County expands voluntary retirement incentive to include 95 applicants, citing budget savings

El Dorado County supervisors unanimously approved Nov. 4 an expansion of the county’s voluntary retirement incentive program to allow all 95 employees who applied to participate. The board authorized use of an additional $2,000,000 from the county retiree health account to top up a prior $2,000,000 set‑aside for the program.

Joseph Carrasco, the county’s director of human resources, told the board the original $2,000,000 allocation had been offered on a first‑come, first‑served basis; staff received 95 applications and asked to move additional trust funds into the program so all qualifying applicants could accept the incentive. Budget ad hoc members said that using the retiree health account for the expansion aligns with the account’s authorized uses and would generate personnel cost savings in subsequent fiscal years.

Public comment included support from local residents and union representatives who said the incentive is a reasonable way to reduce headcount through voluntary attrition rather than involuntary layoffs. Some retirees and community members urged caution about spending funds from the retiree health account. Ken Greenwood and Leo Bennett asked whether tapping the retiree health fund reduced the county’s ability to support current and future retiree needs; CAO staff answered that the account still contained sufficient funds and that the retiree health benefit has been discontinued and the account’s uses are restricted.

Staff said the fund is estimated to hold about $6,000,000 after the proposed transfer and that the incentive payment qualifies as an allowable contribution to retiree health savings accounts. HR and department heads said they had the lead time to plan for anticipated vacancies and that the expansion would likely avoid some future reductions in force while producing budgetary savings.

The board voted 5–0 to approve the expansion and the associated fiscal year 2025–26 budget transfer.