Massive county layoffs likely, chief exec says

Riverside Press-Enterprise

January 12, 2010

By DUG BEGLEY

Hundreds of Riverside County workers could be laid off or offered early retirement within the next two years as officials struggle to close an estimated $71 million budget gap, county leaders said.

The county's Board of Supervisors took the first step Tuesday by offering early retirement deals to 78 court employees. Human resources staff estimated only 33 would take the deal, but that would still save the county up to $2 million per year.

The county faces a cash shortfall that will require "massive layoffs in the next couple years," whether they are through retirements or pink slips, said County Administrator Bill Luna.

And the county cannot depend on the state, which is facing its own financial crisis, supervisors said.

Supervisor John Tavaglione asked the county's human resources department to come back Jan. 26 with a report detailing how much could be saved if the county offered early retirements to workers in other county departments.

Officials lamented having to be faced with the choice, noting layoffs would severely impact services, and early retirements would send experienced employees out the door.

Any early retirement offered would be open to employees age 50 and older who have five years of contributions to CalPers, the state's public employee retirement system. Once supervisors approve the plan, workers would have a 90-day window to apply for early retirement and receive credit for two extra years of county service.

For court employees, the sign-up period starts Feb. 1 and ends May 1.

Certain employees, such as workers in public safety and at county medical facilities, might be excluded from future retirement deals because their jobs would be deemed critical, officials said.

"Before we take some steps, we need to know what it would do to our ability to operate jails and serve the unincorporated areas and the courts," Luna said.

Ten Percent Cut

Officials have said they want to slash spending from the county's general fund by 10 percent in fiscal 2010-11, county spokesman Ray Smith said. Money in the general fund comes from property taxes and other sources.

Supervisors will look for cost savings where they can, and each department likely will face different cuts, based on where officials are willing to scale back.

"If we can see significant savings in some areas, that would offset the potential need for layoffs," Smith said.

County officials will have updated figures Jan. 26 when the supervisors are briefed on the potential early retirement savings. But Smith said county officials are bracing for the potential of cutting hundreds of jobs in fiscal 2010-11 and shedding hundreds more in 2011-12.

"That should be a last resort," said Kevin Luke, a supervisor in the county's Child Protective Services office and a member of the Service Employees International Union.

Luke, a member of the union's negotiating team with the county, said other savings should be considered first.

"What it will do is impact services to the community," he said of job cuts.

Union officials are also encouraging county officials to consider cost savings suggested last year, such as shutting down computers in all county offices after hours. The union estimates turning off electronics could save the county $1.6 million.

Combined with other cost-saving cuts, Luke said he believes the county can avoid many job losses.

The county faced the same situation last year, when it sought concessions from labor groups that represent various county employees. Some concessions were made, and combined with some job losses through retirements and savings from various county agencies, officials cobbled together a budget.

Many options, hurdles

Most cuts come with costs, either in limiting county service or forcing the county to contribute more into state pension funds in the short-term.

Supervisors Jeff Stone and Bob Buster both said they are concerned the early retirements would increase the county's pension costs. Both also questioned whether the county later would have to hire people to fill the vacant positions.

Buster said the retirements could also lead the county to lose some of its most experienced workers. The county would have more control if it imposed layoffs, he said.

"As hard as that is to stomach, I think it might be the right thing," Buster said.

Riverside County isn't alone in bracing for tough budget discussions. San Bernardino County began offering early retirement and put into place a hiring freeze last year, managing to avoid layoffs. With a $90 million budget shortfall looming for the next fiscal year, more belt-tightening is expected.