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RE: Compensation and Benefits DATE: June 2, 2009 "I wanted to take this opportunity, as chair of the Board of Social Services, to address the Board of County Commissioners on behalf of the staff of the Department of Social Services. Our staff remains extremely concerned about the compensation and benefits packages being discussed as part of the fiscal year 2009-10 budget. They recognize that the County is under considerable financial strain and are committed to doing whatever it takes to continue to provide essential services to residents. As such, staff has offered to take on additional duties and reduce costs wherever possible. Given the current state of the economy and the increased workload for staff at Social Services, these proposed cuts are adding to stress and anxiety already acutely felt by employees at the agency. Staff has expressed particular concern about the prospect of shouldering a higher cost of the county health plan. With other types of compensation including 401(k) contributions, longevity and pay also potentially eroding, staff may not be able to maintain their health benefits at higher costs. I respectfully ask that you please consider the net cost to employees of all the budgetary actions, especially the increased burden of health care costs. While staff prefer furloughs to other options that have been outlined for budget reductions, more than three days of mandatory furloughs will be difficult for many staff who are already struggling with their household budgets. This will be a particular hardship for staff making less than $40,000 a year, many of whom are eligible for or are already participating in programs at Social Services. The Social Services board has discussed the ongoing ability to recruit and retain staff in specialized positions and is concerned that as a result of the proposed reductions to employee compensation and benefits this may become increasingly difficult. Orange County has already relied on competitive pay and benefits to attract highly qualified staff. Hopefully the necessary cuts can be managed in a way that maintains the County's image as a good place to work. In closing, I encourage the Board of County Commissioners to exhaust all other potential cost savings before drastically decreasing employee pay and benefits. County employees, like those at Social Services, are the face of county government to thousands of Orange County residents. These employees work hard every day to protect vulnerable children and adults and provide food, health insurance, and crisis intervention to struggling families. It is my sincere hope that the county will find a way to continue to value Orange County employees —the county's most valuable resource — so that they can continue to provide these critical and necessary services. The Social Services Board and agency staff recognize the difficult task set before you and are committed to working with you to achieve the best possible outcome for the county, its staff, and its residents. Thank you for your time and consideration." Paul Spire spoke against the reduction of 401(k) contributions. He said that many lower paid employees are currently working two jobs. Carol Boggs read a prepared statement: To: County Commissioners, Town Manager, et al From: Durham-Orange Genealogical Society Date: 02 June 2009 Subj: The NC Room