Executive Branch Staffing Adequacy Study DEPARTMENT OF LEGISLATIVE SERVICES 2018 Executive Branch Staffing Adequacy Study Department of Legislative Services Office of Policy Analysis Annapolis, Maryland January 2018 Contributing Staff Writer(s) David B. Juppe Sierra S. Boney Jason A. Kramer Jared S. Sussman Patrick S. Frank Steven D. McCulloch Laura M. Vykol Andrew D. Gray Jordan D. More Ken Weaver Garret T. Halbach Rebecca J. Ruff Benjamin B. Wilhelm Lindsey Holthaus Jody J. Sprinkle Tonya D. Zimmerman Research Interns Erin Busch Alyssa Cooper Chinelo Ezeani Benjamin Straube Mikayla Walker Reviewers Ryan Bishop Victoria L. Gruber David C. Romans For further information concerning this document contact: Library and Information Services Office of Policy Analysis Department of Legislative Services 90 State Circle Annapolis, Maryland 21401 Baltimore Area: 410-946-5400 ● Washington Area: 301-970-5400 Other Areas: 1-800-492-7122, Extension 5400 TTY: 410-946-5401 ● 301-970-5401 TTY users may also use the Maryland Relay Service to contact the General Assembly. Email: [email protected] Home Page: http://mgaleg.maryland.gov The Department of Legislative Services does not discriminate on the basis of age, ancestry, color, creed, marital status, national origin, race, religion, gender, gender identity, sexual orientation, or disability in the admission or access to its programs, services, or activities. The Department’s Information Officer has been designated to coordinate compliance with the nondiscrimination requirements contained in Section 35.107 of the Department of Justice Regulations. Requests for assistance should be directed to the Information Officer at the telephone numbers shown above. ii Contents Letter of Transmittal .................................................................................................................... iii Executive Summary ..................................................................................................................... vii Chapter 1 Study Objectives and Methodology .................................................................... 1 Background ............................................................................................................ 1 Research Objectives ............................................................................................... 2 Methodology .......................................................................................................... 3 Data Comparability 3 Data Comparison 5 Chapter 2 State and Local Data Trends ............................................................................... 7 National Trends in Public-sector Employment ...................................................... 7 U.S. Census Data ................................................................................................... 7 Chapter 3 Staffing Shortfalls in Maryland State Government .......................................... 11 Quantifiable Personnel Shortfalls .......................................................................... 11 Department of Public Safety and Correctional Services .................................. 12 Department of State Police ............................................................................... 13 Maryland Department of the Environment ....................................................... 14 State Department of Assessments and Taxation ............................................... 14 Office of the Public Defender ........................................................................... 15 Maryland Health Department ........................................................................... 16 Department of Juvenile Services ...................................................................... 19 Maryland Commission for Civil Rights ........................................................... 19 Department of General Services ....................................................................... 21 Historic St. Mary’s City Commission .............................................................. 22 Secretary of State .............................................................................................. 23 Fiscal Impact .......................................................................................................... 24 Chapter 4 Vacancy Trends .................................................................................................... 27 High Vacancy Rates ............................................................................................... 27 Chapter 5 Employee Compensation Issues .......................................................................... 33 History of General Salary Increases and Increments in Maryland ........................ 33 History of Changes to Employee Benefits ............................................................. 34 State Compensation Growth Compared to Competing Levels of Governments ... 35 Compensation Comparability Studies .............................................................. 37 v Chapter 6 Unintended Consequences ................................................................................... 43 Interagency Agreements with Higher Educational Institutions ............................. 43 Increased Use of Contractual FTEs ....................................................................... 43 Direct Service Workers Performing Administrative Duties .................................. 47 Outsourcing the Private Sector............................................................................... 47 Department of Information Technology ........................................................... 47 Department of General Services ....................................................................... Chapter 7 Summary and Recommendations ....................................................................... 51 Summary ................................................................................................................ 51 Recommendations .................................................................................................. 52 Short-term Strategies ........................................................................................ 52 Long-term Strategies ........................................................................................ 53 Appendix 1 Analysts’ Writeups ................................................................................................. 55 Appendix 2 Methodology .......................................................................................................... 193 Appendix 3 Data ........................................................................................................................ 197 vi Executive Summary The number of employees in the requiring direct service workers to assume Executive Branch in Maryland, exclusive of more administrative duties; and higher education employees, has decreased by over 6,500 positions between 2002 and 2018. • low compensation levels have impeded This is a trend that is not specific to Maryland, the ability of the State to recruit and retain as U.S. Census data shows that state and local employees. State employees earn government workforces contracted following significantly less than comparable the 2001 and 2008 recessions and have not positions and while salary increases have rebounded to pre-recession levels. Of note, kept pace with inflation since 2008, they Maryland is ranked nineteenth in population, have not kept pace with other levels of on a per capita basis, but ranks thirty-second government. Maryland is a wealthy state in the number of State and local employees per and ranks fifth in personal income. A 10,000 population. The Department of national study found that the average State Legislative Services (DLS) reviewed laws, salary ranks twenty-ninth in the United rules, regulations, caseload standards, and best States when factoring in the cost of labor. practices related to agency staffing and can quantify the need for 2,631 positions Recommendations (1,126 new authorized positions and the need to fill 1,505 existing positions) in 11 agencies. The loss of positions, increased vacancies, Although anecdotal evidence suggests and erosion of competitive employee additional staffing shortfalls, DLS did not compensation has occurred over the course of account for any position needs that could not 16 years and three Governors. Reductions in be specifically quantified. positions and the failure to increase pay have been the result of years of post-recession In the course of this study, additional cutbacks following economic downturns in issues came to light. These included: 2001 and 2008. Given the magnitude of the problem, there are no quick fixes to adopt, and • high vacancy levels throughout State it will likely take many years to address the government as well as in specific position issues raised in this study. DLS recommends classifications, due in part to high levels of a number of short- and long-term strategies to turnover expectancy assumed in agency begin addressing the issues, including annual budgets but also due to uncompetitive increases in employee compensation, selected compensation; salary increases for high vacancy positions, reviews of hiring standards, the provision of • adoption of extraordinary measures to new positions, a review of the cost make up for the loss of authorized effectiveness of outsourcing to the private positions in order to meet workloads, sector versus State employees, a review of including interagency agreements with interagency agreements with higher education higher education institutions, hiring more institutions, and potential statutory changes. contractual full-time equivalents, outsourcing to the private sector, and vii viii Chapter 1. Study Objectives and Methodology Background Since hitting a peak of 55,980 positions in fiscal 2002, Executive Branch positions in Maryland (exclusive of higher education and the Judicial and Legislative branches, which have position creation autonomy) have decreased by over 6,500, to 49,469 regular positions in fiscal 2018. This is the result of multiple rounds of cost containment after recessions in fiscal 2001 and 2008. Position abolitions have been implemented by three Governors on a prorated basis relative to agency size. Anecdotal evidence in budget analyses prepared by the Department of Legislative Services (DLS) suggested that a number of agencies were understaffed, leading DLS to undertake a more comprehensive review of Executive Branch staffing during the 2016 and 2017 interims. Exhibit 1.1 illustrates trends in the number of authorized regular positions in the State between fiscal 2002 and 2018. Overall, the number of positions peaked at just over 81,000 in fiscal 2002 and 2008, prior to actions to address shortfalls following the 2001 and 2008 recessions. As shown, agencies have declined in the number of authorized positions since fiscal 2002, while higher education institutions have grown by nearly 5,000 positions in the same timeframe. Exhibit 1.1 Maryland Authorized Regular Position Trends Fiscal 2002-2018 60,000 100,000 55,000 h nc 50,000 80,000 a 45,000 T r 40,000 o B t by 3305,,000000 60,000 al P ns 25,000 40,000 os o 20,000 it ti 15,000 io os 10,000 20,000 ns P 5,000 0 0 Judicial and Legislative Higher Education Executive Branch Total Positions Source: Department of Budget and Management; Department of Legislative Services 1