Loading...
HomeMy WebLinkAboutCOM 0533.009 2000-2002 t ~ - March 20, 2002 u.~;i' J ~ c~ r ` °c To: Mayor Harry Kim Subject: County Budget Crisis I have a suggestion that could ease the county's current budget crisis in a relatively painless way: offer an early-out package to employees who are within two years of retirement eligibility. In the short term, moving new people into slots now occupied by employees at the top of their respective pay scales would save significant payroll dollars. And, given the recently negotiated union contracts, new hires would accrue benefits much more slowly than those under earlier agreements. In addition, such packages could be offered selectively rather t~zan to employees in classifications currently experiencing shortages (such as the police department). Retirement payments do not come out of the county general fund nor would employer tax contributions continue to be an expense. The alternative -layoffs -would produce much less favorable results, i.e., junior (cheaper) employees would be laid off first, as required by contract, and the county's obligation to provide notice and termination pay would negatively impact the ultimate saving, as well as take months to accomplish. As a related negative, employee layoffs would impact the island economy in general as unemployment claims are filed Lastly, this type of accelerated but positive attrition would allow taxpayer money to buy additional services instead of funding asuper-sized payroll. Respectfully, ' J Grisham -355 Koana Way Kailua-Kona, Hi 96749 322-0041 cc: County Council members Comt~.:~Ts~ File :3©. t;yPr. To: