Agenda - 05-19-2009 - 7b - Laserfiche WebLink

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Employee Pay and Benefits Background Orange County Government is facing a very challenging task in developing a revenue neutral budget for FY 2009-10. As County departments develop strategies to tighten their budgets, County employees will be asked to do the same based on the need to reduce personnel services costs. The major challenge and focus of these reductions will be to prevent reductions in the permanent staff needed to provide services to the residents. The Human Resources staff has sought input from employees relating to the most appropriate options to consider in reducing personnel services costs. These include several meetings with the ERC and its Pay and Benefits Committee and the development of an Employee Survey. While any reductions in pay or benefits will not popular, employees seem to understand in this economy, some reductions are going to be necessary. Many County Government functions serve as a safety net for those residents in the greatest need. This important role is especially challenging during tough economic times. The County employees providing these essential services must be prepared to meet the increased demand with a high level of energy and dedication. In addition, other County employees will need to work hard providing other supportive services, programs, events and facilities residents and visitors to Orange County enjoy on a daily basis. The variety of services offered by the County improves the quality of life for everyone and benefits each individual in a unique way. Orange County employees count, and the Manager's Recommended Budget focuses on maintaining the County's current workforce, which comprises over 850 permanent employees. The recommended budget includes funding for current permanent employees, however it requires all employees forego an increase in or, in some cases, reduce the pay and benefits they have received in previous years. These changes will place additional demands on the County's workforce to achieve cost savings. Meanwhile, continuing to provide a high level of service to the County's residents and customers will challenge our employees. The recommended budget incorporates reductions impacting all employees. This budget also provides voluntary options focusing on providing an incentive for employees eligible for retirement and freezing vacancies, which will put additional pressure on departments' already stretched ability to provide services. Past Pay and Benefits Actions Economic factors have a greater impact on the Manager's recommendation concerning pay and benefits for Orange County employees than at any other time in recent history. In FY 2008-09 the recommended budget included: