Quick Notes – SCEA July 22, 2010

Due to schedules and workload it was necessary to cancel the last Site Representative meeting so the following is being provided to help keep the leadership and members informed of developments.

Staff attended the County budget hearings to monitor projected revenues and proposed expenditures for the next fiscal year. Unfortunately, the revenue projections continue to look dismal and the meager recovery has been attributed to short term infusion of stimulus federal funds and other limited growth in revenue. The basic ongoing General Fund revenue sources of sales taxes and property taxes continue to be either stagnant or declining. The Board of Supervisors (BOS) took a very conservative posture while realizing that the County needs to continue to function and carry on the business of the County.

It became clear that the BOS remain concerned about the County’s finances and that the BOS is committed to using the County’s reserves to maintain operations without cutting staffing levels. It was also clear that a major assumption that the BOS was making related to this year’s budget was that employees would again defer the scheduled salary increases. Additionally, the BOS made it clear by their comments that they wish to seek changes to the pension plans, including to have employees pay all or a portion of the employee’s CalPERS contribution.

The County’s preliminary budget has been approved, but it is contingent upon the SCEA members and the Deputy Sheriffs Association (DSA) not taking their salary increases this year. The budget also assumes that the County will spend down about $4 million of reserves (which is the amount that the County is expecting to spend per year to offset the loss of revenues associated with sales and property taxes).

As publicized in the Appeal Democrat there was an error made in the allocation of sales tax revenue that required a repayment of $1.7 million (plus interest). This error also required an adjustment to the County’s projected income for the current fiscal year and next. This error is the primary reason prompting the County to seek further deferral of the negotiated salary increases. It was indicated that if the increases are not deferred that it will be necessary to make staff reductions to keep the budget balanced.

The SCEA Committee appointed by President Kurt Schoenwald has been meeting with the County to discuss the County’s financial position and possible ways that employees might be able to assist. SCEA has not opened our contract and will not make any changes without the membership’s approval. The Committee has communicated the position of the SCEA Board that the County needs to come to the table and be specific about what they are asking us to do and what they are willing to do in exchange for any concessions they are asking for. SCEA is also working to coordinate meetings between the DSA, Professional Fire Fighters’ Association, and us to discuss how we can work together during these challenging times. We will be holding meetings soon to brief the membership more specifically on developments, please make an effort to attend.