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County cuts costs with furloughs

Saturday, March 13, 2010
(Updated 3:00 am)

GREENSBORO — The county’s Register of Deeds office is furloughing its 27 employees, giving workers two unpaid days off to try to make up for revenue shortfalls.

The department is one of the county’s most efficient and profitable — it’s projected to take in about $3.5 million this year with its $1.7 million operating budget.

But Jeff Thigpen, the county’s Register of Deeds, said even his department isn’t immune to a down economy.

“The fact is people aren’t buying $400,000 houses anymore,” Thigpen said. “They’re buying $150,000 houses — in that range.”

And other county departments could follow suit.

“Furloughs are better than unemployment,” said Commissioner Billy Yow. “It’s probably not a popular thing to do, but it would be even less popular if we had to lay people off.”

Thigpen’s office makes most of its money by taking a percentage of such sales through excise tax stamps. With less money coming in this year — between $400,000 and $500,000 less than projected — county leaders began to ask whether the office needed the number of people it has working the same number of hours.

“We had less revenue coming into the county through our office and the work that we did began to reduce itself,” Thigpen said. “It was a combination of those two things.”

Thigpen’s office is pretty bare bones already. Several years ago, he went to county leaders to propose his staff cross-train duties, becoming less specialized. It cost the county about $30,000, Thigpen said — and saved around $360,000 when the office was able to operate with fewer staffers doing more work.

Thigpen said his office is now one of the most efficient in the state, but it would be hard to trim it further. In a tough budget year, that leaves his office few options.

The two-day furlough is expect to save about $14,000, Thigpen said. Furloughs will be staggered so the office doesn’t have to be closed.

“We’re drilling down to this place where we’re about to hit the bone,” Thigpen said. “I’m being very careful about what I do at that place. That makes furlough an option now, but it makes giving up staff members increasingly more difficult.”

Thigpen, a county commissioner until his election as register in 2004, will take the furlough days as well. It’s not pleasant, Thigpen said, but it’s better than layoffs. It’s also one way departments can pitch in to help commissioners out of a tough spot.

“I would suspect the commissioners are going to have some very difficult decisions if they want to pass a budget without a tax increase,” Thigpen said.

Last year, 73 county employees were laid off and nearly 200 were offered early retirement. Thigpen’s department took a 19 percent budget cut, the second highest of any county department. The department lost six positions, Thigpen said, only one of which was empty at the time.

“This year, it’s just as difficult a year as last year, but we don’t have the latitude to cut as deeply.”

Commissioners don’t need to vote on furloughs or layoffs; both are something County Manager Brenda Jones Fox can enact herself. But commissioners are watching with interest.

Yow said he thinks other departments will follow the Register of Deeds’ example, enacting furloughs to stave off layoffs. As bad as the economy is, Yow said layoffs aren’t impossible either.

“There’s a good chance we could see that too, with the way things are shaking out,” Yow said. “The board is really getting in tune now with the fact that we’re going to have to make some hard cuts or we’re going to have to raise taxes. Nobody wants to raise taxes.”

Commissioner Kirk Perkins said furloughs are a good temporary solution, but they won’t solve the problem of mounting bond debt that has to get factored into the budget.

In 2008, county voters passed bond referendum items worth $651.1 million. The county is now issuing a historic level of debt to pay for new schools, a jail in downtown Greensboro, expansion at GTCC and other projects.

This year, the county is expected to owe $1.1 billion in bond debt. The county will need to find $24.3 million to service that debt.

“We may have to end up cutting some people back,” Perkins said. “With some of the bond issues coming on, we either have the revenue or we have to cut services.”

Contact Joe Killian at 373-7023 or joe.killian @news-record.com

 

Accompanying Photos

Margaret Baxter (News & Record)

Comments

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jeaniegnc

March 13, 2010 - 8:15 am EST

It sounds like Jeff Thigpen is doing a good job during very difficult times. Now the other departments need to follow suit. We know there are not as many homes being built and the department that issues building permits and does inspections must have jobs that can be cut. If that department has not cut positions as Mr. Thigpen has already done in his department, then they need to eliminate positions instead of allowing them to take days off.

Each and every department head needs to start looking for positions that can be cut. As Mr. Perkins said, we do not want tax increases to pay for all of those bonds that were passed.

Beachwalk

March 13, 2010 - 10:33 am EST

Here's a novel idea: stop passing so many bonds. Voters, for the most part, are pretty ignorant when it comes to bonds. They seem to think it's free money. County commissioners are also at fault. They should not approve so many bonds to be put on the ballot. Governments (federal, state, county, city) have to come to some kind of realization that they cannot continue to spend money like it grows on trees. For example; no matter how great it would be to have a new library in the NE part of Greensboro, the money is not there.

forusa

March 13, 2010 - 11:18 am EST

Sorry Beachwalk, voters approve bonds, not Commissioners. This is one of the few budget areas in which voters have a say. A majority of Guilford County citizens want quality schools and were willing to provide the funding.

Beachwalk

March 13, 2010 - 3:10 pm EST

Why don't you try reading what I actually wrote in my post before you make a fool of yourself.
I wrote "County commissioners are also at fault. They should not approve so many bonds to be put on the ballot."
The county commissioners are the ones who decide what bonds will be put on the ballot. I also said for the most part voters are ignorant when it comes to bonds. They think its free money. Obviously you are one of the ignorant ones.

papanther

March 14, 2010 - 10:56 am EDT

Or its possible that forusa understands that bonds lead to future financial obligations by the taxpayer but is willing to make that sacrifice for the issues deemed important. I for one didn't vote for every bond issue but did vote for some with the understanding that collectively all of us (with the heaviest burden on property owners which I am one) will probably pay more in taxes if the issues pass. We have had enough bond issues locally in recent years for people to know how bonds work. It seems to me that you may include with the "ignorant" those of us who are informed and willing to sacrifice for the community's good.

Abner Doon

March 13, 2010 - 11:17 am EST

Meanwhile, the county borrowed $82,500,000 more this past week.

What is the actual budget deficit?

Or is that an unknown unknown?

jeaniegnc

March 13, 2010 - 11:29 am EST

Once again I would say that we need to only allow people who will be sharing in the cost of the bonds to vote on them. We have a lot of people who vote for the bonds, college students for example, and they will never have to help to pay for them. I am not saying that they should not vote on other things but just on the bond issues because the property owners will be footing the bill for the majority of that cost.

a_reader

March 13, 2010 - 3:42 pm EST

Yes there are some areas where demand for county services are down, (deeds and inspections). However, there are other areas where demand remains the same or is actually higher (social services, health, ems, public safety). The new buzz phrase at the county is "Doing more with less". However if the cuts go to deep, the results will be fewer services by fewer resources. How loudly should we then complain when the line at the health dept doubles, or your help with child support gets delayed?

jstevenh1952

March 14, 2010 - 7:29 pm EDT

Like Washington, many of our public employees and elected representatives lack the basic understanding that they are stewards of the resources we have entrusted to them. It is our tax dollars that give them careers, provide for their families and secure their retirements. It is good to see a public servant to work within the means provided.

Our liberal and progressive friends would have us to believe that a cut back on services is unacceptable. That the governments should extract the most they can though confiscatory taxes and levies. Placing an unbearable amount of debt on our children to insure that the process of excessive taxation continues.

This may be a new concept for public employess and politicians to understand, they are serving at the grace of taxpayers. If revenues are down, so be it. Adjust, work harder and be thankful for the security our tax dollars provide to you and your family.

And to those who expect the govenment to continue to feed and house you, be prepared for less and seek to change your circumstances though the perserverence and hard work, the same as those who provided your blanket accomplished for you.

If we fail to seek wisdom, we will soon find ourselves at a banquet of consequences.

Semper Fi.

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