Wednesday, June 10, 2009

Ridley-Thomas Seeks Reduction in Costs from County's Private Contractors





June 9, 2009                                                                                                   Contact:   Aurelio Rojas        James Bolden

                                                            213-974-2222             213-200-5314            







He asked that the County reach out to its private sector partners for assistance during these difficult times balancing the County’s budget


LOS ANGELES – In an effort to avoid layoffs and furloughs of county employees, Supervisor Mark Ridley-Thomas today called on department heads to seek a 10 percent reduction in costs from private contractors in exchange for a one-year service extension on contracts for ongoing services and recurring materials and supplies.


The Supervisor noted the county is experiencing a significant decrease in tax revenues tied to the recession and real estate industry as well as an expected reduction in state aid because of California’s budget crisis.


“The County must take extraordinary measures to reduce its operating costs due to these State actions,” Supervisor Ridley-Thomas said in a motion the board will vote on June 16.


The motion directs the County’s Chief Executive Officer to work with the Internal Services Departments, County Counsel, Auditor-Controller and other departments as needed, to develop the parameters for a contract cost savings initiative which can be implemented over the next 60 days.


The Supervisor also asked the Chief Executive Officer to provide all departments with a “model” letter to send to departmental contractors by early July asking them to reduce their rates for the 2009-10 fiscal year.


He noted the County has taken numerous steps to protect its core services and maintain a balanced budget, such as implementing a hiring freeze and curtailments to all departmental budgets.



 Now, he said, “the County must reach out to its private sector partners for assistance during these difficult times with  a strategic initiative that will be mutually beneficial.”


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