To: Board of Supervisors
From: Executive Office
Meeting Date: July 10, 2018
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Department Contact: |
Carmel J. Angelo |
Phone: |
463-4441 |
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Item Type: Regular Agenda |
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Time Allocated for Item: 30 Mins |
Agenda Title:
title
Discussion and Possible Action Regarding Report Clarifying the Timing and Possible Adoption of a Hiring Freeze
(Sponsor: Executive Office)
End
Recommended Action/Motion:
recommendation
Receive report clarifying the timing and possible adoption of a hiring freeze; and provide direction as appropriate.
End
Previous Board/Board Committee Actions:
On June 22, 2018, the Board of Supervisors requested an agenda item regarding the possible adoption of a hiring freeze.
Summary of Request:
During Budget Hearings on June 5-6, 2018, the Board of Supervisors directed that Juvenile Hall be kept open with an approximate net county cost (NCC) of $1.2 million that was not included in the Proposed Budget. The Board further directed that the shortfall be covered primarily by increasing the assumed vacancy rate for most General Fund departments from 5% to 10%, for a projected reduction in NCC of $900,000. In order to assure sufficient salary cost savings to maintain a balanced budget, CEO Angelo announced her intention to impose a limited hiring freeze with all hiring decisions referred to the Executive Office for review and approval with the understanding that "mission critical" positions would be approved. Although department heads were notified of the decision to adopt a hiring freeze, it has not been implemented to allow posted positions to be filled and for department heads to determine mission critical positions.
Following Board action to request an agenda item to discuss the possible adoption of a hiring freeze, the Executive Office requested additional information from Human Resources and held discussions with affected department heads. At this time the Executive Office has not obtained definitive information on the current vacancy rate, the fiscal implications of increasing the assumed vacancy rate, and the savings to be realized by a hiring freeze. Without this information it is not possible to predict if a hiring freeze is necessary to achieve a balanced budget.
Staying within budget, particularly for a major line item such as salary, remains a paramount goal. In recent years the amount of remaining fund balance has been declining based on tighter budgeting and increased employee compensation. However, it is anticipated that there will be a year end fund balance that will help offset any shortfall in the savings from increasing the assumed vacancy rate. Additionally, on June 6, 2018, the Board appointed an ad hoc committee to meet with representatives of the judicial system and other stakeholders to identify potential cost savings associated with operating Juvenile Hall. The Executive Office is cautiously optimistic that this process may result in additional savings in NCC.
Therefore, based on the above factors, the Executive Office recommends that a hiring freeze not be implemented at this time and that discussion of the issue be deferred until the First Quarter Budget Report when more information will be available.
Alternative Action/Motion:
Do not defer hiring freeze; provide additional direction as deemed appropriate.
Supplemental Information Available Online at: N/A
Fiscal Impact:
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Source of Funding: N/A |
Budgeted in Current F/Y: N/A |
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Current F/Y Cost: N/A |
Annual Recurring Cost: N/A |
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Supervisorial District: All |
Vote Requirement: Majority |
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Agreement/Resolution/Ordinance Approved by County Counsel: N/A
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CEO Liaison: Steve Dunnicliff, Deputy CEO |
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CEO Review: Yes |
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CEO Comments:
FOR COB USE ONLY
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Executed By: Meribeth Dermond |
Final Status:Approved |
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Date: July 10, 2018 |
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