In our last column we outlined the financial difficulties we anticipate Martin County’s governments will experience, assuming passage of the property tax reform amendment next year. Unfortunately, limitations beyond our control prevented us from printing the complete article. (See our previous column intact at http://www.mctaxpayers.org/) Our edited conclusion to that column follows:

SO WHAT TO DO? There is only one answer, the same one you would use if your family’s income dropped precipitously – cut your spending. Unfortunately, there are few places to cut costs without cutting personnel and, most likely, levels of service. This is because salaries and benefits account for approximately 85 % of Administration, 87% of Schools, 89% of Sheriff, and as much as 93% of EMS’s operational budgets. This is largely the result of automatic yearly “longevity” pay increases plus inordinately generous raises and benefits packages enacted by our Commissioners during years of plenty. These budget-busting actions were put in place over many years and are now going to be very difficult to rectify since they have become ingrained in the County’s government culture and, more importantly, union contracts.

The County Administrator has led an unpopular, but relatively effective effort to trim the 2008 budget to State mandated levels, while adhering to current and ingrained Commission guidance, maintaining necessary services and preserving jobs. Meeting these conflicting requirements will be even harder going forward and require major changes in County policies. We hope all our elected officials will embrace and help these efforts to improve efficiency and cut costs.

TO CONTINUE:

Since that column two weeks ago we have seen a number of negative articles about the salaries of the County’s top management and criticism leveled at specific cost cutting by the County Administration. Our research shows that the top ten County administrators/managers highlighted in these discussions have salaries that range from $124,208 to the Administrator’s $147,250. We certainly have no problem with evaluating top management’s salaries and benefits, but their salaries are almost an aside to solving the main problems with the County’s personnel costs. In any case, it is not apparent to us that these salaries are extraordinarily high when the required education, experience, and expected work ethic are considered.

However, not all highly compensated County employees fit this category. After top management there are at least another 20 individuals with salaries from $100,800 to $136,600 and a full dozen of these are managing the other 275 or so individuals in the Fire/EMS Department. These 12 Commanders and Chiefs also receive extra perks and allowances, and most are still eligible for, and receive, additional overtime pay. They rate a special “hazardous duty” retirement after 25 years at 75% (up to 90% at 30 years) of their highest five-year average compensation, including overtime, and full benefits. Although current figures are not available, even conservative escalation of known 2004/5 figures lead us to believe there are a significant number of County workers whose gross pay (salary/overtime/allowances) exceeds $100,000 per year

It seems obvious that the main things throwing the system out of kilter are inordinately high total compensation of many middle level positions and the benefits/perks awarded to virtually all County employees, including top earners. Where else in Martin County can you get as much as an extra four week’s pay every year “selling” unused personal time and sick leave? Where else can you get an automatic 5% pay increase every year plus expect a cost of living raise and step promotions? Where else do personnel with salaries over $100,000 a year routinely get overtime pay, longevity pay and educational allowances, plus exceptional health and retirement benefits? We appreciate the skill and dedication of the County Staff, but where is there another employer in Martin County that can afford to have personnel policies anything like these?

The answer is nowhere. The largest totally private employer in Martin County is Publix, followed by Armellini Express Lines, WalMart, Home Depot, Winn-Dixie and Lowes. Even with our exceptionally large number of wealthy residents and retirees the average income in Martin County is only about $44,000 and has been essentially stagnant since 2002. The bottom line: To maintain necessary services the County’s operating costs must be brought under control. The only effective solutions to controlling those costs are major changes to the County’s personnel compensation policies and professional negotiation of union contracts. These will be difficult to accomplish and the Administration needs thoughtful direction and support from our elected leaders – not political posturing.