California County News

Travel Reimbursement for NACo Conference Proves Contentious in Mendocino; Funds Denied

As his latest cost-cutting measure, Governor Jerry Brown recently issued an executive order that banned all non-essential travel by state employees.  Included under the ban’s terms was attendance at conferences, networking opportunities, professional development courses, continuing education classes. On a related note, the issue of travel expenses became rather heated in Mendocino County recently when the board debated reimbursing 4th District Supervisor Kendall Smith for her attendance at a National Association of Counties conference in Portland, Oregon during the month of July. One a 3-2 vote, the Board of Supervisors ended up denying Smith the $1,500 of travel reimbursement. Both county CEO Carmel Angelo and Smith were the opposing votes, but supporters of denying the funds argued that the county could not spare the expense. On the flip side, concerns were raised that the county needed lobbying representation: The Ukiah Daily Journal reports:

“[CEO Carmel] Angelo reminded the board that the body dismissed the county's state and federal lobbyists to cut costs. ‘There is nobody that's advocating or lobbying for Mendocino County these days but Mendocino County,’ Angelo said. Third District Supervisor John Pinches questioned the benefit of NACo membership, saying the organization is more about its own internal workings than about lobbying. Angelo said the board had already agreed its NACo membership was important when it voted to continue the membership during last year's budget hearings.”

Officials disputed the level of representation they were already receiving and whether or not it was currently sufficient for meeting the county’s needs. Supervisor Smith also pointed to other counties’ efforts to increase their lobbying presence. However, the vote to deny funds primarily stemmed from the need to find 5 percent in cuts for the board’s budget, which has not been an easy feat. For more, see here.

Amended Realignment Bill Eases Counties’ Financial Burden Prior to Prison Transfers

An amended budget bill is set to go before the governor that would lower the amount that counties have to pony up in order to tap into state jail-construction money. Originally, under the terms of AB 94, counties would have had to shell out 25 percent of a jail’s costs, but now jail financing can be arranged at 10 percent of the overall cost. The ease in financing is to ensure that local governments can take on extra prisoners as part of the governor’s realignment plans, which will send some state offenders to county facilities. Each county will be capped at accessing $100 million. It is expected that around 40,000 state inmates will be shifted to the control of counties, and jail financing is sure to be vital for providing extra capacity when one takes into account that many prisons are already overcrowded. The Press Enterprise reports the following on the funding:

“The money is part of $1.2 billion in jail financing the Legislature approved in 2007. It would help build new county jail beds as the governor seeks to shift several state responsibilities to counties, including oversight of some lower-level convicts and parolees. Supporters say counties need more money to handle so many new inmates but are struggling to come up with the matching money as their economic fortunes have fallen amid the recession. Assemblyman Bob Blumenfield, D-Sherman Oaks, chairman of the Assembly Budget Committee, called the legislation a technical clean-up bill. About half the funding from the 2007 bill, AB900, has been awarded to 11 counties that agreed to match a quarter of the cost. Those counties cannot reapply for the 10 percent rate if they have spent any of the money.”

San Bernardino County is one of the counties that originally applied to receive $83 million in funding from the 2007 bill. However, officials in San Bernardino are upset that the newest bill won't refund the county the difference between a 25 percent match and a 10 percent match, which amounts to about $16 million. Read more here.

Former DA Sues Del Norte County over County Administrator’s Letter Alleging Misconduct

Back in the fall of 2009, Del Norte County’s Chief Administrator at the time, Jeanine Galatioto, wrote a letter to former District Attorney Mike Riese. The letter alleged that Riese’s behavior and conduct had been inappropriate for the workplace and went so far as to claim the DA was violating the county’s ‘Drug Free Workplace’ policy. The letter concluded that Riese should “avail yourself of a voluntary leave of absence until such time that you are medically well enough to resume your administrative duties as District Attorney.” In an update, Riese has filed a lawsuit against the county, which claims that the former DA was unfairly portrayed in a negative light through false assumptions, that his privacy was invaded, and that he was forced to endure emotional distress and defamation. The Triplicate reports:

“Due to the disclosure, Riese was ‘scorned and abandoned by former friends, supporters, exposed to contempt and ridicule and suffered loss of reputation and standing in the community, all of which caused him humiliation,’ stated the lawsuit. The suit also alleges that disclosure of the letter cost him votes in his bid for re-election last year. Riese finished third in the June primary in an election eventually won by Jon Alexander. […] Galatioto’s two-page letter to Riese was also sent to each member of the Board of Supervisors and Sheriff Dean Wilson. Riese acknowledged during a candidates’ forum hosted by The Triplicate last spring that he should have taken a respite from office. ‘I got sick, like any human being,’ said Riese during the forum.”

In 2010, Riese wrote an op-ed criticizing the release of the letter by calling it a legally protected document. You can see the op-ed here.

Downsizing: San Joaquin Supes Approve Merging & Reorganizing Departments to Cut Costs

With a smaller staff and a shrinking budget, San Joaquin County officials have opted to do a bit of shuffling to streamline government operations and organization. As a result, proposals are in the works to consolidate and merge county departments to cut costs. Over the past few years, the county has lost about 14 percent of its work force (850 positions) due to budget woes, and officials only expect that number to grow. In light of projected shortfalls, it is hoped that merging departments will be more cost efficient and has been deemed a multi-year approach. The Record reports on the following changes:

“The shift will put the Veterans Services Office into the Health Care Services Agency. […]
Emergency Services will be split in two. Its hazardous-materials division will go into Environmental Health, while the disaster-response branch moves to the newly created General Services Department. The new department will also encompass what are now Facilities Management, and Parks and Recreation. County Animal Control, currently part of the Agricultural Commissioner's Office, moves to the Sheriff's Office; and the Registrar of Voters' Office will be part of Information Systems.”

Most of the departments impacted by the changes are on the smaller side. Supervisors approved the mergers on a unanimous vote. For more on the shifts, see here and below:

Best Paid Deputies: San Mateo Supervisors Approve Contract Guarantees Over Salaries

San Mateo County supervisors have approved a five-year contract agreement with the county’s 352-member Deputy Sheriff's Association that asserts the deputies are guaranteed to earn compensation at least 1 percent higher than the salaries of all of deputies in eight other Bay Area counties. Notably, San Mateo County sheriff's deputies already have salaries that are 7 percent higher than other deputies in the region and the agreement also notes that deputies will receive a 3 percent pay raise in 2015. In the past the deputies were guaranteed to receive pay that was 3 percent higher than deputies in other Bay Area counties. Critics of the agreement are sure to point to the county’s troubled finances as cause for dispute. Mercury News reports:

“According to salary data provided by the county, the average full-time San Mateo County sheriff's deputy was paid nearly $135,000 last year. Some candidates running in Tuesday's special election for an open seat on the Board of Supervisors said in light of the county's $83 million budget deficit, it was wrong to include a raise in the agreement, even if it's three years out. ‘The Board of Supervisors cannot give raises now or promise to grant them in the future,’ said candidate Dave Pine, a former high-tech industry lawyer. "This is a classic case, which is too common in government, of making a financial commitment without a known source of funding to pay for it.’”

Other candidates running for the vacant seat were also critical of the contract agreement. Officials from the county defended the move by noting that deputies have a dangerous job and that the pay freeze until 2015 will save the county $2 million annually. For more, see here.

Riverside Board Votes to Quiet Public Discussion of Ongoing Labor Talks

Riverside County Supervisor Jeff Stone has been a vocal proponent of pension reform and we relayed recently that he hit the road this month to host a town hall meeting on the costs of retirement benefits. We noted that high school students in attendance got to see first-hand the contentious nature of such a subject, as members of two of the county's largest unions were in attendance to counter many of the supervisor’s arguments about the need for concessions. In an update, Riverside Supervisors have just approved a statement on a 3-2 vote that says supervisors should avoid publicly discussing the details of ongoing labor talks. Was Supervisor Stone the target of such a position? Stone has said he believes that is the case and deemed the statement unfair and unconstructive. Stone stated, “We need to help people filter through the barrage of rhetoric and propaganda that is designed to discredit those who want to protect the public treasury and adopt a pension system that is commensurate with these economic times.”

The statement outlines that supervisors will only engage in talks on the issue through formal negotiations with the county's employee unions. The position also notes that officials are to avoid making “public demands that should occur at the negotiation table.” Supervisors Jeff Stone and Bob Buster voted no on the statement, as both have been vocal about the need for reforms. The Press Enterprise reports the following on the intentions from the position’s supporters:

“But supervisors John Tavaglione and John Benoit, who co-sponsored the statement, said there is no attempt to muzzle the board. ‘We sometimes comment on issues that should in fact be done at the table, be done through the collective bargaining process,’ Tavaglione said. ‘I am as guilty as anyone.’ Tavaglione said the statement sends a message that the county is working on the pension changes in a professional manner through the county's labor negotiator. ‘There is no intent here to muzzle the Board of Supervisors from making comments in general about where we need to go in terms of pension reform,’ Tavaglione said.”

County officials are reportedly working on an agreement for a two-tier plan. For more, see here.

SBDO Supervisor Charged with 3 Criminal Counts; Failed to Report Contribution

San Bernardino Supervisor Neil Derry has been charged with three criminal counts due to allegations that he "knowingly and willfully" failed to report a $5,000 campaign contribution. The charges were filed by the Attorney General’s office and two charges are considered felonies (perjury and filing a false report) and one charge is considered a misdemeanor (failure to report a campaign contribution). The charges are the latest news in a corruption case that has been ongoing in San Bernardino County. The crux of the case appears to be the allegation that the campaign contributions were laundered through a political action committee. The PAC was under the control of former San Bernardino County Supervisor William Postmus, who has stated that Derry was culpable in a laundering scheme. The LA Times reports:

“Postmus pleaded guilty in March to three corruption charges and agreed to cooperate in an ongoing investigation in San Bernardino County. According to the declaration, Postmus told investigators that he agreed with Derry and one of his campaign aides to ‘launder’ $5,000 to $10,000 in contributions intended for Derry through the Inland Empire committee. ’Postmus understood that Derry did not want to take ... these contributions directly to his campaign,’ state Department of Justice Special Agent Shannon Williams said in the declaration. A spokesman for Atty. Gen. Kamala Harris said Tuesday that Derry could receive a maximum sentence of four years in state prison if convicted. The attorney general was planning to forward evidence to the state Fair Political Practices Commission for possible administrative charges, the spokesman said.”

Derry will have to report to San Bernardino County Superior Court on June 9 and he was not arrested. Board Chairwoman Josie Gonzales called the case “disturbing.” More info here.

You can read the charges against Derry here.

A declaration in support of the complaint can be seen here.

States Look to Prevent Municipal Bankruptcy Filings w/ Legislation; Infringes on Local Control?

It has been reported that $20 billion is the combined shortfall that cities across the country will face this year. Amidst great budget woes, efforts are playing out in several states to approve legislation that would require a state to intervene in order to help a municipality avoid bankruptcy. In Indiana, state Senator Ed Charbonneau has introduced such legislation so that cash- strapped cities receive support. Commenting on the bill, Charbonneau stated that “We’re putting a process in place with the intent of avoiding the need for bankruptcy. The whole purpose of it is to try to get fiscal help to distressed local units of government so they can correct their situation before any need for bankruptcy would arise.” Bloomberg News points out that states like Indiana and California are considering legislation in the aftermath of the 2008 bankruptcy in the city of Vallejo, which has led to an onslaught of legal costs, layoffs, and continued fiscal issues. Bloomberg reports:

“In Michigan, Governor Rick Snyder, a Republican, signed a law last month empowering a state-appointed emergency manager to renegotiate a city’s contracts, sell assets and set minimal staffing levels. The Michigan managers will develop a financial and operating plan for a distressed local government that includes meeting scheduled debt service on all bonds, notes and municipal securities, making pension-fund contributions and changing, rejecting, ending and renegotiating contracts. The bills aim to protect states from the harm to their credit ratings that could result from a municipal bankruptcy, increasing their borrowing costs, said James Spiotto of the Chicago-based law firm Chapman and Cutler LLP.”

The legislation that has been introduced in Indiana would also require the appointment of an emergency manager who would wield great power over the city’s operations and finances, such as pay cuts, renegotiating labor contracts, and suspending salaries. Legislation in California would require mediation to take place in order to see if contracts can be renegotiated before a city can file for bankruptcy.

Back in March we relayed info on our sister site CA City News about the imposition of financial martial law in Michigan, which meant state auditors would be able to void municipalities' union contracts and even dissolve local jurisdictions. For a refresher, see here.

Report Card: California Counties Graded Poorly for Air Quality by the ALA

California leads the way in the latest rankings from the American Lung Association's air quality report card, but not in a good way. So what’s the Golden State’s latest claim to fame? Our counties top the list for some of the worst air quality in the country. According to the vice president of national policy and advocacy for the ALA, there are millions of people who live "where the air is dirty enough to send people to the emergency room, dirty enough to shape children's lungs and cause deaths." That being said, the state’s overall air quality has improved slightly. American Lung Association in California president and CEO Jane Warner commented that “Air pollution is making people sick and cutting lives short.”

Here are the top ten most ozone-polluted counties:

1. San Bernardino
2. Riverside
3. Kern
4. Tulare
5. Los Angeles
6. Fresno
7. Sacramento
8. Kings
9. El Dorado
10. Nevada

You can view stats and grades for each county here, as well as info about particle pollution and groups at risk. You’ll notice that many counties have received an F grade.

The Trillion Dollar Gap: PEW Report on the Recession’s Impact on Pension Funding

The PEW Center on the States has released a new report that analyzes states' funding of pensions and retiree health care. Entitled “The Widening Gap: The Great Recession’s Impact on State Pension and Retiree Health Care Costs,” the report shows how retirement systems were greatly impacted by the recession, evident by data from 2009 and 2010. Notably, in the course of one year, there has been a 26 percent increase in the gap between the promises states have made for public employees’ retirement benefits and the money set aside to pay for them. The gap is so large that it grew to $1.26 trillion in fiscal year 2009. In addition, 31 states were below the 80 percent funded threshold in fiscal year 2009. California’s pension liability is listed at $490,585,000 and is considered 81 percent funded. Susan Urahn, managing director for the Pew Center on the States, commented the following on the report’s findings:

“In many states, the bill for public sector retirement benefits already threatens strained budgets, and is competing for resources with other critical needs, including education, infrastructure and health care. The $1.26 trillion shortfall for pensions and retiree health care will drive up annual costs and make already tough budget decisions even tougher. […] A significant number of states are trying to deal with the bill coming due for their employees’ retirement benefits head on,” said Urahn. “Given the size of the problem and the challenges of reform, there are no quick fixes. But there is considerable momentum for change.”

Highlights from the report include the following:

• “Pension funding shortfalls accounted for $660 billion of the $1.26 trillion gap, and unfunded retiree health care costs accounted for the remaining $635 billion.
• States had only about $31 billion, or 5 percent, saved toward their obligations for retiree health care benefits.
• State pension plans were 78 percent funded, declining from 84 percent in 2008.

Read the full report here.