County must address retiree costs.

Byline: GUEST VIEWPOINT By Gary Rayor For The Register-Guard

One recent morning as I considered the gyrations of the Board of Commissioners to address Lane County's financial situation, which intruded upon the pleasant drowsiness of a warm spring day, I had a dream. I imagined that the commissioners actually supported equitable use of revenues that delivered services, and did not unjustly use them up within its bureaucracy, by approving a resolution that reads as follows:

In the Board of County Commissioners of Lane County, Oregon:

Order No. 07---, Instructing the County Administrator to cease work on the revenue measures and establish a stable, equitable and justifiable budget for Lane County government.

Whereas, Lane County has recently attempted to enact two (2) local income tax measures to supplement property tax revenue and failed; and whereas the county has unsuccessfully attempted to enact or refer twelve (12) other previous tax measures;

Whereas, Lane County commissioners acknowledge that county employee retirees are exempt from paying local income taxes that provide vital services they use; and acknowledge that this exemption is blatantly unfair and represents systematic favoritism;

Whereas, Lane County commissioners, administrator and staff have been aware of a continuous financial structural deficit in the county budget in that revenues increase at 3 percent per year and costs increase at 6 percent per year; and whereas 80 percent of county costs are employee costs; and whereas much of that cost is current and future benefits such as guaranteed medical benefits after retirement and generous pension costs delivering well over 100 percent of current salary (legacy costs);

Whereas, Lane County commissioners acknowledge that employee legacy costs are the fundamental cause of the structural financial deficit in the county budget that results in severe cuts in services and public health to the poor, and safety services (vital services);

Whereas, Lane County commissioners recognize the need for a fair, justifiable and balanced county budget to fund vitally important public health and safety programs on a long-term basis;

Whereas, the board, county administrator, county counsel and staff have been diligently working on crafting revenue measures that are enabling to the current county budget deficit instead of seriously trying to improve the balance of current and legacy costs; and whereas the board, county administrator, county counsel and staff are content with pursuing the status quo of increasing revenue instead of addressing the structural deficit in the county budget; and that three (3) of the commissioners are longtime beneficiaries of the legacy system as it is and are conflicted in presenting these matters to the public;

Whereas, the board has little confidence in the public's understanding of the time value of money and present worth analysis so that huge legacy costs and unfunded liabilities in county government routinely occur (example: $60 million current unfunded liability for county retiree medical insurance) and will continue to occur;

Whereas, employee legacy costs and unfunded liabilities sap vital services from the needy and represent a serious social justice issue pitting the county against the poor;

Therefore it is ordered, the county administrator, county counsel and staff cease working on enacting or referring additional revenue measures and instead, working through the state Legislature and through county processes, reduce legacy costs of employees to allow funding of vital services;

Therefore it is ordered, that the Lane County commissioners pass a resolution requesting the Legislature to rescind the exemption for public employee retirees from paying local income taxes; and demonstrate to the public that the county is committed to efficiency and fairness;

Therefore it is ordered, that the Lane County Commissioners rescind the salary raises for senior staff and subsidized early retirement unless such time as true legacy costs are determined and measures taken to bring them in line with fairness principles and providing services to the needy;

Therefore it is ordered, that the county administrator enact any layoff to maximally reduce (and hire to minimally increase) legacy costs that sap the county's ability to deliver vital services to the maximum possible extent;

Finally it is ordered, that the Lane County Board of Commissioners will seriously address the public's unhappiness with the built-in inequalities of the current system.

Gary Rayor is an engineer and a former member of the Eugene City Council.