In Your Corner

According to recent media coverage the US economy MAY have begun to recover. The stock market has made phenomenal gains from the 2008 lows. Reports indicate local capital projects are coming in at millions of dollars under budget. We are extremely happy with all of these developments, but want to add a word of caution. Good news, especially premature good news, could cause our elected officials to return to previous spending habits.

We already hear rumors of efforts to spend the millions saved on projects such as the Green River Parkway. The County’s proposed 2010 budget raises property tax millage over 8 percent and begins to rely on “assessments” and “fees” (read “new taxes”) to provide essential services – while politically “hiding” the cost. This is all being done while the official forecast is for high unemployment and a continued drop in local property values and tax revenues. In short, most of Martin County’s governments have still not correctly responded to the weakened local economy. Yes, they have had layoffs, shortened workweeks, postponed buying equipment and some unions have “voluntarily” given up raises.

The problem not addressed is the TOTAL personnel cost that consumes 85% to 97% of all the operational budgets we have examined. Pay is not necessarily the issue, although there are some excessive salaries not mirrored in the private sector. However, the really expensive excesses are hidden in benefit packages that dwarf anything available in the local private sector. These include generous retirement plans, overtime pay for management personnel, individual and family health coverage, automatic longevity pay increases, and paid vacation, personal and sick days.

These retirement programs are extremely expensive and can even include items such as lifetime cost-of-living increases and family health coverage. This is particularly true for jobs considered “hazardous duty” such as Sheriff, Police and Fireman. Currently Florida’s civil service jobs designated “Hazardous Duty” allows retirement at 25 years service with 75% (90% at 30 years) of their highest 5 years pay (including overtime and other pay enhancements) and full family benefits. Combined with work rules that invite overtime in their final years with high terminal salaries and these costs are becoming unsustainable. The HD retirement program is controlled at the State level, but counties can limit the numbers covered. For example, Martin County was the first and may still be the only County that requires lifeguards to be fully qualified EMS paramedics, which automatically provides hazardous-duty retirement.

Some higher health plan co-pays have been instituted, but there are additional modifications there that would not greatly affect employees. There is justification for allowing vacation days to be saved for a limited period, but personal and sick days should be used when necessary, not accumulated and/or turned into cash. For example, the School District’s liability for “paid leave” is currently some $15 million. Our first cursory look at the County’s 900 person banked time account shows over 53,000 hours (1,337 work weeks – nearly 26 years) for just the top 30 (of 300) Fire/Rescue personnel.

In summary, we want to see a reduction in personnel costs, not increased taxes, fees or assessments. While some layoffs may be necessary or even desirable, a better idea is to preserve the good employees required to provide needed services by reducing excessive benefits and automatic raises. This will not be easy, but unless accomplished now the system will undoubtedly refill the cut positions with the same unjustified policies. We believe all government employees should receive a salary commensurate with their job and responsibilities - AND COMPARABLE WITH LOCAL CIVILIAN POSITIONS – INCLUDING THEIR BENEFIT PACKAGES.