Tuesday, August 21, 2007

Counties review vehicle policies

As Macomb, Oakland and Wayne county governments struggle with severe budget woes and threats to services, they continue to provide hundreds of take-home vehicles and car allowances to higher-level employees.

But with the budget concerns -- and agitation among rank-and-file employees being asked for wages and benefit concessions -- members of each county's board of commissioners are examining whether it's time for some workers to turn in their keys.
Most of the vehicles are to be used only for commuting to work and government business.

But critics say the counties could save taxpayers thousands of dollars by having employees request reimbursement for the miles they drive for business rather than have the county pay for vehicles, gasoline, insurance and maintenance of take-home cars.

"The average worker in nongovernment industry doesn't have a car to drive back and forth to work," said Rose Bogaert, chairwoman of the Wayne County Taxpayers Association. "I've got to feel they're pretty upset paying for someone else to get that benefit when they themselves can't."

Aspects of the counties' vehicle policies include:

• Every countywide elected official receives either a take-home vehicle or a car allowance, which is a flat monthly payment to cover transportation costs.

• In Oakland County, the six countywide elected officials, their top 11 deputies and the chairman of the Board of Commissioners all receive take-home cars that have few restrictions on personal use.

• Wayne County hands out taxable annual car allowances nearly all ranging from $4,800 to $6,000, to 143 employees -- mostly the appointees of elected officials -- at a cost of $735,000 per year. Fourteen of the 15 county commissioners each get $6,000.

• In Macomb, the road commission provides take-home vehicles to each of its part-time road commissioners that can be used for personal travel. They also receive taxpayer-funded car washes. A take-home vehicle is considered a noncash benefit and taxed as if it were personal income at about $3 for each day it is used.

Oakland County

County Executive L. Brooks Patterson and some commissioners agree that their policy could be tightened.

In Oakland County, 228 employees receive take-home cars, the majority from the Sheriff's Office. Another 71 workers with the road commission get take-home cars.

The county's fleet, which includes about 45 pool cars that can be signed out for short trips, cost $3.1 million in the 2005-06 budget year. The county spent $617,614 that budget year in mileage expenses for employees who used their own vehicles for county business, reimbursing at a rate of 48.5 cents per mile.

Employees must report any personal use of the vehicles, which is then reported as taxable income. No one has turned in any personal mileage use so far this budget year, which ends Sept. 30.

Patterson said there is room for improvement in the county's take-home car policy, which hasn't changed since 1993.

"I wouldn't be surprised if some people lose their cars, not just in my office, but across the board," said Patterson, who drives a 2007 Chrysler 300 provided by the county.

The Oakland Board of Commissioners is holding budget hearings through the end of August and has questioned whether so many people should have vehicles. Commissioner Mike Rogers, R-Farmington Hills, said he hasn't heard any compelling evidence yet to begin ending car privileges for the employees.

But Commissioner Tim Greimel, D-Rochester Hills, isn't so sure that so many people need county cars.

"Especially during these difficult economic times, we have to make sure that the county is spending taxpayer dollars as prudently as possible," he said.

Wayne County

Besides providing car allowances, Wayne County also has 105 employees who receive take-home vehicles, mostly for those in the Sheriff's Office and roads division. In the Sheriff's Office, all 47 of those with take-home vehicles are sworn officers who respond to emergencies. Six of them, however, spend the majority of their time on administrative duties.

But Robert Dickerson, chief of administrative operations, said they also respond to situations on a 24/7 basis and attend work-related functions after business hours.

In the current budget year, Wayne County spent $130,789 to buy four take-home vehicles and cover lease payments on five others. Taxpayers also cover the cost of gasoline and maintenance for take-home vehicles -- $207,795 in the 2005-06 fiscal year for the 58 non-Sheriff's Office vehicles. Insurance is handled through the county's self-insurance policy.

Wayne County Executive Robert Ficano said it's cheaper to provide either vehicles or a fixed car allowance to certain employees than to have them claim mileage.

Ficano said his administration has cut the number of take-home vehicles in half since 2002.

"We're trying to get to running this like a business," said Ficano, who drives a county-issued 2007 Cadillac DTS. "It's been very frugal."

But Wayne County Commissioner Bernard Parker, chairman of the commission's budget committee, said the county could cut its vehicle costs in half if it eliminated all take-home vehicles and abolished car allowances, in favor of mileage reimbursement.

Parker, D-Detroit, has proposed the change, but Ficano opposed it because he says the current system is cheaper, Parker said.

Only Commissioner Kay Beard declines the $500-a-month car allowance available to the 15 commissioners, saying she instead claims $100 to $200 a month in mileage reimbursement.

"$500 a month? That's not anything I want to be a part of," she said.

Beard, D-Westland, said county employees who must respond to emergencies should receive take-home vehicles, but she would like to see those not in that category drive their own cars and get reimbursed for mileage.

Macomb County

Macomb County provides 33 take-home vehicles to officials and 15 to the road commission. The county reimburses employees using personal cars for business 44 cents a mile.

Macomb's road commission spent $300,000 for take-home vehicles for its 15 employees since 2002, including spouses Michelle and Bob Mykytiak, who are the finance director and maintenance superintendent, respectively.

While some of the road commission's employees have cars to respond to road emergencies, others are office workers, like administrator Paula Mack-Crouchman, who drives a 2003 Pontiac Bonneville.

Mack-Crouchman said she often drives during the day for county business and must be available in emergencies.

"It's not just used to drive back and forth to work," she said of the car. Her husband, William Crouchman, receives a $3,348-a-year allowance for driving his own car as chairman of the Macomb County Board of Commissioners.

Macomb Road Commissioner Tom Raymus said the cars are bonuses to attract good employees.

"People in the corporate world get cars as perks all the time," Raymus said. "That's how they get good people."

Macomb County began reviewing its car policy last month, but commissioners said they don't expect to reduce the fleet.

In Wayne County, County Commission budget chairman Parker said it's unlikely the policies will change before the commission finishes the 2007-08 budget this month.


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