CENTRAL JERSEY: Mercer County may freeze wages, seek furloughs

   TRENTON — Mercer County Executive Brian M. Hughes said this week that the county is facing a $43 million shortfall in the next two years, and as a result, he is pushing back his annual budget address to March 12 in order to explore and impose various measures to reduce costs.
   Pay freezes and voluntary furloughs are among the options, he said.
   The County Executive typically delivers his budget address before the Board of Chosen Freeholders in February of each year. But the dramatic increases in costs to the county over the next two budget cycles — caused by mandated increases in the pension system and rises in health care and prescription drug plan premiums covered under collective bargaining agreements — have forced a new direction on cutting costs, Mr. Hughes said in a press release.
   ”The county must reduce spending, even after tapping a significant portion of the county’s surplus fund,” he said.”As is the case nationwide, our ratable growth has decreased and our expenditures have increased. Simply put, our labor contract obligations, pension obligations and state-mandated costs surpass our revenue year after year, and without drastic cuts, we cannot continue to meet those obligations.”
   Last year’s budget was $278.4 million. Salaries and benefits of Mercer County’s roughly 1,900 employees make up about 70 percent of the overall budget, and 80 percent of the county’s revenue is generated through real estate by way of tax ratables, and subsequent real estate fees collected by the Office of the County Clerk, both of which have been significantly reduced during this economic downturn.
   Mr. Hughes said his administration is considering every option available to cut costs, including implementing a pay freeze, instituting a hiring freeze on non-essential positions, leaving unfilled positions vacant, asking for voluntary furloughs and calling for concessions on labor contracts.