Excessive Compensation for Nevada County (CA) Executive Staff
Bloated salaries for Nevada County staff, and County CEO's salary is higher than the Governor of California. Is this sustainable?
During the League of Women Voters forum for District 1 Supervisor, it was apparent there was disagreement among the candidates over the salary compensation of Nevada County executive staff. Michael Taylor and Sue McGuire objected to what they consider the excessively high salaries. In defense of the salaries, Heidi Hall stated that staff compares the salaries of eight similar counties to arrive at the pay schedule.
However, in reviewing the Adopted Budgets, 2018 to 2023-24, I compared Nevada County to rural counties with similar populations, Sutter, Yuba, and Mendocino, and neighboring Placer County with a population of 421,632. All Salary & Benefits totals were taken from Transparent California, Nevada County, 2022. Refer to spreadsheets, above.
I would like to know which other similar counties, Ms. Hall is referring to that Nevada County bases its pay scale because it’s apparent that salaries for our executive staff and elected officials are higher in comparison to Sutter, Yuba, and Mendocino, the only California counties with similar populations. Our CEO, Alison Lehman, makes a higher salary than Governor Newsom and the CEO of Placer County, which has four times the population and a budget of $1,221,251,032.
Another elephant in the room... for the past six years, Nevada County expenses have exceeded revenue totaling $59,940,215. This gap may increase if the State reduces funding to the county. This year’s budget reveals $20,318,351 more in expenses due to the transfer station rebuild.
Adopted Budget 2023-2024
$349,499.084 - Total Revenue $369,817,435 – Total Expenses ($20,318,351)
Also, over the past six years; Salary & Benefits have exceeded 40% of the budget, sometimes reaching 45.8%. In those six years, the average salary for a county employee has gone from $127,132 to $160,352. This increase is mostly due to excessive executive salary increases during this time frame.
While all employee salaries, which include executive salaries, increased by 19% from 2018 to 2023, it’s noteworthy that executive salaries, by themselves, increased by 42%. Executive staff are the top earners and it’s apparent they are profiting more using taxpayer funds. Not only has there been no correction of this policy by the Supervisors, they voted unanimously, giving Alison Lehman the authority to grant raises and bonuses at her discretion.
On what performance basis are these salary increases made? Does the job get that much harder each year? Salary increases are now automatically projected at 6.4% per year.
During the League forum, Heidi Hall commented, “County staff deserve their current salaries and could make twice as much”. Make twice as much, where? Most would never make it in the private sector where you have to show measurable results to get a raise. In Nevada County, you automatically get a raise.
Don’t our Supervisors have a fiduciary responsibility to the taxpayer? They have a responsibility to make sure board objectives have measurable results at the end of the year. How can they do this if Salaries & Benefits keep climbing and impinging on the budget for core services?
The county still faces the challenge of revenues not keeping up with expenses and the uncertainty of a downturn in State funding.
“The baseline forecast predicts that projected revenues will not keep pace with projected expenditures resulting in a drawdown of the general fund reserves over time. This is a key consideration in county planning where sustained increases in programs or other expenses are being considered. Labor union bargaining and other County planning activities consider this forecast. Active fiscal oversight and looking to reduce expenditures where sensible will be key to maintaining prudent reserves to meet unexpected threats.” – 2023/24 Adopted Budget
The General Fund forecast looks at four alternative scenarios:
increasing revenues
reducing expenses
both increasing revenues and reducing expenses
worst case scenario... reducing revenues and increasing expenses, (which seems
to be the trajectory we are on).
With the impending downturn in the State Budget, who knows how much of a decrease in revenue Nevada County can expect? The deficit will come out of the General Fund. By what means will the County pull out of this impending nosedive? How will the deficit funds be replaced in the future?
Currently, there’s no citizen oversight of budget decisions. The public deserves to have a voice and input. Beginning in February of each year budget meetings are held behind closed doors. My recommendation... budget meetings must be held in public with an opportunity for public comment. It’s time for full transparency in crafting the yearly budget. It's everyone’s responsibility to pay attention to the use of our taxpayer funds.
Pauli Halstead, Nevada City
Sources:
Nevada County Budgets FY 2018-2023-24
https://www.nevadacountyca.gov/DocumentCenter/View/50868/FY-2023-2024-Nevada- County-Adopted-Budget
Transparent California Nevada County 2022
https://transparentcalifornia.com/salaries/nevada-county/