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"We are watching that closely," Andrew Pantelis, a spokesman for the county's firefighters union, said of the surplus.
County Executive Jack B. Johnson (D) announced Monday that 85 general employees would be laid off in addition to up to 40 health department employees, whose jobs were funded by state grants. The layoffs are designed to make up about $4 million of a $22.7 million gap created when Gov. Martin O'Malley (D) reduced local funding to balance the state budget in late August.
"We have taken the more moderate course," said James Keary, speaking for Johnson after his announcement Monday.
Those being laid off will find out by Oct. 2 and be put on paid leave until their employment ends Nov. 1.
"I have tried very hard during the 18 months of this economic downturn to prevent job losses," Johnson said in the statement issued Monday. "As a result of the state cuts four weeks ago, I have nowhere else to look."
County officials also plan to put off funding for capital projects, eliminate 25 vacant positions and reduce spending on the county hospital system by $3 million to make up for the funding gap. The aid to the three public hospitals in Laurel, Cheverly and Bowie will have to be absorbed by the management company, Dimensions Health Care, Keary said.
Keary said the county is deliberately targeting employees whose work will not impact the public.
The layoffs are not expected to be to any of the county's sworn police officers or firefighters, he said, although civilian employees in the departments may lose jobs.
"Department heads were given instructions," he said. "They are to determine which positions would be eliminated that would have the least impact."
But union officials say the county could have avoided the measures by tapping into its emergency reserves. In addition to a $130 million, 5 percent reserve fund of the $2.6 billion budget that state law requires governments to keep, Prince George's County also keeps an additional 2 percent in reserve, or about $52 million.
Keary said the extra reserve is essential for keeping the county's bond rating, since the charter requires voter referendums on tax increases, making it difficult to raise revenue in the county.
"It's to show Wall Street that we can absorb any catastrophic loss," said Keary, pointing to examples of a bridge failure or destruction of a county building.
Those kind of events would likely be covered by state or federal aid, said Pantelis, who said the county should tap the fund to avoid firing workers.
"If laying off employees isn't catastrophic, I don't know what is," he said.
Keary and the county were unable to say exactly how many workers from each department will be terminated, but Keary said nearly every department will be affected.
None of the cuts are to the county's board of education, which accounts for $1.6 billion of the county budget.
Despite Keary's assurance, losses are likely to have an effect, Pantelis warned. Police and firefighters rely on civilian workers to run programs, handle paperwork, write grants and perform other essential functions.
"They've already cut any fat, if there was any left," Pantelis said. "Somebody's going to have to backfill these positions, and we don't have enough firefighters in our stations as it is."
In a statement late Monday, Council Chairwoman Marilynn M. Bland (D-Dist. 9) of Clinton said the eliminations were a "painful decision" and noted that it did not require action by the council.
E-mail Daniel Valentine at dvalentine@gazette.net.