State Employee Overtime Jumps 10% in First Quarter

Connecticut state employee overtime costs jumped 9.7% in the first quarter of fiscal 2026 compared with the same period last year.

That puts annual agency overtime spending on pace to hit a record $317.6 million this fiscal year, according to the Office of Fiscal Analysis’ quarterly overtime report, about $1.4 million more than the previous high set last year.

Overtime spending has significant implications for Connecticut taxpayers as it is among the factors used for calculating state employee pensions.

Failure to control costs places additional pressure on the state’s long-term liabilities burden, one of the highest per capita in the country.

Overtime costs hit a 10-year low in 2017, following passage of legislation requiring quarterly disclosures of agency spending.

However, annual spending has increased more than $112 million—over 55%—in the eight years since.

‘Disservice to Taxpayers’

CBIA president and CEO Chris DiPentima called the failure to control soaring overtime costs “a disservice to taxpayers, who deserve better.”

“It’s double jeopardy—taxpayers pay now and then get hit again when overtime costs drive up overall state employee retirement liabilities,” he said.

DiPentima said Connecticut’s overall annual per capita state spending will reach $6,873 in 2027, twice the national average and 42% above 2009 levels.

“We’ve got an affordability crisis in Connecticut—particularly with energy, housing, and childcare—and that’s not going to get resolved if policymakers don’t address state spending,” he said.

“Yet there are those in the legislature who want to dismantle the state’s critical fiscal guardrails, raise taxes, and continue to boost spending levels way above what other states spend.”

DiPentima acknowledged that while the labor shortage continues to impact state agencies and is a contributing factor in some instances, “outdated and inadequate workplace practices must be addressed.”

“Policymakers are sitting on a report that identified common sense reforms that will generate between $70 million to $100 million in annual taxpayer savings,” he said.

“Those recommendations included capping pensionable overtime, modernizing workforce management, improving hiring processes, and strengthening overtime oversight and workers’ compensation practices.”

Overtime Spending: Top Five Agencies

Department	FY 2026 Overtime*	FY 2025 Overtime**	$ Difference	% Difference
Correction	$29.45 million	$25.14 million	$4.31 million	17.2%
Emergency Services & Public Protection	$15.84 million	$13.33 million	$2.5 million	18.8%
Mental Health & Addiction Services	$14.35 million	$14.38 million	($33,424)	-0.2%
Developmental Services	$9.74 million	$9.8 million	($64,694)	-0.7%
Children & Families	$7.36 million	$5.99 million	$1.36 million	22.6%

*July 1, 2025-Sept. 30, 2025. **July 1, 2024-Sept. 30, 2024. Source: Office of Fiscal Analysis.

In the first quarter of fiscal 2026, costs increased $8.1 million (11.8%) at the five state agencies responsible for more than 96% of all overtime spending.

The Department of Correction accounted for 37% of all agency spending in the first quarter, paying out $29.45 million (17.2%)—even with 90 fewer employees collecting overtime.

DOC’s annual overtime costs have increased 73% since 2017, while the state’s prison population has declined 22% over the same time.

DOC’s annual overtime costs have increased 73% since 2017.

In calendar 2025 to date, 36 DOC employees were paid more than $100,000 each in overtime, with one employee collecting $230,000.

The Department of Emergency Services and Public Protection spent $15.84 million through Sept. 30, up 18.8% from the same period the previous year.

First quarter overtime costs declined 0.2% at the Department of Mental Health and Addiction Services and fell 0.7% at the Department of Developmental Services.

Overtime spending rose 22.6% in the first quarter to $7.36 million at the Department of Children and Families.

Other Agencies

Overtime spending at all other state agencies fell $1.03 million to $2.65 million (-28%) in the first quarter.

The Department of Social Services accounted for 85% of that decline, with agency costs falling $880,690 to $368,324 (-70.2%).

DSS overtime spending declined by $2.4 million in fiscal 2025 and by $5.5 million the previous year.

DESPP employees collected an average $14,397—the highest of any agency for the quarter.

First quarter costs fell 42.6% to $74,084 at the Connecticut Technical Education and Career System, and dropped 51.7% at the Department of Public Health.

The Department of Veterans Affairs saw overtime increase 6.7% to $576,819 in the first quarter, while the Judicial Department posted a 6.6% jump.

DESPP employees collected an average $14,397—the highest of any agency for the quarter—followed by DMHAS ($7,330), DOC ($6,997), DDS ($6,315), and DCF ($3,423).