Summary
PICA’s Quarterly Overtime Update for the first quarter of FY2018 showed City of Philadelphia overtime costs totaled $47 million, or 34.7 percent of the City’s annual overtime allocation— with three quarters still remaining in the fiscal year. Despite reducing first quarter overtime costs over the prior fiscal year, City officials should continue to closely monitor and manage overtime over the remainder of this fiscal year to ensure departments stay within their annual overtime allocations. Our report also found: · Seven key departments spent $43.5 million on overtime in the first quarter, or 90 percent of total overtime spending. · 15 departments spent more than 25 percent of their FY2018 overtime allocations in the first quarter. Of these 15 departments, six spent over 50 percent of their allocations, and four spent over 40 percent. · The City allocated $135.6 million for overtime for all City departments in FY 2018, $6.3 million more than in FY2017 and $28.1 million more than in FY2012—the first year in a period of steady growth in the City’s overtime allocations. The City has recently shown progress in reducing overall overtime costs, while struggling to remain within its overtime allocation. The City is on pace to again exceed its overtime allocation in FY2018, threatening the budget for total wage costs.