June 10, 2009 — Lay-offs, shortened work weeks, and business closures have hit private and public sectors.

In Rogers County, no formal lay-offs or shortened work weeks have been announced for county employees, but county commissioners are looking at ways to tighten the budget belt for the upcoming fiscal year due to start July 1.

Monday, commissioners said they would look at employee versus employer retirement contributions.

Commission Chair Mike Helm suggested at Monday’s Board meeting a pay increase could remain in the cards if the employee to employer contribution to the Oklahoma Public Employees Retirement System (OPERS) is changed.

“Most employees look for money now in their paychecks, not at retirement,” said Helm. “There are 11 different options to go with and the Board has to decide.”

Helm purposes reducing the percentage of matching funds going into the retirement pot. Currently under the OPERS plan, a total 18-percent contribution is required. Next year that will increase to 19-percent with the eventual goal to reach 20-percent total contribution.

Canadian County Clerk Shelly Dickerson said these step increases have been in the works over a course of five years.

Next year, Canadian County will step down to an “L” option with employees contributing 5-percent and the county contributing 14-percent. with a starting clerical salary of $28,000 contributes less. This year, Canadian County put in 3.5-percent with employees putting in 4.5-percent. Dickerson said the county has gradually made the changes to allow employees to adjust.

“The county can’t afford to always pick up the increase,” said Dickerson.

Currently, Rogers County is in OPERS code “P” with an employee contribution rate of 3.5-percent and an employer contribution rate of 14.5-percent.

Under code P, that would increase to a 15.5-percent contribution by Rogers County next year.

Helm said private sector employers do not match retirement funds at the rate of 5-to-1 and Rogers County may have to reduce the employer contribution percentage rate due to a decrease in anticipated revenue this coming fiscal year. DeLozier and Thacker agreed to look into the matter.

Comanche, Creek and Payne counties also pay in 14.5-percent to an employee contribution of 3.5-percent. Those counties will absorb the 1-percent increase next year, staying on the P code and increasing their contributions to 15.5-percent. Under the state plan, total contribution for 2010 must equal 19-percent.

“As long as we can afford it, we’ll do it for our employees,” said Comanche County Commissioner Ron Kirby.

Comanche County starts employees at a base rate just over $23,000 annually.

Muskogee County contributes less than Rogers County. On the “N” schedule, Muskogee pays in 13.5-percent to the employees’ 4.5-percent contribution.

In the coming fiscal year, the Muskogee County will increase to a 14.5-percent employer contribution.

“Some of these counties can contribute more because they pay less,” said Helm. “Rogers County pays very well.”

At the federal level employees who civil participants in the Federal Employees Retirement System (FERS) can contribute to a retirement plan known as the Thrift Savings Plan. There are a variety of options available through that plan but federal agencies only match up to 5-percent of employee contribution dollars. Federal employees on average may earn more and have better benefits than state and county employees.

Rogers County employs around 213 full-time people. A 2-percent decrease in employer contributions could result in a savings of around $153,000 annually, but should such a change be made, it will not be made lightly.

Commissioner Dan DeLozier said he intends to fully investigate the issue before making a decision next week. With June coming to a close, the clock is ticking on the time left available to make any changes.

Commissioner Kirt Thacker said he does not want to speculate on the possibility of a raise for county employees until he has seen the budget numbers for this year. He is looking at the retirement contribution but is leaning against changing the employee contribution rate at the current time.

“I’m looking at it. If it’s going to take money out of the pockets of employees, my gut reaction is I wouldn’t do it,” said Thacker. “Any economy is a bad economy to take home less money, especially now. From what I’ve looked at so far, I’m not in favor of the change.”

Thacker said in past budgets, county officers have acted in an fiscally conservative manner.

“Rogers County is better prepared for a rough economy than some other industries,” said Thacker. “County officers have done a good job in being conservative when the economy was good.”

No reduction in employee numbers is likely in the near future.

“County employees are citizens, exactly the same as any other citizen,” said Thacker. “At this point I don’t see us having to make cuts in payroll. We’ll cut other things before we start cutting people.”

ANTICIPATED REVENUE

DeLozier said one-cent sales tax collections have been down the past two months.

One cent funds are marked for road and bridge improvements, but that funding means other revenue sources can be spread more liberally across the county budget.

If one-cent collections decrease, other sources may have to make up the difference.

Sales tax is down in Claremore, a major collection point for sales tax in the county. Verdigris has held steady and Catoosa had continued to climb in sales tax collections.

Commissioners also receive funding for unrestricted highway accounts through the tax dollars collected primarily on fuel. With fuel prices dropping those dollars are likely to decrease as well but savings on asphalt and fuel may compensate for that decrease.

A small percentage of ad valorem taxes goes into the county coffers also. When a business closes down in Rogers County, that’s lost ad valorem tax.

Miscellaneous collections such as court and county clerk fees also fund the county. Those collections usually run well over $1 million annually in Rogers County. That revenue is much less likely to be affected by the economy.

Matching funds for bridges and other projects are also available through several state and federal programs. Added to that this year are potential dollars through the American Recovery and Reinvestment Act.

While figures for projected revenue have not been discussed yet in the county commissioner’s meeting, Helm said there is a need to increase the number of deputies in the Rogers County Sheriff’s Department. He said a change in the employer contribution level might be the funding needed to hire more deputies.