By Jessie Burchette
Salisbury Post
County commissioners focused on county employees Wednesday afternoon, deciding against any cuts in benefits.
In a non-binding straw vote, commissioners agreed to give county employees the full 4.1 percent cost-of-living increase recommended in the budget. That will cost $1.2 million for the 750 employees.
Chairman Arnold Chamberlain, Vice Chairman Chad Mitchell and Commissioner Jon Barber rejected plans that would have reduced the cost of living increase to 2.5 percent and used part of the remaining money for longevity bonuses.
Commissioners Jim Sides and Tina Hall wanted to reduce the overall cost, suggesting a part of the $1.2 million be used to deal with “compression” issues. That refers to a clumping together of many of the employees in the lower salary ranges, without any method to move them upward on the salary scale.
Officials blame the compression issue for increasing loss of employees and the difficulty in competing with neighboring counties.
Although the county has funded merit pay in some years, officials say no evaluation method exists to support a merit system.
Chamberlain suggested that once the budget process is over, the county come up with a plan to deal with compression and other employee benefit issues. He added he is willing to take $500,000 out of the fund balance to start the process.
Finance Director Leslie Heidrick said even if the money is available, the county needs a market study to determine what the salaries are for particular jobs.
Mitchell suggested developing a comprehensive plan to deal with compression, longevity, insurance and other employee issues.
Commissioners appeared unanimous in wanting to develop a plan and path to deal with the various employee pay and benefit issues.
On the same 3-2 split, commissioners agreed to continue full funding of employee health insurance.
Hall and Sides noted most county residents who work in private business are required to pay a share of their health insurance, $25 a month.
Commissioners were unanimous in agreeing that the time is nearing that employees will have to share the cost of health insurance.
The board dealt with a few other issues during a nearly two-hour workshop. The proposed budget retains the current tax rate of 59.5 cents per $100 valuation.
The $130 million budget, on paper, will use $8 million in savings or fund balance, but officials expect the actual dip into savings will be less than $2 million. Traditionally, about 6 percent of the budget is unspent. In the case of the 2009 budget, that would leave $6 million to $7 million unspent.
– Decided to continue funding Piedmont Behavorial Healthcare at $595,000. Commissioners agreed they would like to cut the funding, in part because the multi-county agency has $100 million in fund balance.
After consulting with County Attorney Jay Dees, Heidrick said state regulations prevent the county from reducing funding
– Heidrick reported that Rowan-Cabarrus Community College officials have agreed to seek a grant from the Golden Leaf Foundation to pay for a new security notification system. If RCCC doesn’t get the grant, the county will fund the system.
– Decided against borrowing the money to pay the county’s share of a classroom building at RCCC. Commissioners had previously agreed to take the money from the county’s fund balance over a two-year period.The 2009 budget calls for spending $1.6 million.
Heidrick and County Manager Gary Page urged the board to use the cash and avoid the borrowing to avoid $1 million or more in interest and other costs.
– Commissioner Hall again urged the board to cut back on spending, citing the sour economy and the predictions that it may get worse.
– Sides noted that while commissioners focused on $5.2 million in new spending, more than $14 million in department requests never made it to the recommended budget or discussions.
Sides said a lot of the requests, such as radios, are necessities they can’t put off much longer.
Commissioners will hold a public hearing on the proposed budget at 6 p.m. Monday in the Cohen Administration Building. A final vote on the budget is set for June 16.