Overtime Costs in O.C. Double Since 1994 Bankruptcy

Spending on overtime costs nearly doubled since Orange County’s historic bankruptcy in 1994, according to documents obtained this week under the California Public Records Act.

The county’s 15,000-person work force received $31.5 million in overtime during the fiscal year ending last month, compared with $26.8 million the year before and $17.3 million in 1995.

And in the last two years, travel costs for county employees rose 83%--from $715,000 in 1997 to $1.3 million today.

To some critics, the numbers suggest that county officials have loosened up on the austere spending habits established during the financial crisis.

But leaders defended the expenditures, explaining that it’s often cheaper to pay overtime than hire additional workers. They also said the bills are rising in part because employees have received pay increases for the first time since the bankruptcy. With high hourly wages, overtime wages also rise.

As for the higher travel bills, officials said they consider additional lobbying trips to Sacramento and professional training to be wise investments.

“Our spending has never been this high before. But if we don’t make the trips to talk to politicians, you don’t get your two cents in,” said Larry Leaman, director of the Social Services Agency, which increased spending this year by 80%. “We paid some dear prices when travel spending was frozen. We had some legislation passed that drove us nuts.”

At the Social Services Agency, travel spending rose from $155,000 in 1997 to $279,000. The Health Care Agency spent $147,000, up from $85,000 the previous year. Officials attributed the travel primarily to employee training conferences.

The Sheriff’s Department saw the biggest jump in overtime costs, from $15.7 million in fiscal year 1997-1998 to $19.7 million the following year.

Assistant Sheriff Doug Storm said there were several reasons for the change, including increased workload and new labor contracts that allow deputies based in the jails to work extra hours.

Other departments seeing bigger overtime bills included John Wayne Airport, the marshal’s office and the district attorney’s office.

Gary Burton, the county’s chief financial officer, stressed that the county doesn’t hand out overtime liberally and that managers must approve all extra work beforehand.

“We’re aware of every dollar we’re spending,” he said.

But some community activists, who have long been critical of the way county government spends money, expressed concern at the jump in overtime and travel costs.

“I guess they think the residents have forgotten about the bankruptcy,” said Carole Walters, president of the Committees of Correspondence, an anti-tax group formed in the wake of the bankruptcy.

Supervisor Charles Smith said the county needs to carefully monitor such spending.

“It’s hard to say if they’re at an acceptable level,” he said. “I think it’s something that needs to be watched, and questioned, but I don’t think we need to run up the red flag.”