County officials are hoping a recently approved incentive program to retire early will neutralize a $1.5 million budget hole this year and nip into a deficit anticipated to be 10 times as much the following year.

Supervisors approved the Early Retirement Incentive program put forth by the chief administrative office last week without any revisions, according to senior policy analyst Mike Applegarth.

The office believes the plan could result in annual savings of $5 million depending on the number of retirees and their years of service. According to the staff report that preceded the July 20 decision, at least 70 county employees could be prompted to retire early, allowing county officials to restructure or eliminate those positions.

To reach the $5 million mark identified by county officials, Applegarth said roughly 50 employees would need to take advantage of the incentive, which offers $1,500 to $2,000 in yearly medical coverage.

An additional 2 percent drop in property tax assessments is the reason for this fiscal year’s deficit. The county is projecting a $15 million budget gap for 2011-12.

The county has identified 500 employees over the age of 50 with at least five years of service, which represent the minimum requirements to qualify. In that group are 110 employees at least 55 years of age who have worked a minimum of 20 years for the county, a group the county identifies as most likely to take advantage of the program, Applegarth said.

Employees that retire no later than Sept. 30 would receive $2,000 in yearly medical coverage, while those who wait until Dec. 31 would be eligible for the lower rate of $1,500.

“You get a little more if you retire quickly,” explained Applegarth, saying earlier departures give the county more time to recoup savings.

A similar program was employed last year, resulting in 22 early retirements. That figure represents 40 percent of the 55 total county workers who retired during the 2009-10 fiscal year.

“There were eight people who took the early retirement incentive out of the Sheriff’s Office last year,” said Applegarth, adding that the rest represented a “smattering across other departments.”

In other budget-related news, the sheriff and district attorney were scheduled to present cost reduction plans to supervisors on Monday, though the DA asked to reschedule because of his ongoing prosecution of accused CHP officer killer David Charles Zanon.

In a statement to The Telegraph before last week’s meeting, District Attorney Vern Pierson said his department is among the victims of the current economic crisis.

“Total management costs have been reduced by 38 percent since fiscal year 2007/2008,” he said via e-mail. “[To] compound the staff reductions the department is faced with the most crushing case load in El Dorado County history. We remain committed to working with the board and to maintain public safety.”