Gov’t overtime pay down 67 percent

The Tenorio administration has pared down overtime pay for government personnel by some 67 percent over the past two years that translated to savings of more than $8 million.

In a report released yesterday as part of a series of analysis on public spending, the Department of Finance said departments and agencies forced between 33 percent to 100 percent reduction in overtime costs in line with the austerity measures.

Finance officials used the last year of the previous administration to compare current expenditures, based on the review drawn up in the transition prior to the installation into office of Gov. Pedro P. Tenorio in January 1998.

According to DOF, overtime costs dropped from more than $12 million in Fiscal Year 1997 to $4 million in FY 1999, which it has attributed to the belt-tightening measures the governor has implemented to boost government savings.

“As a result of this review, the governor ordered that each agency evaluate its overtime expenditures, revise employees’ schedules, and reconsider staff workload’s so that unnecessary overtime would be eliminated,” it said.

The report claimed the governor’s office has cut the overtime expenditures by 89 percent, while the Department of Public Works by almost 98 percent — from around $750,000 in FY 1997 to $15,000 some 11 months into the current year.

The Department of Public Safety, traditionally the highest in accumulated overtime pay, alone slashed its spending by half or more than $2 million in savings during the same period.

“Some agencies still show considerable overtime. However, this is unavoidable as they are required to maintain public safety, health, immigration and customs, emergency management and support for youth and families,” said the report.

So far, the administration has realized over $52 million in spending cuts in such areas as travel, professional service contracts as well as elimination of several government positions over the past two years.

Finance officials said these savings have gone to other essential needs of the community, including payment of tax rebates and earned income credit, additional funding for public schools and medical referral program.

A forthcoming report will detail additional “eliminated waste” from government spending in so-called luxury cars, the DOF said.

The island has been heavily battered by the two-year recession in Asia, NMI’s main source of tourists and investments, plunging down revenues and forcing closure of several businesses here.