State Overtime Spending on Record $336M Pace

Connecticut state agencies are on track to spend a record $336.2 million on employee overtime this fiscal year—$19.9 million or 6.3% more than the previous high set in 2025.

Agencies spent $88.7 million on overtime in the second quarter of fiscal 2026, 11.7% more than the previous quarter.

Through the second quarter, overtime costs hit $168.1 million, $10.2 million (6.5%) more than the same period 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.

‘Double Jeopardy’

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

However, annual spending has increased by more than $131 million—about 65%—in the following nine years.

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 added that with the state facing a budget deficit for the first time in seven years, it was “even more critical that lawmakers control spending.”

“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.

Overtime Spending: Top Five Agencies

Department	FY 2026 Overtime*	FY 2025 Overtime**	$ Difference	% Difference
Correction	$63.73 million	$56.11 million	$7.62 million	13.6%
Mental Health & Addiction Services	$31.5 million	$31.07 million	$432,269	1.4%
Emergency Services & Public Protection	$28.09 million	$27.14 million	$1.76 million	6.5%
Developmental Services	$21.09 million	$21.11 million	($19,255)	-0.1%
Children & Families	$16.54 million	$14.22 million	$2.33 million	16.4%

*July 1, 2025-Dec. 31, 2025. **July 1, 2024-Dec. 31, 2024. Source: Office of Fiscal Analysis.

In the first half of fiscal 2026, costs jumped $12.12 million (8.1%) over the same period in 2025 at the five state agencies responsible for more than 96% of all overtime spending.

The Department of Correction accounted for 38% of all agency spending in the first two quarters, paying out $63.73 million—even with 58 fewer employees collecting overtime than in the first half of 2025.

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

DOC overtime costs have increased 73% since 2017, while the state’s prison population has declined more than 22%.

The Department of Mental Health and Addiction Services spent $31.5 million on overtime through the first half of the year, up 1.4% over the same period in 2025.

Costs rose $1.76 million to $28.9 million at the Department of Emergency Services and Public Protection.

Overtime spending fell 0.1% to $21.1 million at the Department of Development Services and rose 16.4% to $2.33 million at the Department of Children and Families.

Other Agencies

Overtime spending at all other state agencies fell $1.9 million to $6.38 million (-23%) through the first half of fiscal 2026.

The Department of Social Services accounted for more than two-thirds of that decline, with agency costs falling $1.3 million to $1.67 million (-43.7%).

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

While the number of state employees collecting overtime fell 1.8%, the average payout increased 8.5%.

Overtime costs fell 26.7% to $960,938 at the Department of Energy and Environmental Protection, and dropped 33.6% to $195,727 at the Connecticut Technical Education and Career System.

The Judicial Department posted a 16.3% jump to $1.14 million and the Department of Veterans Affairs saw overtime increase 1.8% to $1.14 million.

While the number of state employees collecting overtime fell 1.8% to 15,064 in the first two quarters, the average payout increased 8.5% to $11,162.

DESPP employees collected an average $14,397—the highest of any agency—followed by DMHAS ($14,410), DOC ($13,961), DDS ($12,705), and DCF ($7,097).