Lewis looks to consolidate, privatize

LOWVILLE — Lewis County officials are looking at consolidation or privatization in three departments next year in hopes of trimming long-term, personnel-related expenses.

"We've got to explore our options," said Legislator Jerry H. King, R-West Leyden, chairman of the legislative Ways and Means Committee.

Amendments made to the 2009 county budget Monday not only restored numerous positions and contractual funding but also established three directives: to seek consolidation of Public Health into Lewis County General Hospital within the first three months of 2009, privatization of the Community Recovery Center by June 30 and privatization of Mental Health by the end of next year.

Legislators hope that will provide enough time to determine the feasibility of the proposed moves, identify needed transition steps and, if feasible, enact them, Mr. King said.

"We're trying to make it happen in a timely fashion," he said.

The proposed changes won't be made unless they provide a savings to county taxpayers without sacrificing services, Mr. King said.

The county-owned hospital — a "well run, well established medical facility" — should provide know-how and economies of scale that would make Public Health more efficient, County Manager David H. Pendergast said.

"They have the expertise that we lack to fine-tune it," Mr. King said.

Public Health is already housed at the hospital's North State Street campus.

Placing the department under hospital operations likely would gain savings through access to the hospital's centralized purchasing and information technology systems, Eric R. Burch, chief executive officer at the county-owned hospital, told legislators Friday during a budget work session.

"There are some immediate benefits we'll realize," he said.

While hospital trustees are interested in the proposal, Mr. Burch said, they want him to do "due diligence" about the plan's effect before making a decision.

While hospital officials would look for ways to operate Public Health more efficiently, they wouldn't plan to cut programs, he said.

About $1.3 million of Public Health's $5.3 million budget is now borne by the county, and the intent is to transfer that money to the hospital if it takes over the department, Mr. Pendergast said.

"The county's commitment is to make them whole," he said. "It's still our program. We're just consolidating."

The hope is that, in upcoming years, realized savings and increased profitability will significantly reduce the county subsidy for public health services, Mr. Pendergast said.

The Community Recovery Center had been considered for closure at the end of this year. However, legislators — at the request of center Director William M. Burkhard — decided to fund the agency for another year to provide time to better explore privatization options.

A meeting was held Wednesday morning among local officials to begin the process, and a follow-up meeting with officials from the state Office of Alcoholism and Substance Abuse Services is being planned, Mr. Pendergast said.

Exploring the privatization of Mental Health will take more time and effort due to the variety of programs that department offers, the county manager said. Some programs could be farmed out to private firms, with others kept under the county's auspices, he said.

The county would still need to retain some employees, including a director of community services, to oversee contracts with private agencies, said Legislator Patrick F. Wallace, R-Lowville, a member of the legislative Mental Health Committee.

Mr. Pendergast, who worked for many years in Oneida County government, said that county reduced its Mental Health work force from 130 to eight, with the contracting agencies picking up all the ex-county employees. However, he added that "Lowville is not Utica," so the process may not work the same here.

The county's privatization efforts are being done in collaboration with the Community Services Board, Mr. Pendergast said.

Escalating costs for salaries and employee benefits are the impetus for the proposed moves.

According to figures presented at Tuesday's legislators meeting, the county's personnel costs went from $14.24 million in 2004 to $20.08 million this year, an increase of $5.84 million — 41 percent.

Rising sales tax revenues and an infusion of cash from Maple Ridge Wind Farm over the past few years have helped to offset extra expenses. However, those revenues have risen by only $5.12 million, from $6.3 million to $11.42 million, since 2004. And, while personnel costs are projected to continue to rise in 2009, sales tax and wind farm revenues are expected to dip slightly next year.

"More money is going out than is coming in," Mr. Wallace said.