Wednesday, April 20, 2005

Employees $6.5 M Raise

[ SBN-P, 4/20/2005 ]:

Council approves $6.5 M in raises

By JOSHUA MOLINA
NEWS-PRESS STAFF WRITER


Despite budget deficits, about 600 S.B. employees will get pay boost

Amid glowing remarks about its work force, the Santa Barbara City Council on Tuesday unanimously approved $6.5 million in pay raises for about 600 city employees.

The raises are in addition to $3.5 million in salary increases the council awarded to police and firefighters earlier this year.

Although the city faces several years of multimillion-dollar budget deficits, the council said the raises are necessary to retain and recruit employees, particularly at a time when local housing prices are soaring above $1 million.

"I am in favor of supporting employees, all of them, no matter what department they are in," said Councilwoman Iya Falcone. "For me, the people come first. This is a city that values its people -- always has and always will."

The raises came on the same day that the city of Santa Barbara released its spending plan for the next two years.

The city is proposing a $216 million budget for next year.

But Santa Barbara is facing major financial problems in its general fund, which pays the salaries of most city workers.

The council is staring at a projected budget deficit of about $7.4 million next year. The city plans to spend about $3.5 million in budget reserves -- savings -- to help balance it. In addition, City Administrator Jim Armstrong is asking department heads either to raise revenues or to cut costs to save another $1 million.

Beyond that the city's finance staff, usually conservative in its budget estimates, is counting on higher revenues and lower costs totaling about $2.9 million, which would balance the budget.

The city's budget woes can be attributed to several factors, including rising retirement costs, the raises and the state's grabbing of $1.2 million to help balance its own budget.

Politics are also at play. All seven of the city's union contracts expired in the past year, forcing the council to renegotiate contracts in an election year -- when four council seats are up for grabs.

But members of the City Council say the city will somehow get through the tough times. At Tuesday's meeting to approve the raises, they often praised the hardworking financial staff and city employees.

"I am totally supportive of these contracts," said Councilwoman Helene Schneider. "I'm very proud of our staff."

Some of the council members and two speakers departed from direct discussion of the budget to criticize the News-Press for a recent editorial opposing raises for Service Employees International Union members.

Walt Hamilton, executive director of SEIU Local 620, said he was offended by the editorial's suggestion that police and firefighters were more valuable than the rest of the city's workers and therefore more deserving of raises.

"Respectfully, anyone who thinks that general employees don't put their lives at risk or that the city can respond to emergencies without them . . . does a disservice to those workers, this council and the community at large," Mr. Hamilton said.

He mentioned harbor patrol officers and maintenance workers as among those who respond to disasters.

Councilman Das Williams said there's a false perception that government workers have easy jobs and that they are actually underpaid compared with the private sector. He said the trade-off is better retirement benefits and a feeling of giving back to the community.

Mayor Marty Blum, who opposed 5 percent pay raises for police officers, said SEIU workers were deserving of their 4 percent raises.

"You do work hard," she said. "It's just really important that we pay you."

e-mail: jmolina@newspress.com


[ SBN-P online edition:
Council approves $6.5 M in raises ]

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