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This is driven by both the financial condition of the agency as well the makeup of the elected officials and their beliefs about how government money should be spent.Here are some thoughts if you are involved in this process as you start 2018.The result is that when many agencies compare their projected revenue and expenditure increases over the same period of time, they are projecting that they will experience significant shortfalls.Several of the legislative bodies at these agencies are wondering how it will be possible to maintain services at current levels when they look at their expenditures (with the inclusion of the projected Cal PERS rate increases) projected over the next few years.While most of these same agencies are experiencing healthy revenue increases caused by increases to tax revenues (e.g., property, sales and transient occupancy) as people are spending more money, those projected revenue increases are often significantly outpaced by the projected expenditure increases.

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At those agencies where the elected officials listen but don’t promise anything and understand that negotiating should be done by their negotiators, the negotiations have gone more smoothly.

But, at those agencies where the elected officials do more than listen, the labor unions understandably see that as an opportunity to make progress towards accomplishing their goals through direct contact as opposed to through collective bargaining. Showing your council or board what pension costs are projected to do to your budget will help them make an informed decision about how to approach labor negotiations.

Talking to your elected officials about this issue early and often in the process can help your negotiations to be more successful. Having well written MOUs is critical to avoiding grievances or other claims.

Staffing is not as high as it used be for some agencies.

In addition, since there are many agencies giving increases, it creates somewhat of a domino effect because public employee compensation is often influenced by what the market pays similar employees.

Talk to your boards and councils about these issues so they can decide how to prioritize how they spend the money that they have been entrusted to spend.