Background
In October 2001, due to the rising State budget deficit and flattening local revenues, the County instituted a hiring freeze. At the time of the freeze, there were 530 vacancies in all County departments, representing a 10.7% vacancy rate. The primary objectives of the freeze were to reduce the likelihood of layoffs should there be a need to reduce our workforce, maintain a vacancy rate of 9% or higher throughout the year and generate salary savings in excess of $8 million to increase reserves and address short-term needs.
At the time the freeze was implemented, criteria were developed to determine whether or not vacant positions were exempt from the freeze. Among those positions exempted were emergency service positions, such as Sheriff Patrol, Hospital staff, Hazardous Materials and Bio-terrorism response. Also exempted were fully-funded and Non-General Fund positions. All other positions were frozen. However, a departmental "Request for Exemption" form was created for those instances when departments wanted an opportunity to request an exemption for a position that didn't meet the standard criteria. |
Discussion
The primary goals of the freeze have been achieved. As of June 3, there were 495 vacancies, representing a 9.8% vacancy rate. Though it is difficult to determine the exact amount of salary savings resulting from the hiring freeze, by comparing this year to last in terms of percentage of budget expended, we are on pace to save an additional 1.5% over last year, which represents approximately $6 million. The reason that the $8 million figure will not be met is a combination of added extra help and overtime pay to meet the workload issues created by the freeze and more positions were exempted than initially estimated.
In early April, my office directed departments to provide feedback on service impacts as a result of the vacancies. Items requested included whether or not the positions were exempt from the freeze and by what criteria, how the positions were funded, were extra help or outside contractors used to cover the workload, and what were the impacts on services by keeping the positions vacant. As it turns out, approximately two-thirds of all vacant positions were exempted from the freeze. Departments returned information on 470 vacant positions, of which 318 were exempt. Over half were exempt because they were either fully-funded or they were in a Non-General Fund department (161); emergency response accounted for 103 vacancies, primarily in the Hospital (91); and the balance was comprised of JPA positions (16), mandated Maintenance of Effort positions (16) and exemptions granted by my office (22). It should be noted that 26 exempt vacancies are due to the delay in opening the Canyon Oaks Youth Center. Of the 152 positions that were non-exempt from the freeze, feedback received indicates that service delivery was significantly impacted by 119 of those vacancies as extra help was used to support the workload of 69 positions and departments responded that negative impacts on services, coverage and employee morale would eventually impact 50 others. Finally, it was noted that 33 vacancies resulted in minimal or no impact on services, 18 of which would only be filled if funding were available. The complete report is attached for your review.
I recommend that the freeze continue until final budget hearings in September and that a determination on whether to continue, end or modify the freeze be made at that time. I would like to take this opportunity to thank department heads and staff for their efforts in providing outstanding public service to the residents of San Mateo County during these difficult economic times.
Vision Alignment
This impact analysis of the hiring freeze on service delivery keeps the commitment to Responsive, Effective and Collaborative Government and goal number 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.
Attachment |
