Government jobs no safe haven

The old adage was that government jobs didn’t pay well but at least they were safe, promised good benefits and provided sanctuary during a down economy.

No more.

Increasingly governments are being forced to balance budgets on the backs of their largest expense — employees. Governments are slashing pensions, holding off on pay raises, reducing the public share of health care costs and even laying off employees to make ends meet in difficult times.

“People for years have been telling government to run like a business,” said Howard Shook, chairman of the Atlanta City Council’s finance committee. “Well, we are. You open the paper every day and you read about the city and layoffs.”

Atlanta may be the poster child for governments’ harsher treatment of employees. Twice this year, the city has cut back on positions and people to make ends meet, laying off more than 350 employees. The city also laid off a similar number of workers between 2001 and 2002.

Shook is leading a city study committee that right now is looking at slashing pension benefits for new employees and other ways the city can contain costs for existing workers and retirees. Why? The city simply can’t afford the burden of benefits it already owes retirees.

Earlier this month, Cobb County joined in with new pension rules that require new employees to contribute more and work longer before they are eligible. DeKalb County made a similar change three years ago.

“We have people now who are living in retirement longer than they worked for the city. We can’t afford that,” Shook said.

Atlanta has laid off inspectors, parking enforcement officers, city planners, clerical staff and even firefighters.

One former employee, Jonathan Gelber, said he took a planning position with Atlanta in May 2007 “hoping to do some good.”

A year later, he was swept out when the city needed to save some money and Mayor Shirley Franklin and the council couldn’t agree on whether to raise taxes. He was stunned.

“What shocked me was the way they kicked me out the door,” said Gelber. “I understand why they made the decision they made. I think it was inexcusable they showed us so little respect.”

Atlanta’s hardly unique in its treatment of city workers.

Fulton County is looking right now at laying off about 30 firefighters because of new cities taking over some tasks once done by the county. In the past two years, Fulton County also has eliminated jobs in planning, parks and police as part of that transition.

East Point also just closed two fire stations and eliminated more than 80 jobs citywide in an effort to make ends meet in difficult times.

Gwinnett County has blocked new employees from joining the county pension for two years. It also cut its match for its defined contribution plan. And right now department heads are looking at cost-savings measures to be proposed as part of the county’s 2009 budget.

Those changes could eliminate programs and county jobs, according to Michael Comer, assistant county administrator. He said up until this year’s downturn the county has been able to at least keep its pay ahead of inflation.

“Everything definitely is on the table,” Comer said. “It’s a bit of a new day for the public sector to have to go through this.”

Zachary Williams, Fulton County manager, said the days of the safe, secure government job are over.

“The truth is, government jobs do not offer the kind of security they once did,” Williams said.

Fulton, like many other governments, also is hoping to save money among its remaining work force. The county is in the midst of a transition to employees picking up 30 percent of health care premiums. The county now pays 80 percent and used to pay 90 percent.

Finance officials report, at the same time, employees losing ground to inflation. Since 2003, inflation has gone up 19 percent but pay has increased only 10 percent.

DeKalb officials reported many employees there also would have had a hard time keeping up with inflation because the county hasn’t given cost-of-living raises in recent years. Instead, employees have earned 2 to 4 percent increases based on performance.

Wayne Hines, a veteran firefighter, said the cutbacks and penny pinching are definitely hurting rank-and-file employees who are struggling to make ends meet just like everyone else.

“Everyone is feeling it,” Hines said. “With everything going on, you have a bunch of unhappy employees. A lot of us feel betrayed.”

Some worry the changes may make it harder for local governments to attract and retain professionals like lawyers, accountants and engineers who not only can earn more money in the private sector but also now will have to contend with eroding benefits at local governments.

“Why would you take a job where you get less money and no better benefits?” said Angela Parker, Fulton’s public works director.

Part of the financial problem Atlanta is now wrestling with comes from earlier attempts to address its problems retaining employees. The council increased pension benefits in 2001, hoping it would help keep police officers who were getting trained by the city and jumping to suburban agencies.

City officials say employees continue to leave at a rapid pace. Increasing benefits for police did make other employees angry and create calls for enhanced benefits for others.

Patrick O’Connor, the Fulton finance director, said the financial pressures overwhelming the banking industry and building trades would inevitably force governments to react and cut back on its No. 1 expense, people.

“People thought money market funds were safe,” said O’Connor. “The whole world has turned upside down.”