October 26, 2011
Last week the Civic Federation released its analysis of DuPage County’s $434.7 million FY2012 budget proposal. The Federation supported the County’s plan because it reduces expenditures for the third year in a row while pledging to maintain the existing level of service and keep the property tax levy at the same level as last year.
However, despite the County’s efforts to reduce employee headcount, personnel expenses are expected to continue to rise in FY2012, increasing by 3.2% from $187.6 million to $193.5 million. The FY2012 budget projects 9% annual increases in health insurance costs through FY2016.FF To manage increasing healthcare costs, the FY2012 financial plan proposes to increase employee contributions to health insurance by $10 per month per participating employee.F
In order to further address growing personnel costs, the County proposes to modernize its personnel procedures through revision of its vacation and sick day policies for non-union employees – a move the Federation supports. As of December 1, 2011, sick days will be de-monetized and sick day accrual amounts will be limited to 120 days. Similarly, DuPage County will reduce vacation days by trading two vacation days for two personal days, limit the vacation day cash-out amount for terminated employees to 35 days and limit rollover of vacation days from one fiscal year to the next to 10 days.FF Through these changes, the County expects to gain $20 million in savings over the next twenty years.F
The total full-time headcount for DuPage County government in FY2012 is proposed to decline by two full-time positions, or 0.1%, below the FY2011 amended budget figures. The total number of full-time positions will fall from 2,270 in FY2011 to 2,268 in FY2012. However, the FY2011 amended budget reflects significant personnel changes from the summer of 2011, including the Finance Department’s reduction of three full-time positions and the Economic Development and Planning Department’s reduction of seven full-time positions.F With the 2011 personnel changes, the overall proposed FY2012 headcount declines by 12 positions from the FY2011 proposed budget.
The following chart shows DuPage County’s personnel expenditures by function from FY2008 to the FY2012 proposed appropriations. The chart also presents personnel expenditures as a percentage of total appropriations for all funds. Total proposed personnel appropriations will increase by $5.9 million to $193.5 million in FY2012 from the FY2011 current budget of $187.6 million. The increase includes a 2% compensation increase.FF The FY2012 proposed personnel appropriations are 44.5% of the County’s appropriations for all funds.
Personnel-related benefits such as Illinois Municipal Retirement Fund (IMRF), Social Security and Employee Health Insurance total approximately $44.0 million and are budgeted in the Agency Support departments.FF Agency Support departments have experienced the most significant growth in personnel appropriations, with a $5.3 million increase from the FY2011 current estimate and a $17.8 million increase from the FY2008 actual expenditures. The trend primarily reflects increases in IMRF and Social Security costs and health insurance premium increases.FF Over the five-year period, the ratio of personnel expenditures to total expenditures for all funds range from the current FY2011 estimate of 42.1% to 54.2% in FY2010.