July 3, 2007
(Cleveland) – With a number of pressing matters of public interest that are being raised in our County right now, it seems like a good time to consider how responsible – or irresponsible – our County Commissioners have been in their stewardship of public dollars.
Let’s look at the County employee buyout, announced in May 2001: The concept of the early retirement incentive program (ERIP) was one of paying higher salaried employees’ service credit to induce them to retire early so that payroll could be cut through combination of attrition and low-salaried new-hires. According to the Ohio Auditor of State’s Office, the Commissioners estimated that 973 employees out of the eligible group would take advantage of the buyout, at a maximum cost of $111 Million and an estimated net savings to the County of about $45 Million over five years. Six years later, we can look back on the buyout and see the results.
It turns out the Commissioners’ estimates were a bit off, as over 1,100 County employees seized the opportunity at a cost of over $118 Million - $7 Million over budget right from the start.
You ask: But did it save us money? Was the net result a good one on the County’s balance sheet? The answer, predictably, is a resounding NO:
According to the County Budget Office, the gross payroll reduction in the four years after the buyout (2001-2005) was approximately $74 Million Dollars. In the fifth year (2006) gross payroll actually went over pre-buyout levels by more than $13 Million. The result: a gross payroll reduction over the full five years of about $60 Million. Taken against the $118 Million buyout expense, that means a net cost to County taxpayers of $58 Million.
But wait, it gets worse! Payroll has further increased and County estimates for 2007 put payroll at well over $400 Million – that is an increase of over 22% from the post-buyout low in 2003. A twenty-two percent increase over a four-year period in which the Consumer Price Index (CPI) for Greater Cleveland went up just 10%. Incidentally, it also means that over the long haul (say, for example, the 14 years since we’ve had a Republican on the County Board of Commissioners) County payroll has gone up 53% in roughly a decade and a half. In that time since 1994 the CPI for Greater Cleveland has gone up by only 32%, while Cuyahoga County has shrunk by nearly 100,000 people.
So why is our County payroll growing faster than inflation while our County population gets smaller? It seems that Dimora and company just don’t have the guts to change County pork barrel hiring practices.
Back in 2001, then-Commissioner Tim McCormack told the Sun News: “If we don't save through significant long-term attrition much more money than goes out to pay for these enhanced benefits, the public's trust will be violated." Need we say more?
Paid for by the Republican Party of Cuyahoga County
Rob Frost, Chairman
1500 W. 3rd St., Suite 120
Cleveland, OH 44113
(216) 621-5415
Direct (216) 621-0077
Fax (216) 621-1841
rfrost@cuyahogacountygop.com
I just love you guys.
ReplyDeleteYou guys complain about the Cuyahoga County Democrats, yet you righties are even more useless.
You republicans cannot even beat Dennis Kucinich. And I'm glad Voinovich is starting to open his eyes about the war.
What have you guys ever done good for the county? If you guys are so much better, why do people here keep electing democrats?
Hmmm, guess you told me!
ReplyDeleteUhm, your points are hard to dispute.
People here are sheep, that's why they keep electing the crooked democraps from this area.
Unfortunately, the RPCC is non-existent to combat this.
Instead of winning elections and turning Cuyahoga County around, they are more concerned protecting their traitor buddy, the democrat in GOP clothing, Roger Synenberg or the egotistical, Booby Bennett.
Beat Dennis? How the Synenbergs keep giving him campaign donations?
Pretty sad when an executive committee member makes donations to our opponent. And we wonder why we can't win an election.
Rinovich? Well this will be his last term, whether he retires or not.