Daily Archives: March 21, 2014

2009-2010 City of El Segundo Separations due to Budgetary Reasons Mostly Early Retirements

by Michael D. Robbins
Director, Public Safety Project, PublicSafetyProject.org

March 20, 2014

Mayor Bill Fisher Continues his Campaign of Deception as He Runs for Re-Election

El Segundo Mayor Bill Fisher wants voters to believe he reduced the City’s wildly excessive and unsustainable employee compensation costs by reducing City employee salaries by significant amounts. He also wants us to believe there were substantial numbers of City employee layoffs. These are not true.

Fisher supported wildly excessive pay raises of 11.25% to 32.3% over three years for the already overpaid firefighter and police unions and their managers. These raises were approved by the City Council on April 7, 2009 and December 2, 2008, long after the Great Recession began, and include retroactive raises effective 6 and 9 months before they were approved on April 7, 2009. These raises were in addition to the automatic 5% “Step” raises firefighters and police are given each year for the four or five years after they year they are assigned to a new job position.

See City of El Segundo Can Save $3.3 Million Per Year in Employee Pension Costs for more details and documentation on those raises.

City employees received huge permanent pay raises, but most of their “concessions” were temporary, with the net result being increased employee compensation and increased pension costs to the City. Concessions included things like temporary one-time “unpaid” furlough days, which are like unpaid vacation days, and temporary suspension of cash-outs of accumulated unused vacation and sick leave hours. The firefighters and police were paid “Special Compensation” for those “unpaid” furlough days, which averages 33.5% of their regular earnings.

The alleged “reductions in salary” were achieved by temporary unpaid furlough days, temporary suspension of cash-out of accumulated unused vacation and sick leave hours, temporary reduction in overtime hours in 2010, and early retirements – many of them with lucrative and expensive incentives. No employees had their hourly pay rates reduced.

There were 26 City employee separations in 2009 and 2010 for budgetary reasons, and only 5 of those were layoffs. The rest were early retirements.

The employee separation data is shown in the following table … Continue reading

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