Leaders to discuss county, school compensation

Stegmaier A salary increase may be in the future for county and school employees following a review of compensation goals and pay survey. Compensation has been stagnant for several years, creating concerns that Chesterfield may not be competitive.

County Administrator Jay Stegmaier and Superintendent Marcus Newsome will meet to set goals for a compensation system and report back to the Joint Board of Supervisors/School Board Liaison Committee by September.

“The committee wants to raise the issue with enough time for the next budget cycle,” said Stegmaier. The school board approves its budget in February next year; the supervisors will approve the county government’s budget in April. Both take effect July 1.

“We’ve been in survival mode,” Newsome told the committee last week. “No one anticipated we’d have to do what we’ve had to do. I’m concerned about our talent pool.”

Newsome “We’re creating problems by not paying competitive salaries,” added Omarh Rajah, Matoaca representative on the school board.

Dale Supervisor Jim Holland supports the effort but cautioned county leadership “to be reasonable within reality.”

Dale School Board member David Wyman said it is time to review pay and benefits.

“To focus on just money is wrong,” said Bermuda Supervisor Dorothy Jaeckle. “[Chesterfield] cops are paid less, but it’s not just about the money.”

She wants the school system to consider merit pay as the county did. Pay for county employees has been frozen for three years, but the FY12 budget (beginning July 1) includes $3.4 million to give pay raises to employees with favorable performance reviews, particularly in fields with retention problems, such as engineering, technology, finance, police and fire/EMS.

School employees took a 2 percent or 3 percent reduction in pay last year, depending on their position, which was offset by a one-time bonus. The school system still pays its employees’ share of contributions into the Virginia Retirement System. In contrast, the county government stopped paying its employees’ share into VRS for new county employees last year.

“Are schools and the county going to move together on compensation issues?” asked Stegmaier. “Then we have to decide on being together on the goals.”

During last week’s liaison committee meeting, Stegmaier said Chesterfield typically pays 5 percent to 10 percent less than Henrico County. If Chesterfield increases compensation up to Henrico’s level, Henrico will likely increase its pay to retain market leadership, said Stegmaier.

Any pay study will likely be done by county staff, but an outside consultant might be used for positions where Chesterfield competes with the private sector.

Money for future pay raises will likely be tight. About 54 percent of the county’s general fund – how Chesterfield pays for the services its citizens expect – comes from property taxes. Assessed property values are projected to decline another 4 percent next year.