Cities cutting from bottom while adding 6-figure salaries at the top
By Phillip Reese and Loretta Kalb, Sacramento Bee
Several local cities sliced their payrolls through layoffs last year by cutting those who made the least. And they ended up paying more employees six-figure salaries.
The 3,800 employees who earned at least $100,000 annually last year made up 10 percent of the region’s city and county workers, but ate 25 percent of payroll. Their ranks increased by about 80, while the number of city and county workers earning less than $100,000 fell by almost 3,000, according to a Bee review of new data from the state controller’s office.
The trend was not universal. Cities such as Davis, Rancho Cordova and Elk Grove reduced the number of their workers earning six figures.
But the city and county of Sacramento collectively increased the total amount paid to six-figure employees by $23 million, or 9 percent, while cutting 1,800 workers from their payrolls.
“Somehow that doesn’t surprise me,” said Tana Taylor, who was laid off from her job as an office assistant in Sacramento County’s Department of Health and Human Services last year. “Higher-end people – they seem to be hanging in there.”
Several city and county leaders said the trend was largely unavoidable due to labor contracts and minimum staffing requirements. Many had to lay off employees based on tenure – and give the remaining employees raises due to their contracts.
For example, the number of county of Sacramento employees under 30 – most of them low earners – fell by 50 percent, to 900, from 2007 to 2010, according to actuarial documents from the county retirement system. During the same period, the number of workers over 30 declined by just 4 percent.
“Workers that were able to stay had higher seniority and are at the higher wage scale,” said Chris Andis, a spokeswoman for the county of Sacramento.
The trend also reflects politics and priorities. About 45 percent of the region’s municipal six-figure earners are cops and firefighters, and several cities chose to limit public safety cuts in favor of reducing staff in parks, health care and social services, where fewer highly paid employees work.
“Instead of monitoring labor costs, pay rates, and pension costs in response to the recession, they’re instead laying off the junior workers in the city who are often the most productive,” said Craig Powell, president of Eye on Sacramento, a local civic watchdog organization.
Author failed to list South Lake Tahoe with the examples cited. It is absurd that this city has so many 6-figure salaries, while cutting service level employees. These upper management people are providing so-so service (sarcasm), yet keep their jobs.
On full Bee story it has SLT in the chart, but the salaries are not current. What is the city hiding? Why aren’t current salaries posted?
There is no doubt that government salaries are generally too high. Their retirement benefits are unsustainable and both are out of line with the median for our area. What is important is what courage will be shown by our elected leaders to FIX the problem. We citizens must DEMAND that they actually address the problems and FIX them without silly gimmicks like “privatization” of critical services while keeping the management pay structure. FIX THE PROBLEMS! The alternative is to eliminate the duplicate agencies like police, fire and snow removal, consolidate these services into one group, likely the County. Why do we need a City of South Lake Tahoe? What necessity has it provided for the citizens? I would love to see any response from the City Management that can defend their existence.
Why shouldn’t the ruling class be allowed to live high on the hog.
I somewhat agree with Dumbfounded. I think the Council should be an UNPAID position with only minimal stipends paid to a City Manager & City Attorney. These whopping pay/benefit packages for those 2 positions are way out line. And why do the same people get re-elected time after time & continue their historically failed policies while giving themselves huge raises & eliminating those who actually do the work? This continues to smell a lot like the City of Bell.