Housing Authority debates early retirement package

January 12, 2007

PAT LITOWITZ
PLITOWITZ@NCNEWSONLINE.COM

Uncertainty over the long-term effects of a proposed retirement package has sidelined the measure.

During its meeting yesterday, Lawrence County Housing Authority board members continued to debate the plan's merits. The authority's senior management, which presented the proposal in December, projected savings of $415,000 to $797,000 over a four-year period.

"This just goes in line with what we've been doing," said Robert Heath, outgoing board president. "We made 16 (budget) cuts in June or July.

"We've been cutting ever since."

Michael Mancuso and Frank LaGrotta questioned whether it was a good idea to offer early retirement as the authority changes its accounting and management methods in April.

"I don't feel ready to vote for this," LaGrotta said.

Mancuso added, "I would have to echo Frank's comments."

The U.S. Department of Housing and Urban Development has ordered public housing authorities nationwide to switch to an asset-based management system.

The authority must decentralize its operations. The authority's 12 housing sites have been configured into five groups or "assets." The authority's central operations also are included in the equation.

"Things are going to change from the way they are now," Mancuso said. "We really need to see this (asset-based management) before we move forward."

Mancuso and LaGrotta requested an organizational chart detailing the duties under the new management structure.

"(The retirement package) doesn't appear to be a matter of extreme urgency today," LaGrotta said. "(However) it's a good plan."

Controller Holly Girdwood said the authority staff has worked on converting its operations for months.

"I'm not sure how much more extensive we need to get," she said. "We've had meeting after meeting after meeting.
"We put a lot of work into it."

Under the retirement proposal, employees that opt in would be replaced with workers brought in at a lower pay rate. A minimum of two positions would not be filled. The plan covers a three-year period.

Another concern Mancuso expressed involved how HUD funding would fit into the retirement equation. For every dollar the authority needs to operate, the federal government provides 78 cents.

Determining what HUD will provide is an annual exercise in frustration with housing authorities learning at the last minute what they will receive. Mancuso wondered if further cuts would jeopardize the retirement provisions.

Board member William Betz called for the proposal to be tabled, which was done in a 5-0 vote.

"We should resolve these concerns," he said.

Copyright (c) 2007, New Castle News