Tuesday, August 18, 2009

Taxpayers can't afford such luxurious benefits

By LOIS HENRY, Californian colunist
July 26, 2009

I'd be lying if I said I wasn't jealous

My entire working life, I’ve only ever heard of pensions — kind of like how I’ve heard of unicorns.

And medical benefits? Sure I get ’em, but I, and my co-workers, pay an ever-increasing percentage to keep ’em (and we’re lucky for that, I might add).

So, although I know that Kern County department heads and managers work hard and have huge responsibilities, I almost spit Diet Pepsi through my nose when I saw how much taxpayers are kicking in for their benefits and perks.

We’re paying a little more than a third of their salaries — 33.48 percent — into retirement alone. (Based on a yearly actuarial review, that amount was bumped up from 30 percent a few weeks ago even as the Board of Supervisors was pressing for more painful cuts to public services. Sheesh!)

For Public Defender Mark Arnold, that works out to $73,200.63 a year of taxpayer money chucked into his “gone fishing” account.

For District Attorney Ed Jagels, it’s $69,152.49. New County Administrative Officer John Nilon gets $66,482.85; Resource Management Director David Price gets $56,225.28, and so on.

The county pays $13,044 a year per department head/manager for medical benefits.

That’s not a shocking number in itself, except when you learn they don’t pay a dime toward that tab.

I wonder how many Lotto tickets (retirement tickets as I call them) I could buy with what I have to contribute toward my medical premiums each year?

Things are different for new employees, thank goodness. Anyone, including department heads, hired after Oct. 23, 2007, must pay a portion of their medical and retirement costs for their entire county careers.

That’s a start, but considering the economy today, supervisors need to look much more closely at those in the upper pay strata.

Supervisors Michael Rubio and Ray Watson both told me they are ready to look at health and retirement costs, perhaps having existing employees pay more into those funds now, rather than wait for attrition to naturally reduce those costs.

That may seem harsh to some, but it’s what the private sector does when we get in a money pinch.

“It’s important to attract good, qualified people to these positions,” Environmental Health Services Director Matt Constantine ($111,557.35 base pay) told me about what he described as the county’s “generous but fair” pay and benefits.

He and others I spoke with reminded me that pay was increased a few years ago because the county lagged far behind other agencies and the private sector and not only couldn’t recruit good people, it was losing them to better-paying jobs.

That was then.

Now, the county is struggling and Constantine agreed it’s fair to re-evaluate. He noted that department heads and managers did not receive a pay increase scheduled for this month that was part of a three-year, 12 percent increase approved in 2007.

“Maybe in these tight times, other reductions should be made,” he said.

Such as, perhaps, the auto allowance — $7,296 per year.

Other than a few department heads/managers (Fire, Sheriff, Environmental Health maybe), I don’t see a great need for these folks to be driving around on county business.

Oh, and I found out when they DO drive on county business, they can charge mileage!

It’s a “reduced rate” of 15 cents per mile as opposed to 50 cents per mile, I was told.

To which I can only say, AAACCKK!

I’m pretty sure county business won’t grind to a halt if the CAO, auditor/controller, county counsel, employers training resource director and a host of others have to do without a car allowance.

But wait! Don’t answer yet, there’s more!

All department heads/managers get something called KernFlex pay —10 percent of their base salary.

KernFlex was started in the 1980s to make up for items not covered by employee benefits and was NOT used to calculate retirement costs. Time passed and a lawsuit made it clear that such extra pay, not uncommon in other counties, must be figured in to retirement pay.

So, every salary for a county department head or manager is really 10 percent higher than what appears on the surface.

I think that’s a little sneaky and, after talking to Kern Medical Center CEO Paul Hensler ($341,250.12 base salary, no KernFlex because he’s a contract employee), think it ultimately harms recruitment efforts.

Hensler, who acknowledges he makes a lot of money but said it’s about at the midpoint compared to similar positions in the state, said when he’s trying to hook new administrators, salaries look low here until he explains KernFlex.

“It puts us at a disadvantage. I don’t know why it continues.”

Agreed. Just roll it into their base pay so we all know who’s making what, or do away with it.

Kern could take a lesson from the new executive director for the Local Agency Formation Commission, or LAFCO, who was named just last week. This is kind of a hybrid agency, but it typically has followed county wages and benies.

No mas.

The new executive director, Rebecca Moore, who’s been with LAFCO since 1994, will earn $103,500, with no KernFlex. She’ll also be paying 20 percent toward her medical benefits and 8 percent into PERS. (She will get the car allowance).

Her predecessor, Bill Turpin, enjoyed the full county ride.

“I’m very happy with my pay,” she told me. “Sure, I was a little disappointed not to get

KernFlex, but it’s fair. It’s the right thing to do in these times.”

Wow, she’s a keeper!

Opinions expressed in this column are those of Lois Henry, not The Bakersfield Californian. Her column appears Wednesdays and Sundays. Comment at people.bakersfield.com/home/Blog/noholdsbarred, call her at 395-7373 or e-mail lhenry@bakersfield.com.

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