Local Government TV

Tuesday, November 25, 2014

Can NorCo's Budget be Balanced on Backs of Workforce?

Though he denies it, it's pretty apparent that NorCo Executive John Brown is making up a $20 million deficit next year by cutting deeply into employee benefits and compensation and by allowing departments, even the jail, to remain short-staffed. He is, despite all claims to the contrary, attempting to balance the budget on the back of the County worker.

It's impossible without massive layoffs.

When he was Executive, John Stoffa used to claim that the average salary and benefits per employee cost the county $50,000 per year. Let's say it's $60,000. In order to make up the $20 million deficit, Brown would have to shed 333 of the County's 1925 full-time workers. In fact, since Northampton County is self-insured and pays its own unemployment, he would more likely have to shed around 400 workers.

Since the state mandates certain staffing requirements at the jail and at the nursing home, the brunt of this would be unevenly felt in other departments.

Sometimes, you just have to raise taxes.

24 comments:

  1. I believe if he does lay off this many people you will see county services suffer and in turn people of the county will not get the services they pay for in taxes. Its a shame that Mr. Brown feels the need to play political games as does county council and jeoperdize the real strength of the county and that its workforce.

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  2. It is the capitalist system. It may be unfair but it is the best in the world. Supply and demand. Don't take my tax money and redistribute it.

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  3. The county's problem is not one of revenue. It's one of spending. Just look at the example of Peg Ferraro and her decision ignore the management firm she voted to hire to overpay for the non-emergency ambulance contract.

    Peg and all who voted to keep the black hole of Gracedale in county hands, say aye and stroke a check to the county to put your money where your big mouths were.

    The problem is unsustainable pensions and Gracedale.

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  4. Pensions are funded by the employees throughout the time they work. If the employer kept their hands out of the pot there would be more than enough money in it.

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    Replies
    1. That's nonsense and you know it. For defined benefit pensions the employer contributes more than the employee and employer cannot touch the money to cover general fund or other deficits.

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    2. Your statement is nonsense. Employees must pay at least 5% of their wage to the pension fund and the employer also contributes. It is nor more than the employee. You are correct they cant touch it or it would be gone the same as social securty.

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  5. Why doesn't he just hire Betty Crocker as a consultant for $7,500 a month and raise revenue with weekly bake sales?

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  6. "Anonymous said...
    Pensions are funded by the employees throughout the time they work. If the employer kept their hands out of the pot there would be more than enough money in it.

    1:44 PM"

    meh.

    -Clem

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  7. You can hate on them, but Stoffa and Angle were right about Gracedale. It is on pace to run an $8 million deficit. That is a spending problem. It's totally out of control and there is no accountability. Peg shares the blame with the Democrats who demagogue this issue but have refused to raise taxes to support a non-core county government service.

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  8. Oh no!

    Time for "the Rich" to pay their "fair share"!!!

    FINALLY!!!!!!!

    If the county workforce STILL can't have their way, perhaps they should just burn all of Northampton to the ground --- like the Heroes of Ferguson, of course.

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  9. Taxes have not been raised since 2003, except 1/2 mill for Open Space.

    How can you keep taxes constant for so long and not pay the price? Oh! You can't. Duh!

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  10. 6:20 - You're ridiculous.And your racism is showing.

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  11. maybe brown should hire another consultant. that 80k for sahl communications was well spent to put into one's persons pocket versus 97k to cover 1610 employees and families for gap insurance. brown is fiscally conservative? only when he wants to be.

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  12. reibman's genius swaption had nothing to do with the current fiscal situation either.

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  13. brown's highly paid cabinet is worth every penny! not.

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  14. Is there no stopping this train wreck? How do you reason with insanity? In all my years I dont remember so many leaving at the same time. What do they say about a sinking ship?

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  15. They say "quick, find a lifeboat"

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  16. This is the most dysfunctional administration in the history of the county.Brown is an incompetent leader.

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  17. "reibman's genius swaption had nothing to do with the current fiscal situation either."

    It would not have had any real impact had it ben dealt with swiftly and with leadership. Instead it was allowed to spin out of control for six years and go from two million to thirty-two million until the Stoffa Admisntration, at the extreme prodding of county council, did something about it.

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  18. "Taxes have not been raised since 2003, except 1/2 mill for Open Space."

    There is no dedicated county real estate tax for anything as per state law. The half-mill tax was a half-mill real estate tax, period!

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  19. It is the capitalist system. It may be unfair but it is the best in the world. Supply and demand. Don't take my tax money and redistribute it.

    Get your head out of your ass. Your taxes are lower because I pay higher rates for people like you. The entire basis of our economy for the past century has been based on a model of redistribution.

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  20. That's nonsense and you know it. For defined benefit pensions the employer contributes more than the employee and employer cannot touch the money to cover general fund or other deficits.

    That may be so but the employer can choose NOT to contribute to the plan for a decade. That's exactly what has happened in the state pension.

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  21. This post is about Northampton County not the state. The county has made all its required pension payments in a timely manner.

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  22. 1:44pm said : Pensions are funded by the employees throughout the time they work. If the employer kept their hands out of the pot there would be more than enough money in it.
    Thats BS the county was %78 percent funded in 2012. Thats far better than most other counties. Employee's cannot touch their pensions.

    ReplyDelete

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