COMMITTEE ON BUDGET AND APPROPRIATIONS

MINUTES

JUNE 16, 1997

3:00 P.M.

B & A MEMBERS: Swanson, Wishnie, LaMotte, Darcy, Young, Delfino, Abinanti

OTHERS: C.E.’s Office: Jamie Hastings-Director of IGR, Gina Angiulo-IGR; Budget: Joe Phelan-Director; Personnel: Tony Giambruno, Betty Wallace; LWV: Anne Nelson; CBAC: George Hosey, Barbara Strauss; BKS: Les Storch, Nick DeSantis; BOL: Legislator Carsky, Legislator Stewart-Cousins; Dan Rodriguez, Robert J. Boland-Budget Analyst, Glenn Guzi-Program Specialist, Tina Seckerson- Secretary to Committee

Co-Chairs Swanson and Wishnie called the meeting to order at 2:20 p.m.

DISCUSSION: (There is a cassette tape on file for more detailed information)

On motion of Legislator Darcy, seconded by Legislator Young, the motion to approve the Minutes of June 9, 1997 was carried by a vote of 7-0.

5. COUNTY EXECUTIVE: Proposed Act authorizing the County to enter into an

IMA with the City of New York to accept a federal grant from the Housing Opportunities for Persons with AIDS Program for fiscal year 1997. (6/2/97) (Also referred to CA)

• This item was jointly referred to the Committee on Community Affairs and was signed out by that Committee earlier today.

On motion of Legislator Darcy, seconded by Legislator Young, the motion to approve this item was carried by a vote of 7-0.

COMMITTEE ON BUDGET & APPROPRIATIONS

MINUTES - JUNE 16, 1997

PAGE 2

9. COUNTY EXECUTIVE: Acceptance of a gift from John and Brenda Fareri of a temporary, one-story building at the Westchester County Medical Center to be used as a Development Center for the Children’s Hospital. (6/2/97)

• Mr. Darcy requested that this item remain on the agenda until there is assurance that there is a C.O. for the building

8. COUNTY EXECUTIVE: Proposed Local Law enabling employees of the County and Westchester Community College to participate in an Early Retirement Incentive Program. (5/19/97)

• Public Hearings set for Monday, June 16th at 7:30 p.m.
• 20 people are not eligible - 17 Legislators and other elected officials
• Mrs. Swanson asked how many people Personnel anticipates will take early retirement. Mr. Giambruno stated that 1600 people are eligible, which is 200 more than last time, and they anticipate 150 people will take advantage of it.
• Mr. Giambruno stated that traditionally most employees leave at the end.
• Mrs. Swanson asked how the windows were arrived at. Mr. Giambruno stated that the Westchester Community College Board asked for this date (July 18-august 31) because it coincides with their fiscal year as well as the beginning of the school year.

On motion of Legislator Delfino, seconded by Legislator LaMotte, the motion to approve the Early Retirement legislation for WCC was carried by a vote of 7-0.

On motion of Legislator Delfino, seconded by Legislator Swanson, the motion to approve the Early Retirement legislation for county employees (with the exception of WCC) was carried by a vote of 7-0.

COMMITTEE ON BUDGET & APPROPRIATIONS

MINUTES - JUNE 16, 1997

PAGE 3

28. COUNTY EXECUTIVE: Proposed Act amending the County Pay Plan (various titles). (4/21/97)

• Mrs. Swanson requested an explanation of the proposed deletion of the title of Deputy Commissioner of Engineering - DPW. Mr. Giambruno responded that it is a title change, a clean-up, as the person in the position does not really do engineering but serves as a Deputy Commissioner for Public Works. He stated that it is a defunct title - it was a title of convenience at the time when the person was hired, therefore, the title will be changed to Deputy Commissioner of Public Works. The old title is exempt but the new title has to be listed as competitive until it is approved and then it can be given exempt status by the state.
• Mr. Darcy inquired as to who supervises the engineers within the department. Mr. Giambruno explained that the engineers are supervised by the First Deputy of DPW who is a P.E.
• The Deputy Commissioner of DPW manages Capital Projects for which one does not have to be an engineer.
• Mrs. Swanson expressed her concern that when the title is changed and the Deputy Commissioner is no longer required to be an engineer then the First Deputy Commissioner and the Deputy Commissioner will no longer be inter-changeable.
• Social Services - Manager I, Manager II & Manager III - total of $261,995. Mr. Giambruno explained that this is reimbursable by both the state and feds (50%, 25%, 25% reimbursement). Mr. Giambruno explained that these three titles were evaluated - their span of control, and their scope of duties have changed over the years. He further stated that they are not classified appropriately and should be at a higher level. This is not a raise, when you compare their duties across the board within the county as well as outside of the county, they are being underpaid. Mr. Abinanti stated that it could also be due to the fact that the people above them should be doing this work. Mrs. Swanson asked if it is correct that this part of the pay plan amendment ($261,955) will have no increase in tax levy. Mr. Phelan stated that there is an increase in cost, but in 1997 the department is saving that much money. According to Mr. Phelan the cost of this tax levy, for DSS is around $65,000 and is being saved in the 1997 budget so there is no additional spending. Mrs. Swanson asked if the Budget Committee will be asked to transfer that $65,000. Mr. Phelan responded they will not.

COMMITTEE ON BUDGET & APPROPRIATIONS

MINUTES - JUNE 16, 1997

PAGE 4

• Mr. Darcy asked what the average percent of increase these 44 people will receive. Mr. Giambruno stated that they are going up one grade. Mr. Giambruno replied that you would only be looking at percent of increase if you were dealing with a raise and this is not a raise but instead compensating people appropriately for the job they are doing for the County.
• Mr. Darcy stated that this matter should be taken up with the next budget discussions in order to see the total impact of what is going on here in relation to the total budget. Mr. Giambruno suggested that the next time a contract comes it be turned down until language like that is in the contract and then it will be okay. This is contractual language. These can be turned down on an individual basis, but Mr. Giambruno stated Personnel has an obligation to review each request made and make a determination.
• Mr. Wishnie inquired as to how many requests are made and how many are approved/denied. Mr. Giambruno stated that for every 100 requests 58 are denied.
• Mrs. Swanson asked about the changes being made in the Budget Department. Mr. Phelan stated that there is one existing XVI position being "traded in" for two Grade XV positions - with no increase in positions. There are currently 4 Grade XIV positions in the Budget Department of which 3 will be kept and one will be upgraded to a XV.
• Mr. Phelan stated that this is the first and only reorganization for the Budget Department since 1983. Since 1983 there have been a huge number of changes by the federal government in the area of arbitrage. They now have to track capital projects to match off spending against bonding so that they don’t pay arbitrage which has caused an enormous increase in labor and time within the Budget Department.
• The Committee will discuss the Pay Plan Amendment further before taking any action.

• Mr. DeSantis explained that the baseline for how this plan was developed was the adopted 1997 Budget. Some of the recommendations they made, which were not included in the 1997 budget, are included here as adjustments which they hope will have a positive impact at the conclusion of 1997. He stated that they have not had any discussions with the Budget Director since February so there may be some changes with regard to the 1997 budget.
• BKS is projecting that the 1997 budget should have $7 million of budget slack in it.

COMMITTEE ON BUDGET & APPROPRIATIONS

MINUTES - JUNE 16, 1997

PAGE 5

• Mr. Wishnie asked how the auditor’s recommendations in sales tax, hotel tax, and motor vehicle tax turned out. Mr. Storch stated that the sales tax came in right at their expectations. Sales tax for 1996 was $200,472 and the auditors’ number was $199,800. Mr. DeSantis stated they used $4.1 million for the Motor Vehicle tax and it came in at $3.972. The Hotel Tax was right on target.
• The Committee asked for the 1996 surplus figure. Mr. Phelan stated that the number has not yet been finalized.
• BKS is projecting $27.6 million for 1998 and $32.9 million for 1999 Hospital Sponsor Contribution.
• Mrs. Swanson asked Mr. Phelan for the WCMC Sponsor Contribution number for 1997. He replied that there are two numbers; $22 million and $25 million. The arithmetic summary of the Hospital Budget (after adds, vetoes and deletions) is $22 million. The Miscellaneous Budget is $25 million. Mr. Abinanti reiterated that there is $25 million set aside in the Miscellaneous Budget while only authorizing an expenditure of $22 million - leaving a $3 million surplus in there. He asked if a budget transfer would have to be made to expend the $3 million. Mr. Phelan responded that it would.
• Departmental Revenues: Increases in fees and miscellaneous revenue have been forecasted to increase with the rate of inflation, projected to be 3% in 1998 and 1999. Revenues for certain specific departments, including the Medical Center, RTI, DSS, the Department of Correction and Bus Operations in DOT have been calculated separately.
• WCMC: Departmental revenue will continue to reflect a deregulation of rates. The revenues were kept constant. They dealt with the expenditure side, projected salary increases, contractual expenses for medical supplies, etc., but then came to an acknowledgment that they would deal with the sponsor contribution shortage by stating a management initiative. The management initiative has to be an improved case mix, offer more profitable medical services or make certain cuts and efficiencies.
• DSS: The 1997 adopted budget anticipates a reimbursement rate equal to 55.7% of appropriations. Increases for 1998 and 1999 are projected at 3% each year.
• Department of Correction: Revenues for 1998 and 1999 were held flat with the baseline for 1997 with the exception of federal inmates ($884,600).
• Expenditures: Personal Services: Projections do not provide for any retroactive pay increases on the 1997 base pay. However, they have projected salary adjustment increases of 2% for 1996 and 3% for 1997, and 3% increases for 1998 and 1999.

COMMITTEE ON BUDGET & APPROPRIATIONS

MINUTES - JUNE 16, 1997

PAGE 6

• Management initiatives coincidentally equal the amount of salary increase if 2%, 3% and 3% were given. Because that was an assumption, and management initiative is an assumption, BKS equated the dollar value of the two. Mrs. Swanson stated that Management Initiative means savings. Mr. DeSantis replied it means revenue enhancement or savings.
• Debt Service Costs: Assuming, based on pattern shown, $60 million in additional borrowings for the General Fund for 1997, 1998 and 1999. The forecast for annual debt also includes an appropriation for interest on a $100 million tax anticipation note expected to remain outstanding for 11 months in 1998 and 1999 at rates of 4% and 5% respectively.

Due to the scheduled Committee of the Whole (scheduled for 4:00 p.m. today) the discussion of the 3 Year Projections will be continued on Monday, June 30th at 2:00 p.m.

There being no further items for discussion, on motion of Legislator Darcy, seconded by Legislator Abinanti, the meeting was adjourned at 4:15 p.m.