Montgomery Feels Wage Squeeze
Outside the Montgomery County Council office building, dozens of people pushing baby strollers gathered yesterday to protest the elimination of a parenting program. Inside, the council had just approved costly police and fire labor agreements that could make paying for such services even harder.</br></br>The situation underscores what County Council analysts say is a fundamental problem faced by budget writers: The spiraling cost of labor agreements negotiated by County Executive Douglas M. Duncan (D) and approved by the council is forcing sharp reductions in a host of other areas, from pothole filling to recreation programs.</br></br>Employee salaries and benefits, which before two years ago accounted for about 60 percent of the county government's budget, will eat up 66 percent next year. That's an increase of $47.3 million. Although the county's population continues to grow, the increase wasn't driven by adding legions of positions: During that time, the workforce grew by 2.7 percent.</br></br>So what's going on? Over the past few years, as health costs have grown and the economy has slowed, Duncan and the council have approved costly wage increases and sweetened retirements for police, fire and general government workers.</br></br>Next year, for instance, retirement benefit costs will increase $15.7 million, 34.1 percent over this year, largely because of bargaining agreements approved in 2001. Council staff director Stephen B. Farber called that jump extraordinary.