(Bel Air, MD) – – Harford County Executive David R. Craig has today announced that he will submit legislation to the County Council seeking its approval for funding a one-time retirement incentive program for county employees.
“As the Administration is working on the preparation of the FY 15 Budget, we have analyzed and assessed many alternatives to balance the budget given our flat revenue projections. One alternative is to reduce the county’s workforce through attrition to include retirements. As a result, I have made the decision to, with Council approval, implement a one-time retirement incentive program for County employees,” said County Executive David R. Craig.
The purpose of the incentive package is to reduce expenditures by reducing the workforce through attrition. While the cost and benefit of the incentive package will depend on the number of employees that choose to participate, the county estimates the incentive package will cost $2 million in additional funds while it will save an additional $4 million through the first six months of FY15.
Among the benefits included in the package as proposed is payment for 100% of an employee’s Sick Leave balance. Under ordinary retirement, an employee is entitled to a 50% pay-out of sick leave.
This program would apply only to county employees whose agency is under the direct control of the Harford County Executive. County employees who decide to retire under this incentive program must make their irrevocable intent to retire known to Human Resources by March 7, 2014, and must retire by July 1, 2014.
He should work with the Superintendent of schools to offer a 30 and out package that would encourage teachers to retire early which would save the school system a great deal of money. What are the chances of David Craig working with the school system in a collaborative fashion? We would be much better off if we all just worked together collaboratively instead of taking hard stances for political reasons.
Unfortunately HCPS employees are in the State retirement system and they can not even collect until they are 60 if they have 30 years in. Most have 30 years at 52.
Teachers absolutely donor have to wait until they are 60 to retire with full pensions! That only applies to those who were hired in the last 3 years
Do not*
I started teaching long before 2011 and at the retirement meeting I went to the representative from the state said years of service + age must equal 90. Since Maryland is one of the states that taxes your retirement, it’s not financially feasible for me to retire until at least 62 so I can collect social security to help try to pay the bills. And as a teacher…we only receive 25% of a maximum of 206 sick days…which is then taxed as well. I’d like to get 50% much less have 100% dangled in front of me.
But this county has a long standing policy of hating teachers so I don’t expect anyone around here to think that honoring my contract is a fiscal responsibility. I just know that because of all the new initiatives like the Danielson framework, SLO’s and Common Core, I’m working harder (at things like data collection of ‘evidence’ that don’t truly affect learning or teaching) and because of the increase in health insurance and no raises for years, I’m making less than I did 5 years ago. I know of many teachers at my school actively looking for other jobs in other counties and fields. A friend of mine said they were told at a meeting at their school that there are so many experienced teachers leaving that HR had to move an employee out of their position into only doing exit interviews and paperwork. Soon the experienced teachers will empty out and Harford County will be filled with new (and in their eyes, cheaper) teachers that will also leave once they go years without a raise.
Don’t these folk’s positions need to be replaced? And, at what cost? If not, were their positions really needed in the first place? Hmmm.
Well ain’t that a fine kettle of fish.
I’m looking to retire and here it is the 15th of 2014 and I have already used all my sick time.
Screw you Craig I need more.
Wait…..isn’t Craig going to retire by than?
Obviuosly the worker telling David Craig ‘screw you I need more’ has no realization of the real world economy or the enduring recession. Anyone that used up that much sick time over thirty years should have been let go years ago for abuse of discretionary sick time (unless he happened to have seven open heart surgeries). The private sector employees that have had to endure both reduced pay and benefits would have a hard time feeling sorry for him. Additionally, private sector companies aren’t obligated to pay out any unused sick time only accrued vacation time. For every retiring county worker there is probably going to be at least a hundred applicants that would be glad just to have a job and would take it with a fraction of the existing benefits county workers now enjoy. I understand Craig’s desire to reduce the higher expense of long term employees by replacing them with new lower paid entry level employees but the county will lose experienced staff to save money. The answer should be stop kicking the can further down the road….the new hires will eventually end up at or above the salaries of the employees they’re replacing. The real answer is gradually adjust and lower the beneift and salary packages of newly hired employees to match the reset salary and benefit packages of their private sector counterparts. Obviously that will involve fighting unions but even they have to face reality.
You fail to remember a few things
1)”The private sector employees that have had to endure both reduced pay and benefits would have a hard time feeling sorry for him.”
True but before that when the private sector employee was getting huge raises and bonuses the public sector guy got far less and was told the trade off was predictibility in a bad economy.
2) “Additionally, private sector companies aren’t obligated to pay out any unused sick time only accrued vacation time.”
That may be but the deal these guys made included pay out for some unused sick time.
3) “The real answer is gradually adjust and lower the beneift and salary packages of newly hired employees to match the reset salary and benefit packages of their private sector counterparts.”
Is that complete with huge COLA’s and bonuses in a good economy? What about jobs with no private sector equivelent? Or where the private sector makes more?
I remember just fine….I remember gas costing 36 cents a gallon but that doesn’t apply to the reality of where we are in todays economy. I started working about 40 years ago and you’re correct in stating the typical municipal worker made lower pay but the benefit package was superior. I also worked a public sector job for over ten years and was part of furloughs by one county executive and a RIF by a another that cost me and hundreds of others employees their positions that were ‘bumped’ out by other senior union employees in the same pay classification with absolutley no experience in the job they were taking over. Because of my longevity I was able to ‘bump out’ another employee to take his job which I did have experience in.
The fact is municipal employees have enjoyed keeping those benefits and also got COLA’s for decades to where in many cases they caught up with and passed their private sector counterparts in salary. The plain fact is the bonuses and COLA’s you’re referring to only happens to Wall Street type executives…my company and most other small businesses have reduced benefits & salaries and in some cases gone to part time workers to avoid paying any benefits at all. I’m not in support of those things by any means but it is the reality of where we are in this economy. Drive in any direction for 10 miles and count the number of ‘For Lease’ signs and you’ll have an indication of the number of businesses that have closed due to the recession.
In today’s world it’s just not sustainable to keep paying more with less and less.
I personally know and deal with many government workers on local state and federal levels that are highly skilled and dedicated employees. I’m sure although difficult… many would understand the reality of reducing some of those benefits in order to save their own or someone else’s job. A real life example is when the man cut off and sacrificed his arm when pinned between boulders in order to save his life. He could have died there with two attached arms but chose reality over his desire to keep both arms.
Already some private sector union employees have figured out it’s better to have a job and maybe give a little on the benefit package. When I left my public sector job to return to the private sector twenty years agp, I was receiving 5 weeks vacation, 3 weeks sick time, a couple of weeks in holidays and I think a week of personal leave. Seriously does anyone think that much paid time is justifiable?
My oldest son has worked for a county police department for the last 18 years and puts his life on the line every day. His salary has been frozen and he’s very much grateful to have his job to support his family. Since the ‘great’ recession the benefit package he has in place has been reduced for new officers in time needed to retire, contributions to medical insurance etc. and they still get about 400- 700 applicants for every new police academy to fill about 30-40 retiring officers jobs.
I believe that making the decision to ‘cut off’ the arm in order to save the life and to possibly reel in some of those benefits even if only for newly hired employees would preserve many jobs and prevent future layoffs or furloughs.
So…..if these private sector companies are closing because they can’t compete…..we should employee their failed employee compensation models in the public sector? That makes a whole lot of sense!
The closing of companies has nothing to do with having less benefits than public sector. I guess it would have made them stay open longer if they modeled the public sector benefit packages and increased their costs ….really? People in sheltered worlds oblivious as to why the economy went and continues to go south should go outside their bubble once in a while to see what is actually going on around them.
Like the minimum wage which can and will be debated as being too small. Why shouldn’t it be raised to $50/hr instead of $10/hr…..the companies that employ workers can afford it right? When you go to McDonalds and your kids happy meal is $38.00 maybe someone will say enough is enough.
I heard that ‘I pay your salary’ crap when I worked for the government but as obnoxious as it sounds and even though gov’t workers also contribute to their own salaries the lions share and our entire government depend on a strong private sector economy. The economy is far from that and government’s are reeling in the cost because of it.
It doesn’t matter what our opinion on it is……again no government (local, state or federal) can keep shelling out more and more when the revenue source is less and less.
Even with the rain tax, higher tolls, red light and speed cameras, increased development fees, name it higher everything you can only squeeze out so much on taxpayers (check out Greece, Spain and some other previously high rolling countries). Those of us that have had reductions in income ranging between 15% to 50% of our income pre-recession have had to deal with it so when the cuts work their way back up in the government system there won’t be any choice but to deal with it.
Maybe our local governments can just go bankrupt like others across the country already have in hopes of a federal bailout…no problem there right? What’s another couple trillion on the defict anyway.
Generally speaking times were good and aren’t so good now and it’s up to all of us to give a little more so our grandchildren don’t inherit this mess.
@Walt– Your dissertation of the state of the county’s tax burden couldn’t be more off. You are completely out of touch…. HCG is not bankrupt or close to it and any comparison to that of Greece or Spain is just foolish (the problem there is more of not enough people actually paying taxes and govt’s borrowing to maintain operations) Clearly, none of that is present in our local little piece of the world. The county’s property tax hasn’t been increased in over 10 years. Most businesses couldn’t survive in today’s economy by charging the same as they did 10 years ago ( increased costs are also part of the equation when govts develop their budgets too). I can say with a great degree of accuracy that income in Harford County and Maryland hasn’t decreased anywhere near 50% from 6 or 7 years ago for the majority of the taxpayer. The county can manage its resources better and employees, deputies and teachers not only deserve but should demand cost of living adjustments at the very least. you can talk all you want about how hard the private market has it but there is ample evidence that the county’s tax base is growing due to demand, growth in business (retail, military or services) Plenty of new employers have expanded in our county from Target, APG, Wegmans and other employers in the county. I am not saying that the local economy is booming either, but things are not as dire as you paint them. Even if the county doesn’t raise taxes, it seems like the county’s coffers will increase about 7 million according to the CE’s own statements. So the revenue has increased mostly due to income tax receipts which is a way fairer way to tax than to increase property taxes. That way the burden is spread to the whole tax base, not just property owners. The county needs to become more efficient maybe by combining some depts. and reduce overhead, operational costs and cut some of the upper level management. The benefit package as far as pensions falls under the State of Maryland and employees already pay more towards their own retirement, medical copays and insurance premiums have increased and front line staff has in many instances been reduced by attrition, retirements and classification changes, The offer to add an incentive to those that may retire now as opposed to later is a valid strategy. Remember that any cuts to the workforce by means of a reduction due to budget shortfalls would still protect those that are making more due to seniority. While I do appreciate your point of view on this, the fact remains that the past few budgets have already been balanced on the backs of employees. If the CE’s office and the council would stop making foolish spending choices such as buying land at overpriced amounts (over and above appraisals), stop purchasing chemical dumps and buying land for a new trash site which wasn’t even used the county could probably give its employees the raise they deserve. I think as a county we need to stop the race to the bottom and realize that employees deserve to be paid a fair wage. Most people that I know in the private market are getting raises and bonuses (not just Wall Street types). Surely, the council can actually grow some and present ideas and amendments that actually address the unchecked borrowing of this administration and use the rainy day fund and its ever increasing balance to actually pay its employees a well deserved raise, cola or step depending on their classification system in place. If the taxpayer isn’t really paying more for county services, why would the taxpayer have a problem with it? Isn’t it the mantra of private compensation that if you are more efficient and produce more that you get compensated accordingly? do those rule only apply to private employees?
Respectfully submitted.
@mostly blue
The beauty of debate is we can agree to disagree. The plain fact is that unless you’re over a hundred years old this recession is worse than any we’ve seen in our lifetime. One can argue it’s closer to the end than the beginning but it’s hard to dispute that it’s actually over. It may be for some people and maybe some never even saw a recession at all but the unemployment numbers, seemingly never ending foreclosures crippling home values and overall dwindling of our job market indicates it isn’t as close as some people think to being over. Just because this area is doing better than other areas in the country doesn’t mean it’s out if the woods by any means. For all the projects and employment opportunities you state that have come in to the county there are plenty that have left. On top of that the leasing of new and current space is still pathetic at best. Drive up rte 22 and look at Merritt’s Leed certified building sitting vacant for over two years. There’s another one over by Ripkin stadium, another large tract on 22 just west of 95 with design completed that’s sitting idle, and James Run office/mixed use project sitting idle over at 543 & 95 to name a few. Water’s Edge the cadillac of business parks has seen there vacancy rate go up significantly and there rent rates go down not to mention more ‘for lease’ signs than yard sale signs on a nice spring day To say we’re in even good shape would be living in a dream world and certainly unjustifiable. Aberdeen and Edgewood Proving Ground albeit the cyber security hub for the US govt never saw what projections were made for brac and the word sequester hasn’t made anyone in that area or any of the private government contractors that came here to support brac warm and cozy about the future. If jobs don’t materialize where will the money come from to have higher salaries for deserving teachers and other government workers? I’m in agreement about the waste in government. It’s ridiculous to have spent millions buying up land preservation tracts to prevent development when those tracts probably wouldn’t have been developed to begin with. If they did get developed would it have been so detrimental to have those assessments added to the tax base? The housing bubble that was initiated in part by government with the premise ‘everyone is entitled to own a home’. Changes in government regulations and government backed loans allowed for stated income as opposed to verified income, lenders builders and developers profiting off of fictitious appraisals with values escalating in some areas in excess of 30% per year, and an overall feeding frenzy that was seeing entry level townhomes costing in the 300k range.
….absolutely ridiculous The inevitable bursting of the housing bubble caused a reduction in income source to the county when the foreclosure rates blew up and property values dropped in some areas by over 30%. Add to that funding reduced from the state because their funding was reduced by the fed’s….any pattern there? The fed’s are the only ones printing money that they don’t have not the state or local government. Although always controversial the state and local municipalities actually do need and use budgets.The foreclosures still haven’t finished their run and home values are still far lower than the pre-recession jacked up values. There was a reset then and there will be a reset in government because government loves to spend money and is addicted in some cases to spending it like a crack addict is to crack and it just doesn’t have it to spend. I personally know many business owners that have closed up shop or others that are hanging on by there fingernails. They have skipped paychecks numerous times to make payroll and have seen their personal assets dwindle to stay afloat hoping an end to this recession will eventually come. Most people won’t feel sorry for the business owners because they have a misguided perception that their pockets are as deep as the governments and they’re not. I don’t see many people on welfare hiring anyone nowadays so it’s crucial to keep small business owners healthy enough to supply jobs to people. If they go out of business their employees won’t be out spending money to help bolster the economy and worse yet more foreclosures inevitably will come. Increasing their taxes and operational costs sure isn’t the solution to keeping them afloat. I do know many people working for less than 50 % of their pre-recession income and if sounds unrealistic it’s probably because the people that don’t believe it never signed a paycheck let alone went without one while still working 60-70 hours week. Many more business are affected by this than people realize and only time will tell if they hold on for this magical change that was promised to take hold five years ago. My own companies billing rates haven’t gone up in seven years not because we don’t want to raise them but because we simply can’t. The lack of work is creating a competitive fight to seize what work is available out there with some people willing to work without worry of a profit just to keep their workers employed. That mindset is in part the reason some companies have folded because they too couldn’t sustain it. That lowering of the bar and devaluation of services has altered the perception of what it really costs to do work. It certainly isn’t less expensive to run a business than it was seven years ago considering employers health care costs have in some cases doubled or tripled. .No different is Harford County Government….it has to live within it’s means and its leaders like private sector owners have to decide where to cut money and where to spend it. If the county leaders are doing a bad job simply elect new ones but realize like their private sector counterparts they can’t spend what they don’t have. Maybe discussions like this will get more people engaged to attend public meetings and have a voice in where the money actually goes rather than sitting back with the ‘screw you Craig I need more’ attitude.
Walt my grandmother is 90 and she recalls living through the 30’s an she said this was a walk in the park compared to that. She also suggested if you think this is bad than perhaps you lack a proper frame of reference!
I work for the Army, and have approximately 2500 hours of sick leave saved over a 30+ year career. When I retire, the Federal Civil Service Retirement System (CSRS) won’t pay me cash, but will allow me to add a 1 + years (2087 hours = 1 year) to my service time. Lots of my peers squandered away their “sick leave” over time, and then cry and moan when they really need it.
Gosh filthy Craig sure appreciate the sudden and important concern over the budget projectors – gosh mighta been equally worried when you orchestrated the TIF for Beechwood (cost 2.7M) or purchased the poisonous chemical park in HdG (750K). Filthy Craig.
I live two blocks from the chemical park. You all didn’t stop the purchase now did you? That’s Life in Havre de Grace.
Hey Cdev- County employees are also in the state retirement system and you don’t have to wait until age 60 to collect. You can begin to collect once you have 30 years of service.
rule of 90 says you do for the state system. years of service plus age must equal 90. If you start teaching at 22 and teach for only 30 years at 52 plus 30 years in will not equal 90 so you can not collect your retirement. Maybe this was a teacher specific rule along with their contribution of an extra 2% to the general fund!
So, at what age can you begin collecting your retirement if you started at age 22, and teach for 30 years?
60 as I said!
The Rule of 90 applies only to the newest Retirement system – established for those hired on or after July 1, 2011 – Reformed Contributory Pension Benefit — all other plans have different rules for retirement eligibility.
See Page 27-28 for descriptions:
http://www.sra.state.md.us/Participants/Members/Downloads/Handbooks/BenefitHandbook-Emp-Pen.pdf
Quite true DJ, quite true!
Just like his current campaign, Craig has spent too much this year and needs this spending this to get out of hot water for this Budget cycle, He also is including his appointed incompetent Department heads for an extra payout before they leave. Soo much corruption here.
Before the insentive I put in for retirement. Icing on the cake now. Stop bashing Craig. Your low morale is what forced my decision. So move on Boys.
You assume the Council will fall for this scheme. I doubt they will give him another cent to waste after his millions in land purchases to chronies, $800,000 water study, 1.7 million in facility study to shake down donars in procurement process and now give golden parachutes to his appointed friends. Please.
Donar is the Germanic god of thunder. Hold on , I’ll do more research.
To bad Craig didn’t include the Sheriff’s Office in this buyout plan. I would think there would be a mass exit of many senior ranking Deputies who, quite frankly, need to move along. Perhaps the thought is that Sheriff Bane will not be reelected and most of those Deputies will retire anyway when the new Sheriff takes office without the additional monetary incentive to move along. The lingering question however is, if it really saves money why not go for it?
My understanding is that this proposal includes eliminating the positions of people who take advantage of the buyout, not replacing them with younger and cheaper employees. The HCSO is short staffed as it is and can’t afford to lose the 15-20 positions (at least) that they’d be forced to under this plan.
The law enforcement side isn’t quite as bad off as corrections when it comes to staffing. Corrections is something like 70 deputies short of what they need to safely operate the jail which for over a year has resulted in mandatory overtime every week for most deputies working there. That leads to burnout and more mistakes being made, officers and inmates getting injured, and (as we’ve seen over the past few years) inmate deaths.
At APG, the Army has been offering Voluntary Early Retirement Authority (VERA)/Voluntary Separation Incentive Payment Authority (VSIP) over the last few years. Doing so incentivizes folks to retire or resign, eliminates their position, and helps reduce the need for a reduction in force (RIF.) During this fiscal year (FY14,) one has been offered, and another is about to be announced. This has been a very successful method of reducing workforce size with minimal adverse actions.
Another year to hear the same non-sense from HCG and the CE/County Council. Due to the lower assessments over then last 5 years or more, the homeowner has paid less that what is required to maintain the statutory services required by state law. if you don’t know what that means, then you need to go back to civics class. The county’s administration has played fast and loose with the county’s funds purchasing land, building new schools, prison, office space, landfills and toxic waterfront property with unchecked opposition from the gutless county council– who seems to be busier increasing their own staff and creating other departments. All told, the budgets over the past few years have been built on the backs of deputies, employees and teachers. We have done as best we could with staff reductions, layoffs, retirements and attrition as well as furloughs. Our retirement pension has been changed and new employees (after 2010) can’t even get the same levels of retirement as prior employees. The county is having a harder time recruiting qualified candidates for many positions. The hope is that if older workforce is given an incentive to retire that others waiting to move up will be able to move up the career ladder and newer employees will see some room for promotion in the near future. In my particular divison/department at least 4 employees have left for other local govts or state/federal or private employers because their skill set was appreciated and paid accordingly. The county can’t just not pay a fair wage to staff they trained and certified to have others now reap the benefits? isn’t it kind of stupid to may thousands of $$$ to train and certify staff and have them leave because the CE and the CC don’t seem to have the stomach to actually lead the county and pay its employees a fair wage? If Cecil County can pay its teachers more than HC then folks, we have a problem!
Why not offer the incentive? The Federal Government is doing the very same thing. Its called Voluntary Early Retirement Authority (VERA)/Voluntary Separation Incentive Program (VSIP.) These programs give agencies authority to let someone retire early (with a pension reduction for each month they go out in advance of their minimum retirement age – VERA.) And, depending on age and years of service, get up to a maximum $25,000 cash incentive – VSIP. The Army at Aberdeen Proving Grounds, after moving a gajillion people down here from NJ as part of BRAC, is now offering these incentives to meet mandated personnel reductions. Lots of people are taking these incentives with the idea that the more “older” employees who retire, the less chance there will be a need for a reduction in force (RIF.) RIFs are bad because only the younger employees end up losing their jobs, and the old folks who don’t lose their jobs end up retiring anyway creating a very hollow employment base.
@Walt, you are absolutely correct. Be careful, when I talked about spending within our means, I was called selfish, greedy and not wanting to pay my “fair share” of taxes. Stupidity reigns.
I agree. Stupidity reigns.
@concerned citizen….I guess spending within our means equals 17 trillion in debt, local and state budget shortfalls and the creation of as many new fees (taxes) as can be dreamed up to avoid any ‘new taxes’. If that makes you selfish and greedy for believing there’s got to be a reversal of the madness we need plenty more just like you. A huge freight train can’t stop on a dime or a 200,000 lb cruise ship turn around in a few short feet. The government has got to slow itself down in order to eventually stop the bleeding. Government at all levels needs to control spending even if it inflicts some pain in order to avoid a much more serious pain later. The gentleman that references his 90 year old mom saying this is a walk in the park compared to the great depression is comparing apples and oranges. My mom that recently passed away was 88 and grew up on a farm during those years. When faced with adversity the people of that era pulled together and ‘worked’ their way out of it by expanding the workforce and tax base. Temporary government assistance although necessary at times shouldn’t be a way of life and we can’t through fees and taxes support it indefinitely.
Now that I think about it would David Craig be considered retired this year since this is his last year? Does that mean he can collect this money? Wouldn’t that be convenient for him.
He want to take care of all the faithful family members he hired that will be on the street as soon as a new CE takes office.