Fact V. Fiction: Claims on Temporary Workers Inaccurate and Misleading

ALBANY, NY (01/26/2010)(readMedia)-- On January 14, the Civil Service Employees Association (CSEA) criticized the "Paterson administration" for spending $62 million "to systematically hire temporary workers through temporary personnel agencies in place of state workers." They also argued that the state was "paying a premium for these workers."

A closer look at these claims, however, reveals a number of inaccuracies and misleading statements. Here are the facts:

• Significant Reduction in Spending on Temporary Workers. As with all other areas of the budget, Governor Paterson has already taken significant steps to reduce spending on temporary workers. Monthly spending in executive agencies on temporary workers is down from $4.3 million in July 2008 to $2.1 million in July 2009 to $1.4 million in December 2009.

• Misleading Figures. Of the $62 million in temporary services spending that CSEA cited, only $44 million took place in executive agencies under the governor's direct control. Moreover, the $62 million is for a "nineteen month period," whereas most budget figures are typically presented on an annual basis. For fiscal year 2009-10, Executive agencies are expected to spend approximately $19 million on temporary personnel services.

• Temporary Workers Represent Small Fraction of State Payroll. In 2009-10, the state is projected to spend nearly $8 billion on salaries and fringe benefits for permanent state employees in executive agencies under the governor's direct control. Executive agencies are projected to spend less than 0.3 percent of that total ($19 million) on temporary workers during 2009-10.

• Saving Taxpayer Dollars. Using temporary workers is often the best option for taxpayers because it provides the State with the flexibility to hire workers on a non-permanent basis and because it is generally cost-effective. A representative analysis by the Division of the Budget of agency spending concluded that temporary personnel services are overall, on average, at least 10 percent less expensive than an equivalent permanent state worker. The savings varies by agency and by type of job. In some cases, in the medical field and certain trades (e.g. steamfitters and electricians with specialized skills), the rate paid to a temporary worker is higher than a state worker, but is justified based on the temporary nature of the project or the inability to recruit permanent workers. When the medical field and certain trades are excluded, the estimated savings is 42 percent.

The Paterson administration has demonstrated a willingness to work collaboratively and responsively with CSEA on the issue of temporary workers. In November 2009, the state instituted a freeze on all new temporary personnel services contracts while the Executive Branch analyzed the issues raised by CSEA. The Paterson administration will continue to carefully scrutinize spending on temporary workers, as well as all other state agency expenditures, in the midst of this extraordinary fiscal crisis. Moreover, the Paterson administration looks forward to working with New York's public employee unions, in the best interest of the State, to achieve the $250 million in workforce savings included in the 2010-11 Executive Budget.

###