Budget committee hears payroll 'breakage' report; nursing facility and jail staffing shortages drive contract costs

County finance staff briefed the Legislature on payroll “breakage” — the difference between budgeted payroll and actual payroll spending caused by vacancies — and the fiscal effect when that unused payroll is used to cover contracted staffing and mandated overtime.

Finance staff explained that the county budgets payroll based on rosters and staffing plans, but when vacancies persist the county sometimes must hire third‑party staffing agencies or pay overtime (particularly at the nursing facility and county jail) in order to meet state‑mandated staffing levels. Those contract and overtime costs are paid from payroll appropriations that otherwise would have funded regular hires, the presenter said.

Examples and mechanics: At the nursing facility, mandated staffing means the facility must meet a minimum number of on‑duty staff. If vacancies remain, the county hires agency clinical staff to meet the requirement; the agency costs are typically higher than in‑house payroll but are funded from the same payroll appropriations because the county cannot double‑count the positions. The presenter noted the county is not alone in this problem and that long‑term workforce shortages in health care and corrections have driven reliance on contracted labor.

Fiscal impact and accounting: The finance office presented a “snapshot” method to estimate non‑local (state/federal) impacts and the local share of breakage. Staff warned the figure is a point‑in‑time estimate that should be reassessed as vacancies change. Legislators asked whether the county could budget both payroll and contracted staffing (which would duplicate appropriations); staff said that would be inappropriate and lead to double funding for the same operational need.

Ending: Legislators discussed recruitment, retention and the relative costs of recruiting permanent staff versus continuing to pay higher rates to agencies. Finance staff said the county will continue to monitor vacancies, report updates, and adjust budgets where possible.