While we all go about our daily affairs there is a little publicized process occurring in Martin County that will have a disproportionately large effect on our taxes for years to come. That process is the labor negotiations between the County and the International Association of Firefighters (IAFF) who represent the firefighters, paramedics and some Emergency Services Department support personnel. A three-year contract was negotiated with the IAFF near the beginning of FY 2001 and a second three-year contract took effect in FY 2004 and expires later this year.  In the six years, since the beginning of the first contract the average gross take home pay, not including benefits, for all those covered by the contract has increased by almost 70%, from $43,200 per year to approximately $75,000 per year, for what can, in reality, be a two day workweek.  Likewise, average benefit costs have increased over 50%.  In fact, 2006 gross take home pay for a contract-covered employee, is estimated to range from a low of $35,000 ($55,000 with benefits) for a new hire, to a high of $155,000 ($200,000 with benefits) for a senior employee. Current negotiations for the next three-year contract are near completion with across the board wage increases projected to be in excess of 10% (5% COLA, 5% step increase plus other miscellaneous benefits) per year for EACH of the next three years.  FICA, insurance and retirement costs will increase in lockstep.

We are told that the Emergency Services Department will have difficulty in recruiting new firefighters/paramedics since, without these increases in wages and benefits, other counties will hire away Martin County firefighter/paramedics and all the qualified new job entrants. While we have a high regard for department management, we question the reality of this assumption, especially for senior employees. If entry wages need to be raised, address that issue, but don’t unrealistically raise wages across the board.  If the Emergency Services Department’s fears are realized, the County can easily deal with that problem when it occurs.

Wages and benefits consume over 87% of the entire Emergency Services Department’s proposed budget, 89% of the Sheriff’s budget and will consume an equivalent portion of the total County operating budget.  Rising costs of supplies, such as gasoline, affect the budget but not nearly as much as personnel cost.  In short, a large percentage of projected budget increases are due to costs that are NOT beyond the Commissions’ control.

Very soon the Commission will be asked to approve the new IAFF contract even though the current one does not expire for several months. We don’t understand the hurry. There is plenty of time to send PROFESSIONAL NEGOTIATORS, County managers and IAFF back to the bargaining table with realistic wage and benefit goals in the range of the current 3% inflation rate.  Ideally they could also “clean up” confusing contract language and restore Managements’ rights that have been eroded in past contract negotiations.

So, why are we so concerned about the IAFF negotiations?  While few County Managers like to admit it, history has shown that the substantial wages and benefits gained by the IAFF in the last few years have lead to inflated wages and benefits for other county workers.  It was the major influence in the Sheriff’s deputy’s vote to unionize last year.  Bottom line:  when personnel costs are almost 90% of County operating budgets and double-digit increases are allowed, how can budgets not go up by double digits each year, as they have for many years?

The Commission has been able to ignore this problem because the rapid increases in the ad valorem tax base have allowed them to hold tax rates on the voters while socking it to non-voting snowbirds, businesses and rental property owners. But, as the Taxpayer Association has been warning, these wanton spending habits will come home to roost. While this year’s tax base on non-homestead properties has probably increased enough to cover 2007 spending increases, this double-digit wage and benefit package will program in unavoidable spending increases far into the future, including the very long term effects of retirement benefits.  The only practical way to pay for it will be to raise ad valorem taxes on the voters – something the current Commissioners should work hard to avoid.