Control personnel costs

Cities often find savings by cutting personnel costs, but in the medium-term, the city should think about personnel costs more strategically, since the city’s ability to deliver public services will depend on its employees’ skills, motivation, and quality of work.

ASSESSMENT

Some questions to guide your thinking

  • What personnel do you need in place to deliver on the city’s mission?
  • Are there areas or costs that can be reduced without compromising that capacity?
  • Do you have information to track and monitor those costs?
  • How easily can these costs be reduced or kept under control?
Reading

Identifying non-essential personnel costs

Government Finance Officers Association (GFOA) 5 minutes read

This reading discusses ways to manage non-essential personnel costs (including vacancies) to free up space in the budget. Monitoring overtime for non-essential tasks and reviewing the use of temporary staff can relieve fiscal pressure.

  • Relevant information is on pages 11-13.
Reading

Using safe near-term treatments to balance the budget

Government Finance Officers Association (GFOA) 30 minutes

In a crisis, what are the least-risky treatments or "low-hanging fruit" for managing finances? This guide details six techniques and describes how to set up a management system for them.

  • Leadership is crucial toward achieving a culture of frugality.
  • See page 10 for a summary of the six techniques with examples that include controlling personnel costs, pooling resources, and enhancing revenues.
Reading

Understanding the potential of work sharing programs

Detroit Chamber of Commerce 5 minutes

This resource explains the basics of Michigan’s Work Share program, one version of a program provided by 26 US states. Work sharing allows employers (including local government) to keep employees working with reduced hours while the employees collect partial unemployment benefits.

  • Shard work means cutting hours instead of workers.
Reading

Taking advantage of work sharing programs

Brookings Institute 10 minutes

The federal CARES Act encourages states and employers to use work sharing programs. The reading discusses the program’s rationale, utilization rates, and CARES Act funding for work sharing.

  • Cities can use the work sharing program to cut hours instead of employees.
  • Cities can encourage businesses to leverage work sharing.
Reading

Reducing personnel costs

Government Finance Officers Association (GFOA) 15 minutes

Personnel is the largest and most complex expenditure for most local governments. This reading discusses ways to limit and reduce personnel expenditures by moving from traditional approaches to more creative and innovative methods.

  • Relevant information is on pages 4-7.

Reading

Identifying non-essential personnel costs

This reading discusses ways to manage non-essential personnel costs (including …

Reading

Using safe near-term treatments to balance the budget

In a crisis, what are the least-risky treatments or "low-hanging fruit" for managing…

Reading

Understanding the potential of work sharing programs

This resource explains the basics of Michigan’s Work Share program, one version of…

Reading

Taking advantage of work sharing programs

The federal CARES Act encourages states and employers to use work sharing programs. …

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Reading

Reducing personnel costs

Personnel is the largest and most complex expenditure for most local governments. …