Staff Report - COLA for Exempt Staff

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Staff Report by: Topic: Meeting Brian Carlson COLA Modeling for Exempt and BOCC Special Meeting Budget and Finance Director Non-Union Staff 2024 Budget November 13t", 2023 Summary: • This report began as an analysis for the "exempt employee advocacy" group. It provides an analysis of COLA modeling using "West" CPI averages, and comparing it to select revenues for consideration in the 2024 budget, and eventual policy for this and other employee groups. • The analysis provides a possible basis for consolidation and uniformity of countywide (i.e. all employee groups, unions, etc.) application of COLA, so as to simplify or even eliminate negotiations by establishing a formula. • On the basis of this analysis,group will request either a 4%or 5.2% COLA. Draft budget reflects 3%, equal to county's other union contracts as established by formula. Cost for exempt proposal is between $660K and $825K, including benefits. Draft budget cost is$500K,therefore increased cost$160K to$325K, including benefits. Background: • Working group has requested an analysis based on a rolling-average of County's regional "inflation" data (Western States CPI), and a comparison with County's revenues to ensure sustainability. • Group asked three basic questions: o What would be the 2024 COLA if we targeted a rolling average of CPI? 5.3% if 3-year average; 4% if 5-year average o How has revenue growth compared with CPI growth? Revenues have grown at a higher rate,though 2023 will likely be less than CPI. See "analysis", below o Does over-budget revenue from previous "good"years offset COLA requests during "bad" revenue years? Short answer:yes, both for the exempt-group and countywide Analysis• • see page 2 for background data • Budgeted Director attempted to answer the questions as posed by group. Analysis is somewhat speculative, but reflects a best effort to quantify the relevant considerations without advocating. Conclusion/Next Steps: • BOCC provide consensus direction to budget staff regarding exempt-staff COLAs in the 2024 Budget.