Josephine County recently enacted the Voluntary Employee Resignation Program to incentivize up to 32 employees to resign. Qualified employees would receive 740 hours of pay plus any accrued leave per union or County policy, equating to up to six months of pay. Eighteen employees took advantage of the program, including a particularly surprising departure: Finance Director Sandy Novak.
Ms. Novak’s resignation raises serious concerns, as she was responsible for overseeing the program. While there is no direct evidence that she orchestrated its creation to benefit herself, her acceptance of an estimated $80,000 buyout remains highly questionable. The optics of the county’s Finance Director benefiting from a program she managed are undeniably problematic.
With Ms. Novak’s departure, now is an opportune time to assess her tenure as Head of Finance. Having hired Sandy when I was the HR Director for Josephine County, I offer unique insights into her career progression. Initially hired as Assistant Finance Director under then-Director Arthur O’Hare, Novak demonstrated technical competence and dedication. However, her people skills were lacking, a common trait among accountants. When O’Hare retired, he recommended her for promotion, despite concerns among department directors regarding her vision and leadership skills. To her credit, she made an effort to develop her abilities, and I cautiously supported her appointment.
Unfortunately, Ms. Novak repeatedly failed at one of the most challenging aspects of the job: influencing an elected board—often lacking in fiscal expertise—to make sound, long-term financial decisions. The Josephine County Commissioners have historically prioritized short-term solutions over sustainable financial planning. Time and again, Novak made reasonable recommendations that were ignored, leading to the depletion of reserve funds. Instead of persistently advocating for responsible financial strategies, she eventually acquiesced and became an ineffective participant in the system.
Signs of trouble emerged early in her tenure. Staff turnover in the Finance Department skyrocketed, the highest of any department in the county. Former and current employees describe a toxic work environment, citing Novak’s poor hiring decisions, lack of training and support, ineffective communication, and a management style that swung between micromanagement and neglect. If she disliked an employee, she allegedly made their work environment unbearable until they quit or made enough mistakes to warrant termination. A county-wide customer satisfaction survey ranked the Finance Department dead last, with complaints citing poor communication and inadequate service. Anonymous sources within the county have reported grant errors and budget miscalculations under Novak’s leadership, though the financial impact on taxpayers remains unknown due to her lack of transparency.
More glaring examples of incompetence surfaced during last year’s budget cycle. Last-minute cuts to Public Health triggered heated discussions on how to balance the department’s finances. Novak repeatedly proposed budget adjustments that violated Oregon Budget Law, forcing Deputy County Counsel Leah Harper to intervene and confirm their illegality. Many of these proposals involved reallocating restricted grant funds for unauthorized purposes.
Despite struggling with her financial responsibilities, Ms. Novak also assumed control of the HR Department without any formal HR experience. Under her oversight, two board secretaries were terminated under questionable circumstances, exposing the county to potential litigation. Additionally, two department heads faced retaliation from commissioners, prompting an independent investigation costing taxpayers an estimated $45,000. The investigator confirmed the allegations, but despite county policy requiring public disclosure of the investigation summary, Novak withheld the findings. It remains unclear whether she did so independently or under direction from the commissioners.
A final critical issue in Novak’s tenure is her compensation. When she assumed HR responsibilities, her salary increased—a standard practice for additional duties. However, the methodology behind the increase is suspect. County salaries are typically determined by comparing equivalent positions in similarly sized counties. Novak commissioned a wage study but failed to disclose its details publicly. She informed the board that comparable Finance Directors earned approximately $175,000, recommending an additional 5% raise for her HR duties, bringing her salary to $184,000.
Upon review, I discovered discrepancies in her analysis. For instance, Coos County pays its Finance Director only $110,000. Using historical county data, I determined that the average Finance Director salary for comparable counties was $146,000—nearly $40,000 less than Novak’s recommendation. This suggests either gross incompetence in her salary analysis or intentional misrepresentation to inflate her pay.
Regardless of whether this was a mistake or a deliberate action, it underscores the critical need to separate Finance and HR functions—standard practice in most government agencies to prevent conflicts of interest. County government should prioritize fiscal responsibility, paying fair but not excessive salaries while maintaining integrity in financial management. Novak’s salary manipulation, coupled with the board’s failure to scrutinize her recommendation, led to inflated compensation and an excessive employee buyout.
With Novak’s departure, the Board of Commissioners has an opportunity to reassess the Finance Director’s salary and leadership qualifications. Josephine County faces challenging financial times ahead, and taxpayers deserve a competent, professional Finance Director capable of guiding the board through uncertain waters with sound financial strategies.
