Washtenaw County government will be 'smaller' next year, commissioners say
Washtenaw County commissioners agree the county should strive to provide residents with the maximum amount of services possible as revenues dwindle. But from an overhead standpoint, county government almost certainly is going to become smaller.
"The reality is we have to be smaller next year," said county board Chairman Conan Smith, D-Ann Arbor. "Structural reform is necessary."
Conan Smith
Commissioners unanimously adopted a set of strategic budget priorities Wednesday night. The six-page document contains a series of guiding principles that county officials intend to follow as they work to close a $20.9 million structural deficit for 2012 and 2013.
One of the principles stated in the document is for Washtenaw County government to emerge from the current economic crisis "smaller, stronger and more stable."
Commissioner Yousef Rabhi, D-Ann Arbor, took issue with the word "smaller," suggesting it resembled right-wing rhetoric. Perhaps it's inevitable that county government will become smaller as a result of declining revenues, he said, but it shouldn't be a stated goal.
That sparked a discussion that had several commissioners chiming in. Commissioner Kristin Judge, D-Pittsfield Township, said it's simple math.
"It's a reality that we're not going to have 2007 revenues again until 2025," she said. "You can't be the same size with less revenue. I don't care how efficient you are. It's just a reality we live in. We have to have maybe not less services, but something has to be smaller."
"That may be what happens, but being smaller is not a goal of mine," said Commissioner Barbara Levin Bergman, D-Ann Arbor.
Commissioner Dan Smith, R-Northfield Township, said he was worried commissioners were trying to "wordsmith and hair-split this document to death."
"I think we need to read this and take this document in its entirety, and not focus excessively on any one particular bullet item or any one particular sentence," he said.
Conan Smith noted that about two-thirds of the county's budget is in personnel costs, and the kinds of structural reform the county must make will impact employee counts.
Commissioners ultimately decided to leave the word smaller in the document, clarifying that it mostly means becoming more efficient in service delivery.
Yousef Rabhi
"Maybe it's just a matter of clarifying for the administration that this is a matter of making sure the people on the ground get the maximum amount of services they can. And if that's what we mean by this, then I'm fine with it," Rabhi said.
The county is projecting a $20.9 million structural deficit over the next two years — the equivalent of about 207 full-time positions, county records show.
Records also show the county had 1,392 full-time employees as of Dec. 30, including about 646 in the general fund. That's a slight increase from the 1,333 employees the county had in 2005, including about 630 in the general fund.
The main reason for the increase has been the county jail expansion. As a result, the sheriff's office staff has jumped from 280 to 316 employees since 2009. Employee counts in most other departments have remained relatively flat, or saw either minor reductions or increases.
Many local municipalities haven't experienced the same kind of stability. The city of Ann Arbor, for instance, has shed nearly 30 percent of its work force over the last decade.
One of the reasons why the county has been able to maintain staffing levels, officials say, is because a number of its unions have been generous in making concessions.
Some commissioners expressed interest Wednesday night in asking for additional concessions from groups that aren't contributing as much as others toward the cost of their health care. The county has 17 separate collective bargaining units and not all pay the same amounts.
"If you look at the different contracts, they're very different as to what amount of money they put into premium-sharing or co-pays and different things," Judge said. "I would like to see a little bit more parity among all of the employees, so you're not sitting next to someone who's got a whole different benefit package than you do just because they're in a different union."
County Administrator Verna McDaniel said that's the goal, but cautioned the county has to be careful not to cut benefits so much that it becomes unattractive to work for the county.
Download The Reports
Commissioner Alicia Ping, R-Saline, expressed interest in seeing the county find ways to reduce health care costs other than wellness programming, which is stated in the board priorities.
"I think by doing some internal restructuring, there are opportunities to save lots of money. We just have to look at it," Ping said.
Due to shrinking state and federal funds, the county is contemplating a large reorganization that could include a merger of three departments: Community Development, Economic Development and Energy, and Employment Training and Community Services.
Diane Heidt, the county's human resources director, said the proposal could come before the board in May or June for implementation starting in July. She said the implementation likely would happen over a six-month period and there would be staff reductions.
"The majority of the funding for that comes from the state and federal government, so we know there's going to be programmatic reductions of at least 10 percent," she said. "In some areas, they're actually cutting whole service programs."
The county's 2011 general fund budget totals $98.7 million — more than 60 percent of which goes toward public safety and justice.
A forecast provided by McDaniel in January showed expenses ticking up to $103.2 million in 2012 as revenues drop to $90.2 million. That means about $13 million needs to be cut out of next year's budget, with millions more to follow for 2013.
Ryan J. Stanton covers government and politics for AnnArbor.com. Reach him at ryanstanton@annarbor.com or 734-623-2529. You also can follow him on Twitter or subscribe to AnnArbor.com's e-mail newsletters.
Comments
leaguebus
Thu, Mar 17, 2011 : 9:26 p.m.
Lets nit pick the commissioners comments to death. I love the less tax, smaller government types, they are never miss a chance to chuckle when there are a few more layoffs and pay cuts. So what if a few of these people lose their homes, cars, and pensions. These people have been overpaid for years, its their problem, not mine! Ha, Ha, Ha. We low tax guys are teflon, we make enough in the private sector to not care what happens to people that have worked hard for many years in the public sector and now find that a group of people will not raise the gas tax or any other tax to keep the county steady. We are quickly becoming a third rate state and a few more years of budget cuts will cement the deal. You can give all the tax breaks to the rich and businesses you want, but when US23 and I94 are impassible because of lack of maintenance, you will see how many companies want to build here.
jcj
Fri, Mar 18, 2011 : 1:16 a.m.
"Lets nit pick the commissioners comments to death. I love the less tax, smaller government types, they are never miss a chance to chuckle when there are a few more layoffs and pay cuts. So what if a few of these people lose their homes, cars, and pensions." I have have family member lose their homes and I guarantee you I never "chuckled"
ShadowManager
Thu, Mar 17, 2011 : 6:06 p.m.
"Small" government sounds good on paper, but unfortunately government needs to be "big" enough to plow and salt the roads, cut down trees, take care of policing, and staff civic offices so that things get done...and lately, given our horridly polarized political milieu , the two ideas seem irreconcilable.
Roadman
Thu, Mar 17, 2011 : 5:22 p.m.
One way to close the county budget deficit is to ensure that sitting County Commissioners pay back per diem and expense overpayments - Conan Smith and Barbara Levin Bergman last I heard are the final two holdouts and owe together about $2,400 .00 back to the county. Road Commissioner Ken Schwartz has indicated he will repay, but has not done to to my knowledge to date. Former County Commissioner Jessica Ping owes over $5,000.00 and has neither contested her liablilty for this sum or made any public commitment to pay back these overpayments. The County Commission should diligently seek recoupment of these funds as Tom Wieder has already expressed concern that the applicable statute of limitations may expire before voluntary payments are received.
Christine Muscat
Thu, Mar 17, 2011 : 5:04 p.m.
I would like to point out that if you watch the actual video of the meeting, that Yousef Rabhi never says "right-winged" Rhetoric. He says Rhetoric coming from the house and from the legislature. This is a very important distinct. I would merely suggest that you take a look at the video of the meeting.
cinnabar7071
Thu, Mar 17, 2011 : 4:23 p.m.
"right-wing rhetoric" Thanks for showing your true colors.
Yousef Rabhi
Thu, Mar 17, 2011 : 3:15 p.m.
Thank you all for your comments. I understand the need for us to live within our means, as I clearly stated at the meeting. The distinction that I made is a matter of what we want to do and what we need to do. I know that we NEED to reduce our size and inevitably become smaller while our budget crisis persists. That was clearly stated in the document and I supported that language. But providing less service should not be what we WANT once the budget crisis is over and we have the means to provide services again. I urge everyone to watch the 10 minute discussion that occurred for clarity. It starts at 1:30:00 and ends at 1:42:00. Check it out! <a href="http://video.ewashtenaw.org/boc/showtime.pl?2011-03-16-WM=video" rel='nofollow'>http://video.ewashtenaw.org/boc/showtime.pl?2011-03-16-WM=video</a>
jcj
Thu, Mar 17, 2011 : 7:13 p.m.
Commissioner Yousef Rabhi The only thing I take issue with is you apparently objecting to the word smaller suggesting it resembled right-wing rhetoric. The county has its hands full trying to keep as many services as possible and this childish comment causes serious doubts as to whether you are up to the task.
Roadman
Thu, Mar 17, 2011 : 5:30 p.m.
Commissioner Rabhi: What is being done about the commissioners who ahve not repaid the County for ineligible per diem and expense outlays that Tom Wieder has been rightfully pursuing during public commentary?
Macabre Sunset
Thu, Mar 17, 2011 : 4:21 p.m.
You haven't addressed your rather partisan remarks. I'm not certain there even exists a right wing in Washtenaw County. But once you have means again, you need to take steps to ensure this never happens again. It's your responsibility to stay within those means, and not take anything more from the taxpayers than absolutely necessary. This country is going bankrupt because people in your position are not treating government budgets in a responsible manner.
Kristin Judge
Thu, Mar 17, 2011 : 1:52 p.m.
Smaller does not have to mean less efficient in this case. We have less money to work with, so something needs to be smaller. In order to make a smaller, more effective government, we can do things that make us better at delivering services to residents. Consolidation, collaboration, using technology and looking to streamline business practices within departments are all ways to do more with less. During tough economic times, there is incentive for everyone to work together. Our county expenditures grew as our revenues grew every year over the past 20+ years during the good economic times. Washtenaw County took on great programs, because we had the money. The money is not there anymore. We will not see 2007 revenues again until at least 2025. That is a reality. I see this economic challenge as an opportunity to bring people together to find solutions that make us better at delivering services countywide. It is not about rhetoric but about being responsible with taxpayer dollars.
Roadman
Thu, Mar 17, 2011 : 5:33 p.m.
Ms. Judge: What is being done to recoup the per diem and expense overpayments from the four holdouts? None are contesting their liabilty as I understand it. Tom Wieder has rightfully been pursuing this issue during public commentary period.
KeepingItReal
Thu, Mar 17, 2011 : 1:51 p.m.
Commissioner Rabhi. Please help me to understand how living within your means is "right wing" rhetoric. If my gas bill goes up but my income stays the same, I'm going to have to figure out a way to pay my gas bill if I want it to stay on. That may mean cutting back on some expenses that I may not need. What's "right wing" about that? co0mmissoner Bergman. What if smaller may be better. Would that be a goal of yours? It seems obvious to me that if the county if facing a $20 million dollar shortfall over the next twos years, some adjustment has to be made. Maybe we should start by adjusting the number of irrational commisioners we have.
Celia Haven
Thu, Mar 17, 2011 : 1:50 p.m.
I think it's pretty clear here that nobody has a problem with smaller government, they just want to make sure it's not smaller only for the sake of saying it's smaller. If the government is trying to avoid rhetoric, aim for efficiency, and protect services, where is the issue?
jcj
Thu, Mar 17, 2011 : 1:05 p.m.
Commissioner Yousef Rabhi, D-Ann Arbor, took issue with the word "smaller," suggesting it resembled right-wing rhetoric. Perhaps it's inevitable that county government will become smaller as a result of declining revenues, he said, but it shouldn't be a stated goal. Well so now we have at least one commissioner that is more worried that it might look like the county needs to implement some cuts like someone on the right might advocate than he is worried about doing what the county needs! I submit that is some pretty small thinking. We need commissioners that are determined to do what needs to be done with out worrying that it might look like what the "other side" wants. Use any term you want as long as the end result cuts administration and overhead cost as much as possible. While keeping as many services as possible. small (smôl) adj. small·er, small·est 1. Being below the average in size or magnitude. 2. Limited in importance or significance; trivial: a small matter. 3. Limited in degree or scope: small farm operations. 4. Lacking position, influence, or status; minor: "A crowd of small writers had vainly attempted to rival Addison" (Thomas Macaulay). 5. Unpretentious; modest: made a small living; helped the cause in my own small way. 6. Not fully grown; very young. 7. Narrow in outlook; petty: a small mind. 8. Having been belittled; humiliated: Their comments made me feel small. 9. Diluted; weak. Used of alcoholic beverages. 10. Lacking force or volume: a small voice.
Top Cat
Thu, Mar 17, 2011 : 12:29 p.m.
For starters, what smaller should mean is fewer commissioners.
Craig Lounsbury
Thu, Mar 17, 2011 : 11:33 a.m.
"Commissioner Yousef Rabhi...... Perhaps it's inevitable that county government will become smaller as a result of declining revenues, he said, but it shouldn't be a stated goal." "That may be what happens, but being smaller is not a goal of mine," said Commissioner Barbara Levin Bergman, D-Ann Arbor." So what is the goal? Bigger Government? How big would you like to be if you had your choice?
Roadman
Thu, Mar 17, 2011 : 5:27 p.m.
Mrs. Bergman should be repaying the $1,800.00+ she owes the County in per diem and expense overpayments. The Commission should not be lecturing for others to make sacrifices when they don't step up to the plate and repay what the County is owed.
colvina
Thu, Mar 17, 2011 : 4:44 p.m.
Big enough to fix the roads! Arrest the criminals! House the homeless! Don't you want a government big enough to do that? I agree with Mr. Rabhi. Small govt in itself should not be a goal; adequate services should be a goal.
Macabre Sunset
Thu, Mar 17, 2011 : 11:03 a.m.
So now it's "right-wing rhetoric" to say, "ummm, dudes, maybe spending more money than you're taking in is a bad idea." Good to know.
Jay Thomas
Thu, Mar 17, 2011 : 7:42 p.m.
Between Democrats no less!
InsideTheHall
Thu, Mar 17, 2011 : 10:55 a.m.
Mr. Rabhi, it is not right wing rhetoric, it is being responsible. In our homes and businesses we live within our means and we expect that YOU as a steward of our tax dollar make IT holler and stop grandstanding. It is getting very old very quickly.
DDOT1962
Thu, Mar 17, 2011 : 11:20 a.m.
Actually, one of the reasons we're in this present economic mess is because a large swath of the American public did NOT live within their means, but instead lived larger than life on a tremendous amount of bankrolled debt. Now that reality has reared it's ugly head, the pursekeepers at all levels, from the simple household through the varying strata of government, are having to make tough choices about what to continue funding and what to eliminate.