A 2.5 percent salary decrease will continue for Navajo County employees in fiscal year 2011-12, but a program awarding additional

personal days to help make up for the decrease will not.

Supervisors approved amended budget guidelines on Feb. 22 that eliminate the extra personal days. Finance Director James Menlove explained that annual leave balances were creating a liability for the county because employees were not using as much vacation time.

“Annual leave balances are escalating because people use personal leave,” he said. “It’s creating a significant liability to the county.”

In creating a budget, the county must set aside funds to pay certain unused leave balances when employees depart from the county. The amount set aside is in direct relation to the amount of unused leave.

When the 2.5 percent reduction was made, county staff members were given an additional 52 hours of personal leave. Supervisors previously adopted budget guidelines for fiscal year 2011-12 that included both the salary reduction and the personal leave.

Menlove noted, “The guidelines state we would continue the award of 52 additional personal leave hours if the 2.5 percent salary reduction remains in place for FY11-12. Due to the increasing liability and leave balance payouts associated with growing annual leave balances, we are unable to recommend the continued accrual of personal leave.”

He advised the board members that the salary reduction will be reviewed during the budget year. If the county’s financial situation improves, regular salaries will be reinstated.

Supervisor Jesse Thompson asked whether the state’s economy is expected to improve any time soon.

Menlove noted that although he remains hopeful, many economists are predicting that there will not be any significant improvements until 2015. He also pointed out that the state could still make cuts that would further reduce the county’s budget.

Supervisor J.R. Despain explained that the salary reduction has helped the county avoid layoffs.

“The reduction would be the same as furloughs (imposed by the state). It still reduces the salary,” he said. “Our goal is to try to preserve the job itself.”

He went on to say, “I think it would be to our advantage to share this with employees ourselves. I think they are wondering why we’re doing this.”

Board members unanimously approved amending budget guidelines to eliminate the additional personal hours.

In other action Feb. 22, the board:

* Approved a contract with the Arizona Department of Health Services (DHS) for a dental sealant program.

* Approved a contract with Dental Hygienist Connie Baine for dental health services.

* Approved the expenditure of up to $4,000 in District III special road funds to pulverize Silver Creek Drive for the White Mountain Lakes Special Road District.

The next regular board meeting is set for 9 a.m. on Tuesday, March 8, at the county complex in Holbrook.