Governor Deval Patrick's Budget Recommendation - House 2 Fiscal Year 2011

Governor's Budget Recommendation FY 2011


Full Time Equivalent (FTE) Assumptions

Chapter 29, Section 6 states that “The operating budget shall indicate the number of positions proposed to be authorized for each state agency or such other public instrumentality for the ensuing fiscal year, the number of positions for each state agency in the current and ensuing fiscal years and such other information as may be held to explain the anticipated results of the proposed expenditures”.

To address this requirement, the House 2 recommendations include employee counts summarized at the Government area level.  Additional detail is included throughout the Budget Recommendations to indicate the employee level within specific departments.

Workforce Planning Goals

Beginning in fiscal year 2009, the Executive Office for Administration and Finance (A&F) and the Human Resources Division have worked together to implement clear policies surrounding employees. Each fall, A&F engages each agency in a spending plan process in which each account is evaluated to determine how funds will be spent for the current fiscal year.  This requires a detailed description of employees for the current year - including those currently on staff, positions that are open and intended to be filled and new positions for which funding is available.  The goals of the employee caps that have been in place since fiscal year 2009, at the start of the fiscal crisis, and the subsequent review of all employee spending are to:

  •    Restrain Growth in State Employee Levels - Since payroll is a large portion of many agency expenditures, and reductions in force can take so long that savings cannot be realized in a fiscal year, caps are needed to constrict hiring.  Although some hiring may have small costs for the current year, the full year value of new staff have budget impacts that must be considered.

  •    Mitigate Shifts to Other Funding Sources – Employees come onto the state payroll several ways including the operating budget (FTEs and contractors), the capital budget, federal grants and trusts.  All sources are carefully reviewed to ensure we are maintaining compliance with employment laws and also to ensure that we are not using one time sources to pay for ongoing costs.

  •    Manage Overtime Costs – Although hiring restrictions are important, overtime costs must be considered to ensure that proper staffing levels are maintained for public health and safety where responsibilities are 24 hours / 7 days per week.  Oftentimes, the savings of FTE restrictions are simply shifted to higher overtime.  Therefore, prudent management of both overtime and staffing levels must be evaluated.

    While A&F continues to work with Executive Branch agencies to develop comprehensive and affordable staffing plans, it is also a goal to maintain accountability and transparency in public reporting of staffing levels.

    Affect of the Budget on Personnel to Date

    FTE Caps

    Since the fall of 2008 The Administration has provided strict FTE caps to the Executive Branch Departments.  The caps are implemented at the department level and reviewed regularly by A&F to ensure agencies are taking the necessary steps to live within capped levels.

    FTE caps are meant to be consistent with amounts allocated for FTE spending.  If an agency does not project that enough funding is available to maintain an FTE level, a “reduction in force” plan must be submitted to the Human Resources Division within A&F.  These plans are reviewed for their impact on public health and safety.

    Reduction in Workforce

    As a result of the fiscal crisis, all Agencies are being asked to do more with less.  Since the fall of 2008 the state workforce for jobs in the Executive Branch funded with operating dollars has declined by 2,111 jobs.  The reduction can be attributed to layoffs, attrition and retirement across all agencies in the Executive Branch.

    A table displaying the variances between Executive Budgetary Jobs for the Benchmark Dates of 1/20/07, 10/11/08, 1/2/10 and the Current Pay Period of 1/16/10.  The signifcant variance from the Benchmark Date of 10/11/08 to the Current Pay Period of 1/16/10 is a decrease in Executive Budgetary Jobs of 2,111.


    The Governor is also requiring approximately 4,000 managers within the executive branch to take up to nine furlough days in fiscal year 2010. This is in addition to furloughs required of managers in fiscal year 2009.  Additionally, since 2008, the Governor and the Legislature have increased employee health care contributions, premium contributions and co-pays for health services, as a means of achieving budgetary savings.

    Union Contributions

    The Governor called for renewed union negotiations and contributions in October, as the Administration identified a $600 million revenue shortfall in the current fiscal year. To date, the Governor has reached agreement with the leaders of four state employee unions representing 30,000 state employees. The Patrick-Murray Administration has reached agreement with union workers on a new contract that will save the Commonwealth millions of dollars and help mitigate employee layoffs.

    Members of SEIU Local 509 and members of Unit 2 represented by AFSCME Council 93 have ratified contract revisions that will save taxpayers over $50 million over the next three years, including roughly $14 million this fiscal year. It is the first time since collective bargaining was established in the Commonwealth that a Governor has successfully negotiated such compromises.

    If approved by the Legislature, the new contracts will save tens of millions of dollars through a combination of delayed wage increases and eliminating some payments to the Health and Welfare fund. 

    The savings from these revisions will allow the Administration to protect key programs and services and prevent some employee layoffs.

    H.2 Employment Levels

    In reviewing the reductions needed to live within fiscal year 2011 available funding, each agency will be required to critically evaluate their employee level and determine if a reduction in this area is needed to maintain a balanced budget.  The fiscal year 2011 H.2 recommendation estimates 66,575 FTEs.  This amount includes FTEs from both Executive and Non-Executive departments as well as positions funded from the operating accounts listed within the budget.

    Fiscal Year 2011 Planning
    Government Area Approved FY 2010 Approved FY 2011
    Budgetary Budgetary
    Administration & Finance 2,653 2,610
    Education 545 546
    Energy & Environmental Affairs 2,113 2,033
    Health & Human Services 19,895 19,361
    Housing & Economic Development 728 713
    Independents 297 285
    Labor & Workforce Development 305 307
    Public Safety 8,546 10,609
    Transportation - -
    Executive Total 35,083 36,465
    Executive Adjusted Total* 35,083 34,419
    Higher Education Campuses 14,296 14,296
    Independents 9,755 9,027
    Judiciary 7,608 5,831
    Legislature 956 956
    Non-Executive Total 32,615 30,110
    Non-Executive Adjusted Total* 32,615 32,156
    Grand Total 67,698 66,575
    *H.2 recommends re-organizing the Department of Community Supervision (formerly Commissioner or Probabtion and Community Corrections) from the Judiciary to the Executive Office of Public Safety.


    For fiscal year 2011, FTE caps will continue to be in place in order to continue to manage the state workforce.  For the Executive Branch, head count will be managed for all funding sources but specifically for the operating budget funds recommended in the H.2 recommendation. 

    Key initiatives Impacting the State Workforce

    MassDOT Reform

    In June 2009, Governor Patrick signed Chapter 25 of the Acts of 2009 creating the new, streamlined Massachusetts Department of Transportation (MassDOT).  MassDOT represents a merger of the former Executive Office of Transportation and Public Works (EOT) with the Massachusetts Turnpike Authority (MTA), the Massachusetts Highway Department (MHD), the Registry of Motor Vehicles (RMV), the Massachusetts Aeronautics Commission (MAC) and the Tobin Bridge.  The new organization also assumed responsibility for many of the bridges and parkways formerly operated by the Department of Conservation and Recreation (DCR).  Implementing the reform act has lead to changes in the classification of transportation FTEs, namely the transition of the 1,200 former EOT and DCR budgetary FTEs to an off budget trust fund. 


    A year ago, Governor Patrick proposed the alignment of all 14 Massachusetts State and County Sheriffs under the state budgeting and finance laws. The Legislature approved the Governor’s proposal through passage of the sheriff transfer legislation, Chapter 102 of the Acts of 2009, which was approved by the Governor on August 6, 2009. This act transferred the remaining 7 county sheriff departments to the Commonwealth effective January 1, 2010. Since then, sheriff departments have successfully transitioned onto the state budgeting and accounting system and all sheriff employees have been placed on state payroll, increasing the state FTE count by approximately 2,750 employees. However, this does not represent a parallel increase in state spending as sheriff operations prior to the transfer were predominantly funded by the Commonwealth. Additionally, deeds excise revenue previously funding sheriff operations will now be remitted to the Commonwealth.

    Information Technology Realignments

    Because of an initiative to transfer all information technology employees to secretariats, those employees that have routinely been funded from off-budget sources are being transferred into Intragovernmental Service Fund accounts where they will report to staff at the secretariat-level, but continue to be paid from the off-budget sources.  This represents an “increase” of nearly 300 FTEs on the overall totals.

    Contractor / Capital Conversions

    Given the cost associated with paying for employees from capital funds and the renewed focus on wage enforcement efforts, every effort continues to be made to convert contract employees to full-time equivalents, and to transfer employees onto the operating budget.  Along with conversions that have already been made, H.2 includes an outside section that allows for certain capital and operating costs to be exchanged so that appropriate operating dollars spent on capital needs can be shifted to the capital budget and vice versa.  This section will have an impact on our budgeted employee level but it should be noted that these are not new state employees, they are just new to the operating budget.

    Other Considerations

    Like all departments, the non-executive branch agencies will be working to evaluate impacts on employees.  Additionally, because funding at the Higher Education campuses comes from various sources, some employee impacts may be mitigated.  Additionally, certain FTE increases due to compliance with legal settlements and to address needs around public health and safety must be considered.

    Equal Opportunity Employment / Employee Diversity

    Diversity and Equal Opportunity under the Patrick-Murray Administration continues to flourish. Since the beginning of this administration there has been a conscious effort to increase the diversity of our employee base with respect to the women and minority groups.

    Focus was first placed on recruitment and outreach, in an effort to increase the overall representation of women and minorities in our workforce.  As of the end of fiscal year 2009, women comprised 52.4% of the overall workforce. Minorities represented 22.3% of our workforce which represents a 3.8% increase overall.

    In particular there has been a focus on increasing the representation of females and minorities in the senior level management ranks.  As of the end of fiscal year 09, females represented 47.0% of our senior managers and minorities represented 12.5% of our senior managers.

    Women represent 48.2% of the Commonwealth’s non-management workforce, while minorities represent 22.1%.

    Seven-Year Trend of Executive Branch Employment by Race and Sex

































    Native Am.

































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