By Adam Pagnucco.
As the county council is poised to decide on funding for the county’s collective bargaining agreements, the county government’s largest union is pushing back. (I explained the collective bargaining process in posts published on April 23 and April 24.) Last week, MCGEO President Gino Renne wrote to the council suggesting an alternate approach to chopping back his negotiated compensation: focusing on core services. Gino wrote:
The reality is that the County’s ongoing growth in expenditures is largely driven by the consistent expansion of programs, services and give aways, many of which aren’t directly tied to the County Government’s core mission. I’ve been advocating for years that we need to clearly identify what our core services are and create a funding strategy that will reliably sustain those essential functions. By focusing our resources on these core services, we can ensure their stability and effectiveness.
Gino attached a budget analysis and slide presentation to back up his argument.
The union points to a number of growing items in the county budget that are not based on compensation including debt service, tax expenditures and economic development initiatives. Specifically, MCGEO’s consultant recommends: “Subject the $327 million in tax expenditures to the same line-by-line review applied to direct appropriations. Consider curtailing expenditures that provide private sector subsidies.” The consultant also recommends, “Quantify the R.O.I. [return on investment] on the J.O.B.S. Initiative, BioHub, the White Oak Gateway project, and the broader $29.5 million economic-development portfolio. Consider reducing current service budget totals, reducing spending on projects without a direct, measurable, and robust R.O.I.”
One of my wisest sources once told me this: nothing gets in the budget by accident. Every single thing is in there because someone wanted it to be there. I’ll throw in an amendment: some of the things in there were initially deposited by elected officials who are now long gone. Few things get eliminated when they leave, but many things get added. So Gino has a point on that.
At the same time, compensation accounts for roughly 70% of county agency spending and its growth has been exceeding revenue growth for some time. That’s due in part to a bargaining process in county government that is very different from what I witnessed when I worked for private sector labor unions. I will offer some thoughts on how to reform that process in a future post.
For now, let’s turn it over to Gino as he defends his members. His email to the council and his attached materials are reprinted below.
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Subject Line: Final memo and power point for package to County Council
Good evening,
I hope this email finds everyone in good spirits. I wanted to take a moment to share some thoughts regarding the proposed operating budget for this year. While I recognize the challenges we are facing, I believe it’s important to acknowledge the dedication of County employees who work tirelessly to maintain the high quality of life Montgomery County offers its residents. It’s crucial to remember that these hardworking individuals should not always be expected to shoulder the responsibility of balancing the budget whenever revenue becomes tight. I know that these discussions can be challenging for everyone involved but I believe that together, we can find balanced solutions, to foster a sense of shared purpose and collaboration.
Over the years, it’s been apparent that the County’s political infrastructure often places this expectation on employees, resulting in the loss of tens of millions of dollars in promised wage enhancements and retirement benefits—losses that can never truly be recovered. This trend deserves our attention and reconsideration.
The reality is that the County’s ongoing growth in expenditures is largely driven by the consistent expansion of programs, services and give aways, many of which aren’t directly tied to the County Government’s core mission. I’ve been advocating for years that we need to clearly identify what our core services are and create a funding strategy that will reliably sustain those essential functions. By focusing our resources on these core services, we can ensure their stability and effectiveness.
Initiatives and programs that fall outside this core mission should be thoughtfully discontinued, so our budget remains focused and sustainable. I appreciate your consideration of these points as we move forward in the budget process.
I have included for your consideration a budget analysis that was completed by our consultant Wendy Patton in hopes that it provides you insight on how you are allocating County revenues with a focus on areas that may need to be reconsidered to rein in spending short of further burdening the County’s workforce.
Thank you for your time, and I look forward to further discussion.
Respectfully
Gino Renne, President UFCW Loval 1994 MCGEO
Vice President , UFCW International Union
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The union’s attached budget analysis and presentation can be downloaded below.