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State Saves Millions on Overtime by Eliminating Waste, Fraud and Abuse (Wednesday, May 02, 2012)



From Governor Walker's Press Office

May 2, 2012

For Immediate Release 

 

State Saves Millions on Overtime by Eliminating

Waste, Fraud and Abuse

Governor Walker’s Commission identifies ways to save on overtime costs, operate more efficiently, and implement cost saving plans and the Department of Corrections shows results.

Madison– Governor Scott Walker today announced the Department of Corrections has saved more than $2.1 million in overtime costs in the first 3 months of 2012. Compared to 2011, overtime costs have dropped sharply and are a direct result of a new compensation plan and work rules made possible by Governor Walker’s reforms ending collective bargaining abuses.

“State employees deserve to be compensated fairly for the hard work and time they give to the state,” Said Governor Walker. “Unfortunately, compensation in overtime was abused. Over the years, because of collective bargaining contracts, state leaders were unable to make common sense reforms to end this abuse. Because of the reforms we put in place, state leaders are taking the necessary steps to end the abuse, saving millions for taxpayers, and continuing to fairly compensate state workers.”

A new compensation plan made possible by Governor Walker’s reforms ends sick leave abuses and inflated overtime costs. Previously, master contracts as well as 52 local contracts inefficiently governed overtime. Among those provisions, overtime was offered to those with the most seniority first, which guaranteed the highest cost to the taxpayers. Under Governor Walker’s reforms, a new overtime policy not only saves money, but offers all employees a fair opportunity to earn overtime pay if they choose, which means junior employees will also have the opportunity to earn more for their families.

Governor Walker’s reforms will also allow the Department of Corrections to explore modern payroll systems that will make the agency more efficient. This was another concern identified by the Governor’s Waste, Fraud, and Abuse Commission.

The Commission found sick leave overtime at the Department of Corrections more than doubled other state employees. After the new compensation plan and work rules have went into effect, sick leave hours dropped by 27.9% compared to the prior month under the old rules and policies.

Overtime abuse has been a reoccurring subject of audits and media reports over the years. However this is the first time a Governor has actually taken adequate steps to solve the problem.

Articles on state agency overtime from years past:

Guards use sick days to inflate salary

Milwaukee Journal Sentinel

May 3, 2008

 

Some top $100,000 in overtime

Milwaukee Journal Sentinel

June 12, 2008

 

Corrections official reviews sick leave use

Milwaukee Journal Sentinel

May 8, 2008

 

Corrections officers rack up paychecks

Oshkosh Northwestern

May 5, 2008

 

Editorial: The sick leave shuffle

Milwaukee Journal Sentinel

May 7, 2008

 

Some state workers more than doubling pay with overtime

Milwaukee Journal Sentinel

May 17, 2010

 

Nine state workers earned more than $65,000 each in overtime

Milwaukee Journal Sentinel

May 19, 2011

To read more about saving money by eliminating waste, fraud and abuse in government, go to Governor Walker’s website, www.walker.wi.gov and click on “reform”.

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