Under financial strain from COVID-19, Centre County to furlough employees, leave positions unfilled
Preparing for the significant financial impact of COVID-19, a divided board of commissioners approved cost-cutting measures Tuesday that affect the jobs of 100 Centre County employees across 31 departments.
County government employees have been working remotely for one month due to the coronavirus pandemic, but Commissioner Michael Pipe said the reduction of staff in county buildings has resulted in some being unable to work from home, due to having reduced or no work to complete.
The board decided in a 2-1 vote to furlough 63 employees, reduce 20 staff members’ hours and keep 17 positions vacant unless a critical need would arise. The changes — which will save $85,000 per week — will begin Friday, and those affected will be paid for the week of April 13.
“We are carving out a portion of our most precious resource and asking them to be apart from us for some time — to buy time,” Pipe said.
For court and court-related employees, the changes will last until at least May 1. For non-court staff members, the reductions will run through at least May 15. All affected employees will receive health benefits but are encouraged to apply for state unemployment compensation.
Pennsylvania provides the county with its largest operational source of funding, but due to the shutdown, the Independent Fiscal Office estimates revenues statewide will be $2.7-$3.9 billion short of expectations. According to the IFO, $1.5 billion of that impact could occur before the end of the fiscal year on June 30.
Anticipating $4 million in revenue from hotels, the county budgeted $170,000 in collection fees, but due to canceled events, Pipe said Centre County is unlikely to see those funds, so staff reductions are necessary.
While the cuts were proposed as an attempt to conserve financial resources, Commissioner Steve Dershem, who opposed the decision, said the county is taking “premature” action. He suggested waiting until the beginning of May to make staff changes and expressed concern with clarity and communication among the board.
“I think we need to take a little bit more time to take a look at the impacts, both intentional and unintentional, and the consequences of those impacts as we move forward,” Dershem said. “Plus and most importantly, I think we owe a little more time to our employees to prepare for the layoff process, and I think that’s what we should’ve been talking about today.”
Though Dershem said the county can afford to pay staff until the end of April, Pipe said he thought the county was “generous” and helped employees transition to working from home, some without any work.
“I’ve been in this situation before, many times,” Commissioner Mark Higgins said. “I think it would be more stressful for county employees to be waiting two weeks or longer, two and a half weeks, to find out whether they’re going to be laid off or not.”
The commissioners said they plan to re-evaluate funding allocations in the coming weeks. Dershem offered to give up his salary for the month of May; Pipe and Higgins said they would consider reducing their pay.
Departments not impacted include the coroner, central booking, corrections officers, drug and DUI court, elections, dispatchers and emergency communications, emergency management, financial management, risk management, adult services, aging, children and youth services, drug and alcohol, mental health, intellectual disability, early intervention and veterans affairs.
“Through the next several weeks, we will be reassessing the resumption of functions on a department by department basis,” Pipe said.
This story was originally published April 14, 2020 at 2:36 PM.
