Why some state workers are taking furlough days and getting overtime
As businesses and governments try to balance their budgets many are implementing unpaid days off, or furlough days. For many state employees that meant 6 long weekends this summer, and a little lighter pay check. For some people that meant some unsuccessful trips to get a license renewed. But a viewer called us asking why some Department of Human Service employees were being furloughed one day, then working overtime, and earning overtime pay the next.
The answer is tonight's Fact finder report.
The order came in May from Lansing. Cut spending by cutting hours.
DHS Director of Communications Edward Woods III says, "furlough days are saving the state in excess of $20 million. Specifically for the Michigan Department of Human Services it's saving us $5 million in wages and salaries."
But as the state is saving money by cutting employees' hours, some departments are also spending money by having employees work extra hours, like the Department of Human Services.
Woods says, "we're not working overtime just to be working overtime."
So what is the relation between those state ordered furlough days and the extra hours in overtime? According to DHS, not much. The spokesperson says the overtime was actually something they were planning for long before furloughs were announced. He says there was no overtime allocated as a result of furlough days.
This year DHS started a new computer system for benefits for clients to access cash, food and child care assistance and to get help with medicaid. Planners knew employees and clients would need extra time to get up to speed.
Woods says, "the reason we have overtime built into the system this year for Bridges specifically is first of all we have to make sure we have a high conversion rate between the old system and the new system in terms of making sure everything transfers accurately. That's on top of record case loads."
He goes on to say it was something they budgeted for this year and most of the overtime the department has used took place before furlough days went into effect.
Woods says, "so I don't want people to think, or you to even consider we are providing overtime just to provide overtime. This is for a targeted purpose for our Bridges online application system to make sure we are providing benefits to those who are most vulnerable, children, adults and families."
As I was working on this story I asked the Department of Human Services how much they had spent in overtime this year. The representative got that number for me this afternoon.
This fiscal year DHS budgeted $20 million in overtime for field staff for the computer conversion.
Before the furlough days they had used about $15 million of that.
To date DHS has used almost $24 million dollars in overtime.
Remember the furlough days saved the state $5 million from DHS.
The spokesperson continues to stress there is no connection between furlough days and overtime. But even with the "savings" from furlough days, DHS has spent almost $19 million just in overtime pay this year.
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