And for My Next Trick, I'll Turn $400K into $1.2 Million! (And Give You the Bill for the $800K Delta)

 

Everyone knows the Schtick of a Magician Pulling a "Rabbit out of the Hat"--But What Would Happen to the Magician that Turns $400K into $1.2 Million (and then hands the bill for $800K to the Board of County Commissioners?)

The Escambia Board of County Commissioners is currently engaged in bargaining with all of our employee units that are represented by a labor union and that work under collective bargaining agreements.

Some negotiations are going in a positive, predictable manner(e.g. IAEP, PBA, and ATU)---others, well-- not so much...

The board gives the vision and sets the parameters for negotiations, and then sends a team to negotiate on its behalf.  That's the way this works.

But in order for us to negotiate intelligently, we rely on good data.  It is essential.

We have empowered our team to offer certain concessions to one represented group--to include salary increases as well as other items that are of mutual benefit and importance.  

In one recent instance--a generous offer was made by the county for a sizable salary increase.(fortunately it was not accepted by this particular unit's union negotiating team).  The board was told it would result in a cost of $400K to the budget.

But again, this generous, good-faith offer was rejected by this union--which was a good thing because the estimated cost of it that was provided to the board was badly flawed.  

It was an astonishingly, badly miscalculated number--off by 200%!!  

It actually would have amounted to a $1.2 Million Dollar increase to the budget if implemented, NOT $400K.  

From a staff email string:

"heads up.  This is a concern.  FYI......Late last week it was brought to my attention that the $400K offer the board made in good faith based upon staff data and backup provided----would have actually cost us $1.2 Million had it been implemented...When the BCC approved the most recent wage offer... they were advised the increase would cost approximately 400K annually.  Based upon Payroll’s calculations, it appears the offer would cost approximately 1.2M annually.  (See below and attached.)  We may need to discuss this..., confirm the numbers and, if necessary, address this......"

 What??  That was my astonished, nonplussed response when I was made aware of this.  How the hell does an $800,000 "mistake" or "miscalculation" happen?  How??--are these folks not professionals at budgeting and numbers????

Was this some kind of a setup job? (disclaimer--choice language in the linked clip from the jackpot scene of the movie "Casino"--you are forewarned....)

I still do not have an answer on any of this, but I intend to get one this week.