and shortened work weeks. None are desirable to employers or employees.

Now we are being asked to pay more taxes if we want the same level of services.

In St. Johns County, for example, the county's general budget covers 1,638 employees. Not included are those whose departments have separate funding outside of property tax; county utilities, solid waste and special revenue funds.

A 5 percent cut in county government's overall salary budget of $78 million would equal $3.9 million annually. That's a good-sized savings. In some cases, private sector companies have decided it's better to keep valued employees working for less pay than lay off 5 percent of its work force.

County Commissioners and Wanchick say they are running the county like a business.

They're doing a good job in some regards like re-bidding contracts that haven't been re-bid in maybe 10 years. But they, along with the constitutional officers, are not doing all they can unless they seriously consider pay cuts, furloughs, and four-day work weeks.

Tax increases and cuts in services should be the last, not first, options on the table.

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