Raises during county's fiscal emergency headed for a change
| Wednesday, Apr 28 2010 06:42 PM
Last Updated Wednesday, Apr 28 2010 06:45 PM
Even after county supervisors voted in January to clamp down on hiring -- Kern County is having a fiscal emergency, after all -- department heads promoted 140 employees and racked up more than $1 million worth of raises by mid-April.
The promotions were only recently discovered by top county administrators, who did not greet the matter with open arms.
"It has become evident that departments have been routinely promoting...knowing full well the tremendous budget constraints that the county is operating under," wrote John Nilon, county administrative officer, in a report to supervisors.
Supervisors moved Tuesday to include promotions in the hiring restriction program they OK'd in January. The program requires approval from Nilon's office before departments hire, or now promote, workers. The process includes justifying the extra expense.
Some departments, such as fire and sheriff, have military-style command structures that necessitate promotions.
Next week, the board will learn from county lawyers whether it can vote to reverse some or all of the promotions made after January's hiring restrictions were put in place. At least one supervisor, Ray Watson, said Wednesday he probably would not support rolling back promotions already granted.
While the $1.1 million in raises might seem paltry compared to the county's nearly $1.5 billion regular budget this fiscal year, the promotions were made during dire financial times.
Department heads need to cut $55 million in general fund spending before the new budget year starts July 1. They already cut the general fund by $100 million to make ends meet in the current fiscal year.
Major layoffs are a real possibility this budget season, leaders say.
It wasn't immediately clear Wednesday whether restricting promotions would require a courtesy meeting with employee unions or more formal action. The issue will likely need a legal opinion from county lawyers, Nilon said.
At least one union official did not take well to the new rule.
The promotions in question were designed to save the county labor costs by having employees hired below wage rates with the commitment they'd later be promoted without having to go through additional testing or interviews, said Chuck Waide, director of SEIU Local 521. Such so-called "flex" promotions only require department head approval.
"To eliminate the flex position promotions would be withdrawing a condition of employment," Waide said. "That is the same as an employer breaking their word or violating an employment contract."
The union represents about 6,400 blue- and white-collar county workers.
Susan Wells, the county's employee relations officer, said she thinks the new restrictions were made on solid ground because of the county's fiscal emergency status.
Nilon said he didn't think any of the promotions were made maliciously or that department heads were trying to skirt rules.
Rather, the situation was more a result of doing business as usual.
Kern County's dire budget situation now demands a "white-hot spotlight" be focused on all spending, he said.
While no one is accused of wrongdoing, one department head offered insight into the matter in an e-mail sent to Nilon and supervisors before Tuesday's board meeting.
Pat Cheadle, who heads the Human Services Department, said in the e-mail she had assumed the flex promotions were a union issue that required a meeting with labor representatives to change.
"Speaking for Human Services, we have always operated under the assumption that the employee is entitled to their flex promotion as long as they were meeting performance outcomes for their job classification," wrote Cheadle, who could not be reached by telephone late Wednesday.
Also next week, supervisors will vote on whether to freeze pay for department heads. With numerous staff changes of late, there are many new department chiefs who would normally expect regular raises and cost-of-living increases, Nilon said.
"We simply cannot do business as we have," said Supervisor Mike Maggard.