Summary
Preliminary reports show that City of Philadelphia overtime costs through the third quarter of fiscal year 2018 totaled $135.4 million, or 99.8 percent of the City’s $135.6 million annual overtime allocation, with three months remaining in the fiscal year. Additionally, overtime costs increased by $18.9 million over the first three quarters of fiscal year 2017, after the City had achieved a reduction in overtime spending in that fiscal year. The report also found: • Seven key departments spent $124 million on overtime through the third quarter, representing almost 92 percent of overtime spending. • Eight City departments spent more than their entire FY2018 overtime allocations, with three months remaining in the fiscal year. • Third quarter overtime costs were $42.7 million, $17.4 million higher than for the third quarter of FY2017. • Overtime spending increased for the second consecutive quarter in FY2018, following a $6.3 million reduction in the first quarter, as compared to last fiscal year. High third quarter overtime spending puts the City on pace to exceed FY2016 and FY2017 overtime spending totals, despite having achieved a reduction in total overtime spending last fiscal year. As in previous years, excessive overtime spending may again threaten the City’s budget for total wages.