County imposes freeze on hiring staff
The Frederick Board of County Commissioners voted Tuesday to freeze all open government positions to deal with a growing budget deficit.
Michael Gastley, the county's budget officer, presented commissioners with a bleak outlook on the nearly 4-month-old fiscal year.
Just three weeks ago, Gastley predicted a
$6 million revenue shortfall for the year, or 1.3 percent of the $446 million budget. Officials then expected the shortfall to worsen, and their prediction is coming true, as Gastley on Tuesday predicted a $7 million shortfall.
To make up that gap, Gastley suggested the county not fill 118 positions it has open, which could save $3 million.
Gastley also said the county has already saved $5 million by cutting expenses and salaries since the fiscal year began on July 1. Those two figures alone would erase the projected gap, and leave $1 million extra in case the gap widens.
Commissioners agreed, and voted 4-1 to accept Gastley's recommendations.
The freeze will allow the county manager's office to meet with division heads in the next several weeks to determine what positions will or will not be filled.
"We also may have to look at programs that we may need to cut," said Board President Jan H. Gardner (D). "Maybe we will not have parks open on Sundays. What I'd like to avoid is furlough days. If someone has to take two weeks of furlough, like they do in Prince George's County, then that's pretty dramatic."
Gardner stressed that no one will be laid off, and applicants who have received a job offer will not be affected by the freeze.
With revenue from property taxes, income taxes and recordation taxes on the sale of homes down significantly from what was projected, the county is faced with a $7 million shortfall.
Taxes make up 91 percent of the operating budget, or $432 million. Gastley now projects the county will bring in $425 million.
The economic conditions have also forced the state to look at program cuts of at least $250 million. Maryland, like other states throughout the nation, is dealing with a sluggish economy, poor home sales and rising unemployment.
This has a direct impact on Frederick County.
State budget cuts will mean less money for county health services, inmate housing at the Frederick County Detention Center and nursing home providers.
"That's three areas that will be impacted by this," Gastley said.
Gardner agreed. "I think we're going to have some impact from the state," she said. "The sooner we do something, the better."
But Gardner stressed that certain positions must be filled. For example, cutting services and employees at the county's 911 center could create delays in responding to emergency calls.
Commissioners are also unsure how the hiring freeze will affect the Board of Education and Frederick Community College, and plan to meet separately with both next month.
Commissioner John "Lennie" Thompson Jr. (R) cast the lone vote against the freeze after his colleagues shot down his proposal to craft the fiscal 2010 budget by giving the Board of Education and Frederick Community College only the money it is required to give.
"You are not doing anything to reel in Board of Education spending," he said.
Gastley also presented commissioners with a sobering financial report for fiscal 2010, which shows little or no increase in revenue over this year.
"We do budget conservatively, but no one could have expected the economy to do what it has done," Gastley said. "I do think having some limitation on hiring is appropriate."
Commissioners agreed. "Unless we're going to collectively raise our hands to increase taxes, then something structurally has to be done," said Commissioner Charles A. Jenkins.
Frederick joins Carroll County, which announced a hiring freeze in September and restrictions on travel for government workers. Commissioners there announced measures to prepare the county for the changes in state funding.
New employees who are in their probation period will have that extended by six months. However, they can still use their annual and sick leave, and employer contributions to 401(k) plans will not be affected.
All travel for training and conferences will be restricted to the mid-Atlantic region, and take-home vehicles will be restricted to in-county use.
The county's 26 positions will not be filled, resulting in a savings of $553,079.