State Agency Overtime Costs Exceed $300M for Second Year

State employee overtime costs hit $301.3 million in fiscal 2024, just 1.3% less than the record $305.4 million paid out the previous year.

Costs likely would have exceeded last year’s high had the legislature’s Office of Fiscal Analysis’ annual overtime report not excluded the UConn Health Center, which spent $4.3 million on overtime in 2023.

Overtime spending has significant implications for taxpayers as it is one of 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, spending has increased a staggering $96.9 million—47%—in the seven years since.

Overtime Trends

Average per-employee overtime payouts for the 12 months ending June 30 increased 8.6% over fiscal 2023 to $17,682—$6,007 or 51% more than in 2017.

Connecticut spends a higher share of its payroll on overtime than neighboring states—over 11% of the total in 2023, compared with 5.9% in Massachusetts, 4.7% in New York, and New Jersey’s 4.2%.

CBIA’s Chris DiPentima said while the labor shortage continues to impact state agencies and is a contributing overtime factor, policymakers must address outdated workplace practices.

He referenced the CREATES report, produced for the Lamont administration in 2021, that identified reforms that could generate between $70 million to $100 million in annual taxpayers savings.

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

“It’s incredible that state overtime costs have soared almost 50% over the last seven years, particularly when there are real cost-saving solutions available.”

Overtime Spending: Top Five Agencies

Department	FY 2024 Overtime	FY 2023 Overtime	$ Difference	% Difference
Correction	$106.5 million	$107.3 million	$788,395	0.7%
Mental Health & Addiction Services	$61.96 million	$63.78 million	($1.83 million)	-2.9%
Emergency Services & Public Protection	$43.71 million	$42.34 million	$2.03 million	4.9%
Developmental Services	$42.72 million	$42.24 million	$478,821	1.1%
Children & Families	$26.25 million	$21.36 million	$4.89 million	22.9%

Fiscal 2024 overtime spending increased $6.35 million (2.3%) at the five state agencies responsible for more than 93% of all overtime costs.

The Department of Correction accounted for 36% of all overtime costs, spending $107.3 million, up 0.7% from last year.

The number of DOC employees who were paid overtime declined by 3.5% over fiscal 2023 to 4,995.

Overtime at the Department of Mental Health and Addiction Services fell $1.83 million to $61.96 million, a 2.9% decline.

The Department of Emergency Services and Public Protection saw a 4.9% increase to $43.71 million, while the Department of Developmental Services spent 1.1% more on overtime.

Overtime costs rose $4.89 million (22.9%) to $26.25 million at the Department of Children and Families.

Other Agencies

Overtime spending at all other state agencies fell $10.42 million to $19.41 million (-34.9%) in fiscal 2024.

The Department of Social Services accounted for more than half of that decline, with agency costs falling $5.52 million to $7.53 million (-42.3%).

Overtime costs fell $344,461 to $810,168 (-29.8%) at the Department of Social Services and declined $253,593 to $1.51 million (-14.4%) at the Connecticut Technical Education and Career System.

While the number of state employees paid overtime declined, the average payment increased to $17,682.

The Department of Veterans Affairs spent $2.09 million, up 15.1% over last year, with overtime rising 26.9% at the Office of the Chief Medical Examiner.

While the number of state employees paid overtime declined by 1,708 in fiscal 2024 (-9.1%), the average payment increased $1,394 to $17,682.

DESPP employees were paid an average $36,578—the highest of any agency—followed by DMHAS ($25,825), DDS ($22,319), DOC ($21,481), and the Office of Legislative Management, where 78 workers earned an average $12,064.

Capitol police officers employed by OLM accounted for four of the five top individual overtime recipients, including the highest payout of $52,556.