Cabarrus County Reduces Workforce to Respond to Budget Shortfall

February 23, 2010 – An anticipated revenue shortfall of about $6.2 million next fiscal year and economic conditions that preclude tax increases require drastic measures to balance the Cabarrus County budget. Among those measures is a reduction of county staff by 76 positions.

Affected county employees were notified Monday that the positions they filled are now eliminated. Sixty–five employees have been laid off throughout the organization. Eleven of the positions eliminated were vacant. Full–time employees and part–time employees who were laid off and who worked 20 or more hours per week will remain on the county payroll and will receive full benefits for the next 30 days. However, they have been placed on administrative leave and will not report to work. After 30 days, these employees will receive severance pay equal to five months’ salary.

“Unfortunately, there were no other viable options. We knew four years ago that there would be a gap between expenses and revenues in fiscal year 2011. We planned for that in the Five Year Plan by proposing a property tax increase and a sales tax referendum to offset costs of school construction and other capital projects,” said County Manager John Day. “However, with 1,400 foreclosed homes and an unemployment rate of 12.1 percent, we cannot consider a tax increase this year. So, we now must make structural adjustments to the organization to respond to the restructuring of the economy. I really hate that we had to layoff these folks – they’re all fine people and have contributed a lot to the county.”

The eliminated positions were selected based on the service requirements of each county department in an effort to minimize the impact of reduced services and programs administered by the county. Job functions will be spread out among remaining staff members to provide minimal disruption of services to the community.

This reduction in force cuts next year’s projected revenue shortfall by about $2.4 million. Despite a remaining budget gap of about $3.8 million, no more layoffs are expected. Cabarrus County officials are looking for savings in other areas. For instance, county management is exploring alternatives for proposed construction of a satellite campus, and construction of Rob Wallace Park in Midland will be delayed. Furloughs also are being considered. In addition, Cabarrus County is offering an incentive to encourage eligible employees to retire. Those employees in the Local Government Employees Retirement System who retire by December 31, 2010 will receive a lump–sum payment equal to three month’s salary.

It is too early in the budget process to know what other measures will be taken. Cabarrus County must adopt its fiscal year budget by June 30. County staff is developing a proposed budget which will be presented to the Cabarrus County Board of Commissioners for consideration in May.

Cabarrus County is dedicated to providing quality services to residents and community members. Critical county services will remain intact. For instance, the workforce reduction will not affect Emergency Medical Services or the Sheriff’s Office. Other services deemed non–critical have been eliminated or reduced. Cabarrus County will no longer administer the sedimentation and erosion control program on behalf of the state. Instead, this program has been returned to the Mooresville office of the North Carolina Department of Environment and Natural Resources.

In addition, hours of operation at Cabarrus County–operated parks and libraries are now reduced. All Cabarrus County parks will close one hour early. This applies to Frank Liske Park, Camp T.N. Spencer Park, North Cabarrus Park and Pharr Mill Road Park. Weekday operations have been discontinued for the mini–golf course, concessions and paddle boats at Frank Liske Park. These activities will be available April through October on Saturdays and Sundays only. Paddle boats at Camp T.N. Spencer Park are discontinued.

All Cabarrus County libraries also will have reduced hours effective immediately. The Cabarrus County Public Library operates branches in Concord, Harrisburg, Kannapolis and Mount Pleasant. All libraries will close at 7 pm on weekdays. All libraries, except the Mount Pleasant library, will be closed Fridays. The Harrisburg and Mount Pleasant libraries no longer will have Saturday hours. The Concord and Kannapolis branches will alternate Saturday hours. One week the Concord library will be open Saturday, while the Kannapolis library is closed. The next week, the Kannapolis library will be open Saturday, while the Concord library is closed.

**Eliminated positions by category**