City watchdog warns of Philly's overtime spending spree
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Philly's overtime budget continues to balloon, raising concerns from the city's fiscal watchdog.
Why it matters: Overreliance on overtime, combined with the city's nearly 18% employee vacancy rate, could cause burnout among staff and hurt city services.
Driving the news: Overtime spending is expected to gobble up $258 million of the city's payroll for the fiscal year that ended July 1, per the Pennsylvania Intergovernmental Cooperation Authority's (PICA) latest report.
- That's up from $179 million in fiscal year 2018, before the city put in place safeguards to reduce overtime.
Between the lines: The primary driver for overtime spending is the city's glut of employee vacancies, which the city has struggled to reduce in recent years, per PICA.
- Philly had 4,500 employee vacancies out of nearly 25,500 positions at the end of March, according to PICA.
By the numbers: Some of the worst offenders for departmental overtime spending — which also suffer from high vacancy rates — are:
- Police Department: $103.8 million projected for last fiscal year.
- Fire Department: $72.8 million.
- Prisons Department: $34.5 million.
Of note: Philly's government has grown over the past three years by more than 2,000 jobs.
- During the pandemic, staffing levels for municipal jobs fell while enrollment in the city's deferred retirement plan rose.
What they're saying: "You may be using money from the general fund that could be better spent in other areas for needed services," Harvey Rice, PICA's executive director, tells Axios about the city's high overtime spending.
- City spokesperson Joy Huertas blamed "continuing labor shortages in key areas," telling Axios that overtime has ensured essential city services are delivered.
What to watch: Philadelphia was on track to hire an estimated 1,700 employees by the end of June, per PICA's analysis of the latest city data.