The municipal workforce in New York City comprises hundreds of thousands of employees who provide essential public services across city agencies and authorities. This page covers CBC's work on authorized headcount levels, vacancy management, collective bargaining, overtime spending, and civil service hiring processes.
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The new administration should shift from a siloed to a flexible agencywide approach to allocate vacant positions to right-size headcount and focus resources where they are most needed.
The administration should improve recruitment and hiring systems to fill vacant positions much more quickly by reducing bureaucratic control over the hiring process.
The Mayor should pursue a collaborative relationship with labor that recognizes the shared interest in a thriving city and a sustainable, efficient municipal government that provides good careers for its employees.
The administration should work with labor to share the fiscal benefits of increased efficiency to fund raises that otherwise may not be affordable, while bringing City spending in line with revenues.
City managers and labor unions should work together to identify work rules that constrain operations and can be modernized or eliminated to increase efficiency.
Key Data
In March 2026, the CBCNY reported that half of the City's budget goes toward employee salaries and benefits, and noted that nearly 20,000 positions, including 16,000 full-time positions, were vacant.
According to the December 2024 pocket summary, the total number of full-time and full-time equivalent employees for the City of New York and its covered organizations reached 369,765 in fiscal year 2024, with 306,248 working directly for the City.
In May 2023, the CBCNY highlighted that NYCHA's monthly labor costs ballooned to $710 per unit, which was nearly six times what private landlords spend.
In September 2022, testimony showed that the City's on-board full-time and full-time equivalent headcount declined by 21,551 employees between March 2020 and April 2022, while the authorized headcount only decreased by around 2,000.
Legislation requiring two crew members on every subway train would prevent the adoption of industry-standard one-person train operations and hinder operational efficiency. Instead of mandating specific staffing levels, the focus should remain on forward-looking investments, such as the $5.4 Billion allocated in the 2025-29 capital program for signal modernization.
Recommendations related to Workforce
The Legislature should oppose S9586 and A10706, which would restrict the MTA’s use of one-person train operation.
The MTA should be allowed to implement national and international best practices for staffing and technology investments.
Legislators should focus on forward-looking investments rather than policies micromanaging subway staffing and operations.
Key Data
6%
— Percentage of 400 rail lines around the world that use two or more train operators.
$5.4 Billion
— Capital investments in the 2025-29 program to modernize subway signals.
$5.0 Billion
— Capital investments in the 2020-24 program to modernize subway signals.
New York City's budget is heavily impacted by employee salaries and benefits, which account for half of all spending. To improve fiscal management, the city must address its nearly 20,000 vacant positions by setting authorized headcount based on actual service needs rather than maintaining excessive vacancies.
Recommendations related to Workforce
The City needs to set its authorized headcount based on service needs and fiscal constraints.
The City should reduce the number of vacant positions to improve fiscal management.
The City should let agencies hire to fill those vacancies to ensure essential services are met.
Key Data
20,000
— Total number of vacant positions in the City government.
16,000
— Number of full-time positions that are currently vacant.
2.2 percent
— Average annual productivity increase in the private sector.
1,143 is the number of days Camille Joseph Varlack served in city government as Chief of Staff, Deputy Mayor for Administration and briefly First Deputy Mayor during the Adam's administration. A good Chief of Staff can make an administration—but they're rarely in the spotlight. On this episode of What's the…
New York City's government must modernize its hiring practices by shifting to a flexible, agency-wide approach to fill vacant positions and improve recruitment speed. Additionally, the administration should pursue collaborative relationships with labor unions to modernize work rules and share fiscal benefits from increased efficiency to fund employee raises.
Recommendations related to Workforce
The new administration should shift from a siloed to a flexible agencywide approach to allocate vacant positions to right-size headcount and focus resources where they are most needed.
The administration should improve recruitment and hiring systems to fill vacant positions much more quickly by reducing bureaucratic control over the hiring process.
The Mayor should pursue a collaborative relationship with labor that recognizes the shared interest in a thriving city and a sustainable, efficient municipal government that provides good careers for its employees.
The administration should work with labor to share the fiscal benefits of increased efficiency to fund raises that otherwise may not be affordable, while bringing City spending in line with revenues.
City managers and labor unions should work together to identify work rules that constrain operations and can be modernized or eliminated to increase efficiency.
Key Data
19,302
— Number of full time and full-time equivalent vacant positions in the City as of June 2025.
1.25 percent
— Annual raises assumed in the budget for the next round of collective bargaining.
New York City mayoral candidates were surveyed on their strategies for managing the city's workforce, including approaches to uniformed overtime, labor relations, and health benefits. The responses highlight varying priorities regarding staffing levels, contract negotiations, and the balance between fiscal responsibility and employee compensation.
New York City's total workforce, including covered organizations, reached 369,765 full-time and full-time equivalent employees by the end of fiscal year 2024. Simultaneously, New York State maintained a workforce of 219,053 full-time equivalent employees, while citywide non-farm employment reached 4,742 thousand in 2024.
Key Data
369,765
— Total full-time and full-time equivalent employees for the City of New York and covered organizations in FY 2024.
219,053
— Total full-time equivalent employees for the State of New York in FY 2024.
4,742
— Thousands of non-farm employees in New York City in 2024.
John (“Janno”) Lieber was confirmed as Chair and CEO of the Metropolitan Transportation Authority (MTA) in January 2022, following his nomination to that position by Gov. Kathy Hochul. Lieber has been serving as MTA Acting Chair and CEO since July 2021 and is the Authority’s 15th Chairperson since it was…
4.67 million is the total number of jobs in New York City, just shy of employment pre-pandemic. Though the economy is stable and employment generally strong, challenges remain. The economy is undergoing longer term transformation including remote work, which will affect our labor market and commercial real estate, and the…
New York State Budget Fiscal Year 2024 Major Actions and Fiscal Risks As of First Quarter Update New York City Fiscal Year 2024 Adopted Budget and Outlook
The New York City Housing Authority faces significant fiscal instability due to rising labor costs, inefficient management practices, and a declining rent collection rate. To achieve solvency, the authority must implement structural reforms, including negotiating collective bargaining savings and improving workforce productivity, rather than relying on one-time subsidies.
Recommendations related to Workforce
The City should seek to reform work rules, broaden job descriptions, reduce fringe benefit costs, and implement other operational changes to boost productivity and bring NYCHA’s operating costs in line with those of other property managers.
NYCHA should negotiate savings and increase productivity through collective bargaining.
NYCHA should improve management effectiveness and efficiency, and publicly track progress and impacts.
Key Data
$152 million
— The amount of overtime spending reached $152 million in 2022, despite efforts to reduce it by 40 percent.
1,000 positions
— NYCHA's headcount has increased by 1,000 positions since 2018, even as the number of units under management has decreased.
55 percent
— Overtime spending has increased 55 percent since 2018.
$710
— NYCHA’s labor costs have ballooned to $710 per unit per month, which is nearly six times what private landlords spend.
$146 million
— The City’s collective bargaining subsidies are projected to reach $146 million in City fiscal year 2023.
70+ is the number of agencies and authorities that report through New York State's Deputy Secretaries to New York's Director of State Operations and Infrastructure, Kathryn Garcia. She joined the podcast at a critical time for our State's economy, and after the $229 billion budget was passed by the Legislature…
New York City faces significant staffing challenges, with over 28,500 vacant positions despite an authorized headcount of 333,129, leading to service delivery issues. To address these inefficiencies, the city must streamline its hiring processes, improve employee retention, and increase flexibility in reallocating vacant positions to priority areas.
Recommendations related to Workforce
The City should move available positions to where they are needed and increase the flexibility of processes used to control, allocate, and reallocate headcount.
The City should improve and speed up the processes and procedures it uses to control and manage hiring and to administer the civil service system.
The City should institute policies to increase retention of high-performing employees.
The City should modernize civil service and job paths to increase the attractiveness of public sector employment.
The City should report transparently on vacancies, hires, separations, and promotions.
Key Data
333,129
— Authorized headcount for fiscal year 2023.
28,500
— Vacant positions as of April 2022.
23,793
— Full-time vacant positions as of April 2022.
246 days
— Median time between exam administration and results in the first four months of fiscal year 2022.
21,551
— Decline in on-board full-time and full-time equivalent staff from March 2020 to April 2022.
The New York City Police Department's fiscal year 2023 budget totals $10.9 billion, with annual increases driven primarily by collective bargaining agreements and rising overtime costs. Despite these budget adjustments, estimated overtime spending is projected to reach $743 million by the end of fiscal year 2022, necessitating improved managerial controls and policy changes to achieve meaningful reductions.
Recommendations related to Workforce
Meaningful recurring reductions in NYPD overtime depend on effective managerial controls and changes to NYPD policies and procedures.
Key Data
$10.9 billion
— Total NYPD spending in fiscal year 2023.
$140 million
— Annual increase to the NYPD City-funded budget.
$94 million
— Overtime funding increase in fiscal year 2022.
$617 million
— NYPD overtime expenditures through April of fiscal year 2022.
$743 million
— Estimated overtime spending by the end of fiscal year 2022.
New York City maintains over 18,000 vacant full-time positions, indicating that staffing challenges stem from inefficient management and hiring processes rather than a lack of available roles. Improving the flexibility of headcount allocation and streamlining civil service testing and certification are essential to filling these priority positions effectively.
Recommendations related to Workforce
The City should increase the flexibility of its systems that control, allocate, and reallocate headcount to better align vacancies with priorities.
The City should improve the systems it uses to control and manage hiring and to administer the civil service system.
DCAS should seek to leverage technology and other process reforms to speed up the hiring process.
The City should ensure adequate, timely civil service tests and lists to speed hiring and encourage more to seek City employment.
The City should implement greater flexibility to move headcount across agencies, within agencies across units, or to allocate vacancies agency-wide to improve the ability to hire priority staff.
Key Data
7,026
— Number of vacant full-time positions eliminated across 42 agencies by the Fiscal Year 2023 Preliminary Budget Program to Eliminate the Gap.
$290 million
— Estimated annual savings resulting from the elimination of 7,026 vacant full-time positions.
18,000
— Number of full-time employees the City could hire even after the Program to Eliminate the Gap.
7.3 percent
— Vacancy rate for full-time positions based on December 2021 on-board staff and the authorized level in November 2021.
246 days
— Median time between exam administration and results for civil service tests in the first four months of fiscal year 2022.
22,376
— Number of positions that could be filled in the current fiscal year following the Program to Eliminate the Gap and other changes to authorized headcount.
New York City's workforce grew by nearly 30,000 employees between 2014 and 2019, while City-funded expenditures are projected to be 34 percent higher in fiscal year 2022 than in 2014. To achieve fiscal sustainability, the incoming administration should implement modest workforce reductions through attrition, negotiate changes to labor contracts, and fund raises through productivity gains rather than increased spending.
Recommendations related to Workforce
The incoming Administration should deploy a regular, periodic Program to Eliminate the Gap (PEG) that identifies and implements recurring savings and continued, modest workforce reduction through attrition.
The associated attrition effort should ensure employees are hired only when there is a proven need for a function and the unit into which the staff is hired already operates efficiently.
Vacant positions should be reduced and redistributed across functions and agencies to provide the capacity needed to hire for high-quality, effective, high-priority services.
The City should bring health and welfare benefit costs to sustainable levels, which requires negotiating changes with municipal labor unions.
City managers and labor should identify and work to change work rules that constrain operations.
Raises should be funded through savings from productivity gains rather than increasing City expenditures.
Key Data
327,110
— The City's workforce reached a peak of 327,110 employees in September 2019.
30,000
— The City's workforce increased by nearly 30,000 employees from fiscal year 2014 to its peak in 2019.
10 percent
— The City's workforce grew by 10 percent from fiscal year 2014 to its peak in 2019.
$7.2 billion
— The City's annual costs for employee and retiree health benefits total nearly $7.2 billion.
4.2 percent
— The City's health and welfare benefit costs have grown an average of 4.2 percent per year since fiscal year 2014.
New York City experienced a rapid loss of 933,000 jobs in just two months at the start of the COVID-19 recession, wiping out 90% of the previous decade's growth. As of September 2021, the recovery remains sluggish, with only 48% of those lost jobs regained.
Key Data
933,000
— jobs lost in just two months at the beginning of the recent recession.
48%
— of lost jobs regained by September 2021.
860,000
— private sector jobs lost in two quarters during the COVID-19 recession.
21%
— of private sector employment lost during the COVID-19 recession.
117,700
— jobs lost in education and health care during the COVID-19 pandemic and recession.
62%
— of job losses were in leisure and hospitality; trade, transportation, and utilities; and other services.
The Metropolitan Transportation Authority faces a significant structural deficit that requires operational reforms, including productivity improvements and changes to labor practices, to achieve long-term fiscal stability. These proposed changes, which include adjusting conductor deployment and health care spending, aim to save nearly $3 billion annually by 2024 while managing the workforce through attrition and collaboration.
Recommendations related to Workforce
The MTA should implement a two-year wage freeze starting next year to help address its structural deficit.
The MTA should increase its subway and bus operations and maintenance productivity to realize significant annual savings.
The MTA should reform how it deploys conductors, including implementing one-person train operation (OPTO) on subways and modernizing fare payment on commuter rail.
The MTA should reduce employee and retiree health care spending by aligning premium sharing with other New York State employees.
The MTA and labor leaders should collaborate on strategies such as retraining, redeployment, and gainsharing to manage the workforce as productivity improvements are implemented.
Key Data
12,838
— Total headcount impact of the proposed operational and maintenance savings.
$1.6 billion
— Potential annual savings from increasing subway and bus operations and maintenance productivity.
$512 million
— Potential annual savings from reforming conductor deployment and modernizing fare payment.
$663 million
— Potential annual savings from reducing employee and retiree health care spending.
6,185
— Headcount impact specifically from subway facility maintenance improvements.
At this time last year, New York State estimated that tax receipts would fall short of pre-pandemic estimates by $15 billion annually on average, totaling $60 billion over four years. Receipts, however, have been much stronger than expected. By April 2021, the State reduced its four-year tax receipt shortfall estimate by 80 percent, to $11.8 billion. Over the four-year period, the State also will receive at least $21.1 billion of targeted and general federal fiscal…
The Fiscal Year 2022 Adopted Budget temporarily reversed hiring and attrition savings, increasing authorized headcount to 337,294, while deferring the necessary reduction of nearly 4,000 staff positions to the next administration. This shift leaves the city with significant staffing increases across most agencies, despite a long-term plan that requires future workforce restraint.
Key Data
337,294
— The authorized headcount for fiscal year 2022, which is nearly the highest ever.
4,000
— The number of on-board staff positions the city plans to reduce for fiscal years 2023 to 2025.
$283 million
— The average annual attrition savings for fiscal years 2023 to 2025.
313,875
— The city's on-board headcount as of March 2021.
23,419
— The capacity to hire full-time and full-time equivalent positions provided by the fiscal year 2022 budget.
$30.4 million
— The amount of attrition savings in the fiscal year 2022 budget following restorations.
New York City's proposed small business support programs risk duplicating existing federal and state efforts, potentially wasting resources that could be better used to fill specific gaps in aid. Instead of creating redundant initiatives, the City should prioritize identifying where current programs fall short and assist businesses in navigating the complex landscape of available federal and state funding.
Recommendations related to Workforce
The City should focus on filling gaps left by federal and State programs, assisting eligible businesses to access programs as needed, and providing additional support for already eligible businesses where the federal and State programs do not provide a reasonable amount of needed support to maximize the impact of economic recovery efforts.
The City should identify potential gaps first by determining which businesses are eligible for which existing programs and whether those programs reasonably meet their needs.
The City should avoid potential redundancies to maximize the value of its efforts as it finalizes programs in budget adoption and determines the details of eligibility during implementation.
The City should consider whether increasing efforts to support small businesses in accessing federal support may be an efficient use of resources.
The City should consider whether to expand technical assistance to State programs when they begin accepting applications.
Key Data
43%
— New York City employment in the accommodation, food service, and entertainment sectors below February 2020 levels as of April 2021.
$813 billion
— Total appropriation for the federal Paycheck Protection Program.
$30 billion
— Total value of 350,500 Paycheck Protection Program loans received by New York City businesses.
$140 million
— Total funding for three proposed small business support programs in the New York City Fiscal Year 2022 Executive Budget.
$800 million
— Total grant fund established by the State's Small Business Recovery Grant Program.
$28.6 billion
— Total funding for the federal Restaurant Revitalization Fund.
New York City allocated $178.6 million in federal COVID-related aid to small business programs and $164.6 million to youth programs between fiscal years 2021 and 2025. These funds also supported specific workforce initiatives, including $13 million for the CUNY Summer Youth Employment Program and $1.27 billion to eliminate labor savings.
Key Data
$1,270.0 Million
— Total funding allocated to eliminate labor savings from fiscal years 2021 to 2025.
$178.6 Million
— Total funding allocated for small business programs from fiscal years 2021 to 2025.
$164.6 Million
— Total funding allocated for youth programs from fiscal years 2021 to 2025.
$13.0 Million
— Total funding allocated for the CUNY Summer Youth Employment Program from fiscal years 2021 to 2025.
$1.5 Million
— Total funding allocated for the Build on Ramps to Green Jobs initiative from fiscal years 2021 to 2025.
$1.5 Million
— Total funding allocated for the Employee Training Apprentice NY initiative from fiscal years 2021 to 2025.
The next New York City Comptroller will play a critical role not only in holding the next Administration and agencies accountable, investing and managing five pension funds with $248 billion in assets, and partnering in $13 billion City debt issuance, but also in spotlighting and promoting New York City’s fiscal…
Managing the City’s fiscal crisis well will be a critically important duty of the next Mayor and a primary determinant of how the city survives the current crisis, and ultimately thrives in the future. Managing NYC’s Fiscal Crisis: A CBC Mayoral Candidate Forum featured a 10-minute conversation with each candidate,…
Early retirement incentives for municipal employees are a less effective cost-saving strategy than natural attrition, as they incur significant additional pension costs and often reward employees who would have retired regardless. While an early retirement incentive could yield $3.3 billion in net savings over five years, relying on attrition could generate $4.3 billion, representing a 32 percent increase in savings.
Recommendations related to Workforce
The City should reduce its workforce through attrition and not pursue the early retirement incentive.
Key Data
$110,000
— Estimated cost per participant over five years for the early retirement incentive.
19%
— Percentage of the City’s savings offset by the cost of the early retirement incentive.
$4.3 billion
— Projected net savings over five years if the City uses attrition to reduce its workforce.
$3.3 billion
— Projected net savings over five years if the City uses an early retirement incentive.
32%
— Percentage by which per-person savings through attrition would be greater than savings through an early retirement incentive.
$1.1 billion
— ERI-increased pension costs that reduce the gross savings of the early retirement incentive.
20,000 is the number of jobs that could be potentially created by proposed rezoning of Industry City, a sprawling retail, office, and manufacturing complex in Sunset Park, Brooklyn. But this week the developer pulled the plug on the proposal after negotiations with stakeholders came to a standstill. What went wrong,…
New York City faces a $1 billion labor savings target to avoid layoffs, which can be achieved by reforming health insurance, consolidating welfare funds, and modernizing work rules. These measures, including adjusting overtime caps and staffing models, would help the city navigate its fiscal crisis while maintaining essential services.
Recommendations related to Workforce
The City should work with the MLC to consolidate welfare funds to leverage economies of scale for prescription drugs and other medical benefits.
The City should seek State legislation to eliminate the VSFs and have the assets transferred to the main pension funds.
The City could reduce overtime for skilled trades and uniformed employees through the implementation of overtime caps.
The City should be given the flexibility to shift at least half of the ALS ambulances to a one paramedic, one EMT staffing model.
The guaranteed return on the fixed return fund should be sharply reduced through State legislation.
The City could make four firefighters the standard staffing for engine companies.
The City should not continue to pay teachers full salary unless they are actively in the classroom providing instruction.
Key Data
$1 billion
— Recurring savings target from negotiations with labor unions in the Adopted Budget for Fiscal Year 2021.
$1.2 billion
— Estimated annual value of the taxpayer-provided guarantee for the tax-deferred annuity (TDA) fund.
$1.1 billion
— Total uniformed overtime spending in fiscal year 2019.
$136 million
— Amount spent by the City on the Absent Teacher Reserve (ATR) in fiscal year 2018.
7.0 percent
— Annual average growth rate of health insurance premium costs from fiscal year 2009 to fiscal year 2019.
$100 million
— Amount earned by employees in skilled trades in overtime in fiscal year 2019.
72% is the share of firms which have experienced challenges in the switch to remote work spurred by the pandemic. The datapoint is from a survey of business leaders representing several key NYC economic sectors. We convened a panel of five CBC Trustees representing real estate, finance, law, health, and…
Watch the original segment here . Budget watchdogs say labor and City Hall should target health care costs first. "The city pays the full premium for employees, retirees and their families. It's a deal that no other New Yorker in the private sector has," said Maria Doulis, vice-president at the…
New York State should implement a comprehensive, transparent performance management system to improve government accountability and service delivery by tracking metrics across all agencies and authorities. Such a system would allow officials to better manage state resources, including the state workforce, and inform budget decisions through data-driven insights.
Recommendations related to Workforce
The State should identify key agency and authority programs and establish output and outcome goals for each program.
The State should identify metrics for each program, including input (such as staffing and resources), process, output, outcome, quality, and efficiency measures.
The State should establish performance targets for each program’s outputs, outcomes, quality, and efficiency.
The State should establish implementation benchmarks for new initiatives.
The State should institute a management and accountability process to review metrics and incorporate findings into ongoing management.
The State should link performance management to the budget cycle to inform budget and policy decisions for elected officials, agency administrators, and staff.
The State should provide public information about agency, authority and program performance that is accessible, readily understood, and provides quantitative measurements of service delivery efficiency, cost, and quality.
The State should establish the performance management system through statutory provisions that promote consistency in reporting across agencies, authorities, and administrations.
Key Data
$34 million
— Estimated savings in workforce costs at State agencies achieved by the Business Services Center in its first four years of operation.
34 percent
— Reduction in infant mortality rates in New York State over the past decade due to maternal care strategies.
1,683
— Number of data files available in the Open Data NY catalog as of April 2020.
244
— Number of data files available when the Open Data NY portal launched in March 2013.
57
— Number of agencies and authorities included in the Division of the Budget's 2018 guidance for strategic planning.
70 million is the number of free meals distributed by the NYC since mid-March, when the COVID-19 pandemic took hold. Today we talk to members of the public and private sector teams that made this success happen: Sanitation Commissioner and "Food Czar" Kathryn Garcia, and Cas Holloway of Unqork, the…
CBC hosted a special panel discussion of prominent fiscal experts who helped New York overcome some of the most dire crises of the past. They provided insights and lessons from past experiences to help us understand and navigate the looming crisis. Stephen Berger Chairman, Odyssey Investment Partners; Former Executive Director,…
New York City municipal employment reached an all-time high of 326,739 at the end of fiscal year 2019, representing an 11.3 percent increase since the fiscal year 2012 trough. Despite looming budget gaps, the current executive budget fails to project a multiyear headcount reduction, necessitating immediate action to shrink the workforce to manage fiscal challenges.
Recommendations related to Workforce
The Administration should act now to shrink the workforce with the least impact on services.
The Adopted Budget should show the decline in headcount that will be needed to manage the next few fiscal years.
Key Data
326,739
— All-time high municipal employment reached at the end of fiscal year 2019.
11.3 percent
— Increase in municipal employment from the fiscal year 2012 trough to the end of fiscal year 2019.
336,120
— Projected authorized headcount through fiscal year 2024.
17,468
— Reduction in full-time and full-time equivalent personnel from fiscal year 2008 to fiscal year 2012.
5.6 percent
— Percentage reduction in personnel from fiscal year 2008 to fiscal year 2012.
$5 billion
— Outyear budget gap projected for fiscal year 2022.
New York City faces a potential $6 billion revenue shortfall in fiscal years 2020 and 2021, necessitating a more aggressive savings plan than the proposed $1.3 billion target. To address this fiscal challenge, the city must prioritize efficiency, consider workforce savings through union negotiations, and potentially implement measures like hiring freezes or layoffs.
Recommendations related to Workforce
The City should work with municipal unions on workforce savings.
The City should potentially enact more far-reaching measures, such as hiring freezes, layoffs, or service cuts.
Agencies should be charged with generating a menu of options for spending reductions that are rooted in improving efficiency, streamlining operations, and supporting more cost-effective operations.
Key Data
$1.3 billion
— Savings target announced for the Executive Budget for Fiscal Year 2021.
$20 billion
— Potential revenue shortfalls over three fiscal years based on prior recessions.
$6 billion
— Estimated revenue shortfall in fiscal years 2020 and 2021.
0.66 percent
— Two-year savings presented in the Executive Budget for Fiscal Year 2020 as a share of city-funded spending.
0.91 percent
— The $1.3 billion savings target announced for the Executive Budget for Fiscal Year 2021 as a share of city-funded spending.
0.23 percent
— Average efficiency savings previously achieved as a share of city-funded spending.
The Metropolitan Transportation Authority's new labor contract with the Transport Workers Union increases compensation by 9.8 percent, adding $16.5 million to the agency's four-year budget gap. While the agreement includes potential savings initiatives, the agency must secure additional workrule changes and establish clear productivity targets to ensure these financial impacts remain neutral.
Recommendations related to Workforce
To keep the financial plan impact neutral, the agreements should include greater savings, including workrule changes, to offset the impact of these increased costs.
The labor-management productivity committees established in the TWU contract should establish productivity targets and provide public quarterly reports on savings to ensure accountability.
The MTA should not miss the opportunity to include workrule changes in other collective bargaining agreements.
Similar committees should be established with other unions if workrule changes are not directly negotiated in the other collective bargaining agreements.
Key Data
9.8 percent
— The compounded wage increases for the TWU contract through 2023.
$1 billion
— The cost of the compounded wage increases through 2023.
$16.5 million
— The net cost added to the MTA's four-year budget gaps by the agreement.
$44 million
— The estimated annual savings the MTA expects to realize from the contract provisions.
$11.7 million
— The additional cost to the financial plan if the MTA negotiates similar agreements with other bargaining units.
$64 million
— The minimum cost of the agreement's non-wage benefits over four years.
In fiscal year 2019, New York City employed approximately 305,700 full-time workers, with two-thirds concentrated in just 20 titles. Average pay for these employees rose to $85,636, though growth rates varied significantly across departments and uniformed titles, with uniformed overtime reaching $1.1 Billion.
Key Data
305,700
— Number of full-time city employees in fiscal year 2019.
$85,636
— Average pay for full-time city employees in fiscal year 2019.
$1.1 Billion
— Total uniformed overtime in fiscal year 2019.
2.3%
— Annual growth rate of positions in the top 20 titles between fiscal years 2014 and 2019.
5%
— Annual pay increase rate for the five most common full-time Department of Education positions.
1.2%
— Annual decline in total average uniformed overtime pay for the four most common uniformed titles between fiscal years 2014 and 2019.
In fiscal year 2019, New York City employed nearly 306,000 full-time workers with an average total pay of $85,636. Uniformed employees earned the highest average annual pay at $106,000, significantly higher than the $73,106 average for civilian employees and $86,002 for pedagogical staff.
Key Data
306,000
— active full-time employees on New York City’s payroll in fiscal year 2019
$85,636
— average total pay for full-time employees in fiscal year 2019
$106,000
— average annual pay for uniformed employees
$73,106
— average annual pay for civilian employees
$86,002
— average annual pay for pedagogical employees
$10,000
— average annual overtime for civilians in several agencies including the Departments of Transportation, Correction, Citywide Administrative Services, and Fire
CBC Vice President Maria Doulis says MTA managers, riders, and drivers will all be making sacrifices through job cuts, fare hikes, and congestion pricing, so it’s only fair labor contributes as well: “The MTA’s demands reflect the fact that more needs to be done with the workforce in order to…
The New York State Legislature introduced 189 bills in 2019 that would expand public employee benefits, including pensions, disability coverage, and leave policies. These proposed legislative changes carry significant fiscal implications, with several individual bills projected to cost millions of dollars in annual contributions and past service liabilities.
Key Data
$942.6 million
— The estimated cost increase for the teachers retirement system, state and local police and fire system, and New York City retirement systems under bill A7413/S5835.
$149 million
— The immediate past service cost associated with increasing Tier 6 pension benefits under bill A7262.
$121.7 million
— The additional annual cost of increasing the salary used in the computation of the special accidental death benefit under bill A4079-B/S3168-B.
$59.3 million
— The annual increase and immediate past service cost for calculating the final average salary for judges and justices under bill A6978.
$41.1 million
— The cost of establishing a 20-year retirement plan for law enforcement members or officers under bill A4431/S5207.
$13.1 million
— The one-time past service cost for modifying the in-service death benefit for Tiers 2 through 6 State correction officers under bill A6598/S2926.
The Metropolitan Transportation Authority faces a dire fiscal outlook with annual cash deficits projected to reach $976 million by 2022, driven largely by labor costs that are expected to surpass $10 billion in 2019. Future collective bargaining agreements should prioritize self-funded raises by incorporating savings from increased employee health insurance contributions and productivity improvements.
Recommendations related to Workforce
The MTA should revise the assumption that all represented workers will receive 2 percent wage increases annually and condition any pay increases on generating offsetting savings.
The MTA should increase employee health care contributions of represented workers to levels similar to the non-represented workforce.
The MTA should apply retiree health benefit contribution shares similar to other State retirees to the number of MTA retirees receiving benefits.
The MTA should pursue changes to member pension contribution rates and benefits for future employees through State legislation.
The MTA should set productivity goals and collaboratively develop an agenda of collective bargaining changes to allow both sides to achieve these goals.
The MTA should implement changes to work rules to make scheduling more flexible, such as reducing penalty payments for bus operators and allowing management to schedule split runs.
Key Data
$976 million
— Projected annual cash deficit for the MTA in 2022.
$10 billion
— Expected labor costs for the MTA in 2019, representing nearly three-fifths of the operating budget.
$400 million
— Estimated savings by 2022 from agreements that condition wage increases on offsetting savings.
$84,955
— Median annual earnings for MTA workers in 2017.
$496 million
— Potential annual savings from increasing subway maintenance productivity to the median for selected U.S. systems.
$444 million
— Potential annual savings from increasing total bus productivity to the median for selected U.S. systems.
The New York State Legislature introduced 67 economic development bills in 2019, many of which focus on tax incentives, job creation credits, and small business support. These legislative proposals aim to stimulate growth through various programs, including workforce training initiatives, tax exemptions for businesses, and targeted grants for specific industries.
Key Data
$140 Million
— Fiscal impact of extending the zero-percent Corporate Franchise Tax rate to qualified pass-through manufacturers.
$30 Million
— Fiscal impact of increasing the Farm Workforce Retention Credit per eligible farm employee.
$275 Million
— Fiscal impact of making real property owned by small businesses with 100 employees or fewer eligible for the STAR property tax exemption.
$100 Million
— Annual cap for the new tax credit for music and video game production industries.
$8.25 Million
— Fiscal impact of the Capital Investment Jobs Retention Program, a refundable tax credit for eligible businesses making significant capital investments and retaining jobs.
$10 Million
— Annual grant authorization for the GrowNY pilot program to provide technical assistance to growing businesses.
The New York City Housing Authority requires significant operational reforms, including the modernization of labor contracts and the expansion of maintenance worker responsibilities, to improve productivity and address repair backlogs. By implementing these changes and leveraging private maintenance contracts, the agency can reduce reliance on overtime and align operating costs more closely with privately managed affordable housing.
Recommendations related to Workforce
The monitor can help NYCHA implement additional reforms to boost productivity without increasing NYCHA’s operating costs.
Opportunities may exist to modify the agreements with NYCHA’s skilled trades to reduce overtime and support additional repair work.
Expanding work responsibilities could allow front line staff to contribute to repairs as part of their day-to-day work.
The monitor should push NYCHA to continue devolving responsibilities to the development level, including requiring property managers to develop project-level budgets.
NYCHA should continue efforts to bring in outside contractors for routine work to speed the pace of maintenance and repair work.
The New York City Housing Authority's NYCHA 2.0 plan aims to stabilize the system by leveraging private funding and maximizing land assets to address critical capital repairs. Success requires elected officials and labor leaders to provide necessary resources, regulatory relief, and adjustments to work rules and salary structures to improve maintenance efficiency.
Recommendations related to Workforce
Labor leaders must work with NYCHA to ease work rules and salary structures to ensure basic repairs and maintenance are performed in a more timely and cost-effective manner.
Elected officials and labor leaders must take additional action to give NYCHA resources and managerial flexibility.
New York City's emergency medical services are currently inefficient, relying on costly and often unnecessary fire engine responses while struggling with staffing models that limit the availability of advanced life support. Restructuring these protocols, including adjusting ambulance staffing and closing redundant fire engine companies, would improve response times for critical incidents and generate significant taxpayer savings.
Recommendations related to Workforce
Follow the lead of other cities to design and implement a program to reduce unnecessary use of EMS.
Enable one paramedic to staff ALS ambulances so that more are available to respond to the most time sensitive, life threatening incidents.
Significantly reduce the role of fire engines in responding to medical incidents and shift resources to Emergency Medical Service.
The City should conduct a thorough assessment of the location, coverage, and workload of fire companies to identify where companies could safely close without jeopardizing response times.
Key Data
$58.5 million
— Estimated annual savings from a 10 percent reduction in unnecessary EMS requests.
$7.2 million
— Annual savings for every fire engine company closed.
$1,970
— Estimated average cost of a fire engine response to a medical incident in 2017.
$486
— Average cost of an ambulance run in 2017.
$85,292
— Maximum base salary for a firefighter in fiscal year 2017.
Watch the original segment here . Progressive, first, best are all terms have been used to describe New York’s economy. One non-partisan watchdog group took a look at how responsible the state has been with its money since Andrew Cuomo took office eight years ago. "See what has actually changed…
7.42% is the compounded salary and wage increases for members of DC37, the City’s largest municipal union for civilian workers, under a new contract that sets the pattern for negotiations with other labor unions. NYC Labor Commissioner Bob Linn joins the podcast to discuss this deal, the dynamics of negotiating…
New York City's Project Labor Agreements, which govern work rules and apprenticeship hiring for major construction projects, require independent evaluation to determine if they have achieved promised savings and workforce goals. With the city's capital commitment plan exceeding $82 billion, it is critical to assess these agreements and other productivity measures to manage rising construction costs.
Recommendations related to Workforce
The City should commission evaluations of the four expiring Project Labor Agreements while there is still time to decide if it is in the City’s interest to amend or renew them.
The Mayor’s Office of Contract Services should identify and evaluate other City efforts to boost construction productivity.
Decisions regarding the renewal or amendment of Project Labor Agreements must be made with transparency and be based on a detailed, independent analysis of performance and experience.
Key Data
$347 million
— Projected savings on $8 billion in construction work from the Project Labor Agreements.
$8 billion
— Total value of construction work covered by the Project Labor Agreements.
$82 billion
— Total value of the current Capital Commitment Plan.
4 to 5 percent
— Average annual rate of construction inflation since the City signed the four Project Labor Agreements.
Numerous legislative bills aimed at expanding public employee benefits, including enhanced death benefits and disability retirement, were vetoed in late 2018. These proposed changes carried significant fiscal implications, with several measures requiring millions of dollars in past service and first-year costs.
Key Data
$13.20
— One-time past service cost for enhancing the in-service death benefit for state correction officers.
$2.42
— Past service and first-year costs for providing accidental disability retirement to law enforcement and forest rangers.
$4.70
— Past service and first-year costs for removing the limit on overtime pay inclusion for Tier 6 New York City Transit Authority employees.
$1.50
— Past service and first-year costs for allowing Tier 6 uniformed court or peace officers to retire without early age reduction after 30 years of service.
The Long Island Rail Road (LIRR) faces significant operational inefficiencies compared to Metro-North, largely driven by higher labor costs, lower productivity, and restrictive work rules that have not been addressed in recent collective bargaining agreements. These labor-related challenges, including higher overtime and legacy costs, result in the LIRR requiring more workers per unit of service and relying more heavily on taxpayer subsidies than its counterpart.
Recommendations related to Workforce
The MTA should standardize work rules across the two railroads to help generate savings.
MTA management should begin identifying its agenda for improved productivity ahead of upcoming collective bargaining.
The MTA should seek commitments to increase productivity in future collective bargaining agreements to address the financial inefficiencies of the commuter railroads.
Key Data
$1,051 million to $925 million
— LIRR labor expenses were 14 percent greater than Metro-North's.
49 percent
— Overtime per position at the LIRR was 49 percent greater than at Metro-North.
0.169
— In 2016, labor productivity at the LIRR was 0.169, 10 percent less than Metro-North's 0.188.
$13 million
— Applying split shifts to the LIRR could save $13 million annually in overtime alone.
3.7 percent
— Labor expenses grew at an average annual rate of 3.7 percent, more than three times the rate of regional inflation over the past five years.
The current Project Labor Agreement for New York City Housing Authority building renovations, which expires in mid-2018, requires an independent evaluation to determine its actual impact on project costs, speed, and quality. This assessment should also verify whether the agreement has successfully provided the projected union apprenticeship opportunities to local residents.
Recommendations related to Workforce
An independent evaluation of the PLA's impact on NYCHA's budget and operations, including speed and quality of work and cost of renovation and rehabilitation projects, should be conducted.
The results of the evaluation of the PLA's impact on NYCHA's budget and operations should be made public.
The evaluation should also examine the extent to which NYCHA residents have participated in BCTC pre-apprenticeship and apprenticeship programs annually since the PLA went into effect in 2015.
Key Data
3 percent
— Projected savings in labor costs expected from the Project Labor Agreement.
100 to 120
— Number of union apprenticeship positions the Building and Construction Trades Council was projected to provide annually for NYCHA residents.
This episode's datapoint is $95 billion, the current value of all of the future retiree benefits, except pensions, already earned by current retirees and employees of NYC. This amount, referred to as OPEB, or 'Other Post-Employment Benefits,' is primarily the cost of health insurance for NYC employees, their spouses and…
Uniformed overtime in New York City has grown significantly, driven by factors like fixed-post staffing, absenteeism, and collective bargaining agreements, creating a substantial fiscal challenge. To address this, the City should establish a labor-management committee to negotiate work policy reforms, such as capping sick leave and overtime earnings, to better control these rising costs.
Recommendations related to Workforce
The City should establish a uniformed labor-management committee as part of the next round of collective bargaining in order to reduce uniformed overtime spending.
The City should adopt a system in which routine sick leave usage is accrued and capped, similar to the system for NYC civilian employees.
The City should change certain work rules, such as eliminating overtime for travel to alternate work locations and guaranteed minimum overtime hours.
The City should institute a per employee cap on overtime hours or overtime earnings, as exists for civilian employees.
The City should cap or eliminate overtime earnings in calculating final average salary for pensions, which would require State legislative approval.
Key Data
$1.7 billion
— Total overtime spending in fiscal year 2016, which is equal to 8 percent of the City's spending on salaries.
$1.2 billion
— Total overtime compensation paid to roughly 63,000 uniformed employees in fiscal year 2016.
$19,400
— Average overtime payment per uniformed employee in fiscal year 2016.
42 percent
— Average amount overtime has exceeded the adopted budget in each of the past nine years.
65 percent
— Portion of overtime in fiscal year 2017 that is scheduled overtime for regular posts at the Department of Correction.
53 percent
— Percentage of uniformed employees who received overtime that exceeded 20 percent of their base pay in fiscal year 2016.
New York City agencies should mandate participation in efficiency programs to address budget risks, as current voluntary efforts have yielded limited results across many departments. By implementing strategies like improved overtime management, staff redeployment, and operational streamlining, the city could significantly increase recurring savings beyond the current program's scope.
Recommendations related to Workforce
City agencies should review their operations to enhance productivity and reduce expenses.
The city should consider reinstating mandatory savings requirements for agencies, as voluntary participation has resulted in limited efficiency gains.
The city should continue to utilize a Centralized Skilled Trades Pool to more nimbly deploy personnel and address maintenance backlogs, reducing the need for overtime.
Agencies should place teachers from the Absent Teacher Reserve into permanent positions to improve efficiency.
Key Data
$378 million
— Potential savings in fiscal year 2018 if all agencies achieved efficiencies worth 1 percent of their city-funded expenditures.
$59 million
— Efficiency savings offered by the Department of Education in fiscal year 2018.
$124 million
— Total savings from 11 identified initiatives by fiscal year 2021.
$40 million
— Four-year total savings projected from the Skilled Trades Overtime initiative.
$28 million
— Four-year total savings projected from the Civilian Overtime Waivers Cap initiative.
$17 million
— Four-year total savings projected from the Redeploy Retirees initiative.
New York City's workforce headcount is projected to grow by over 31,000 employees between fiscal years 2014 and 2018. While the average city worker earned $76,064 in fiscal year 2016, fringe benefits push the total average compensation per employee to over $140,000.
Key Data
31,000
— The projected increase in city headcount from FY 2014 to FY 2018.
$140,000
— The average compensation per employee when including fringe benefit costs.
$76,064
— The average pay for a city worker in FY 2016.
On February 22, 2017, New York State Budget Director Robert Mujica presented highlights from the New York State Executive Budget for Fiscal Year 2018 to the Citizens Budget Commission.
The New York City Department of Small Business Services is proposing to renew a grant program for school bus companies intended to maintain employee wages and benefits for a third year. This program should be discontinued, as these supplementary payments undermine the integrity of the competitive bidding process and have evolved into an entitlement rather than a temporary bridge.
Recommendations related to Workforce
The administration should discontinue the program that provides grants to school bus companies to maintain the wages and benefits of certain employees.
Between fiscal years 2012 and 2017, New York State labor contracts for various public sector unions included a mix of zero-percent increases, specific lump-sum payments, and percentage-based wage adjustments. These negotiated agreements reflect the state's approach to compensation for diverse bargaining units during that period.
Key Data
$2,625
— Wage increase negotiated for PBANYS and NYSPBA in fiscal year 2012.
$2,075
— Wage increase negotiated for NYSCOPBA in fiscal year 2012.
$775
— Lump sum payment negotiated for multiple unions, including CSEA and C-82, in fiscal year 2014.
2%
— Standard wage increase negotiated for most public sector unions in fiscal years 2015 and 2016.
1.50%
— Wage increase negotiated for NYSPIA and NYSPBA in fiscal year 2017.
An interactive map and chart feature provides a visual analysis of employment and wage trends across New York State's regions between 2010 and 2015. This tool allows for the exploration of county-level economic performance data to better understand regional growth patterns.
A Panel Discussion CBC Vice President Maria Doulis presented findings of CBC's Competitiveness Scorecard, which assesses the New York City metro area's competitiveness in attracting talent. The presentation was followed by a panel discussion on ways NYC can improve its competitive edge.
New York State is considering over 60 bills that would enhance benefits for public employees and retirees, potentially costing taxpayers hundreds of millions of dollars annually. These proposals, which include expanded disability payments, increased pension benefits, and enhanced early retirement plans, threaten to undermine previous fiscal reforms and impose significant new financial burdens on state and local governments.
Recommendations related to Workforce
The Legislature should reject the bills detailed in the scorecard because they would impose expensive mandates on New York State and local governments without improving services for taxpayers.
Policymakers should maintain existing reforms that yield significant savings rather than adopting proposals to enhance expensive employee benefits.
Key Data
$21 billion
— Projected savings over 30 years from reforms for New York City police and fire employees that would be rolled back by disability benefit enhancements.
$46 million
— First-year cost of bill A4295, which would allow judges to use their most recent annual salary to calculate pension amounts.
$36 million
— First-year cost of bill S5245, which would enhance in-service death benefits for retirement-eligible State correction officers.
$21 million
— Annual cost of bill A9850/S7232, which would decrease the employee contribution rate under the New York City Transit Authority 25-year/55-age plan.
$16 million
— Annual cost to New York City of bill A6988/S5972, which would expand eligibility for variable supplement fund payments.
$13.9 million
— First-year cost of bill A7801-A/S5936, which would enhance in-service death benefits for State correction officers.
New York City fire engine and ladder companies completed over 1.1 million emergency responses in fiscal year 2015, with medical emergencies and non-fire incidents comprising the vast majority of their workload. While fire responses remain a core duty, they now account for a minority of total runs, as engine companies increasingly address medical calls and ladder companies handle a wide range of non-fire, non-medical emergencies.
Key Data
1.1 million
— Total runs completed by engine and ladder companies in fiscal year 2015.
735,000
— Total runs completed by engine companies in fiscal year 2015.
413,000
— Total runs completed by ladder companies in fiscal year 2015.
34 percent
— Portion of all engine company responses that were medical emergencies.
74 percent
— Portion of all ladder company runs that were non-fire, non-medical incidents.
16 percent
— Average portion of engine company runs that were fire responses.
The FDNY faces a shift in workload where 75% of incidents are medical, yet funding remains heavily skewed toward fire operations at 56% compared to 28% for medical services. To address staffing challenges and improve efficiency, the department should modify ALS ambulance staffing to a mix of one paramedic and one EMT, and require firefighters to obtain EMT certification to handle more medical calls independently.
Recommendations related to Workforce
Modify Advanced Life Support (ALS) ambulance staffing to one paramedic and one emergency medical technician (EMT) for more efficient response.
Increase medical training for firefighters, allowing them to handle more emergencies without reliance on a subsequent ambulance and its staff.
Key Data
81
— Number of daily ambulance tours the city must cover following the bankruptcy of TransCare Ambulance.
75%
— Portion of the FDNY's workload comprised of medical incidents.
5%
— Portion of the FDNY's workload comprised of fire incidents.
56%
— Portion of the FDNY's budget spent on fire operations.
28%
— Portion of the FDNY's budget spent on medical service.
$5 million
— Estimated annual savings from modifying ALS ambulance staffing to one paramedic and one EMT.
Raising the minimum wage to $15 per hour for public sector and contracted social service workers would cost taxpayers hundreds of millions of dollars annually without guaranteeing improved service delivery or productivity. Policymakers must carefully consider the broader financial implications and the potential need to simultaneously increase productivity to justify these significant wage adjustments.
Recommendations related to Workforce
If a sizable increase in the minimum wage is pursued, the city and state should focus on how simultaneously to increase productivity to improve service delivery.
The impact on those employees who make $16 or $18 per hour should also be considered to determine if their wages will rise, too.
The public discussion regarding the compensation of public employees should address what the impact on taxpayers will be and whether the public will get better service in return.
Key Data
10,000
— Number of state workers affected by the governor's pledge to raise the minimum wage to $15 per hour.
$20.3 million
— Annual cost to the state for raising the minimum wage for approximately 10,000 state workers.
$19 million
— Annual cost to the city for instituting a $15 wage standard for New York City municipal workers.
30,000
— Number of workers in contracted social service agencies that could be affected by the $15 wage standard.
$300 million
— Approximate annual cost for wages and fringe benefits for the 30,000 contracted social service workers affected by the $15 standard.
half a billion dollars
— Total annual cost to New York state and city taxpayers when the $15 standard is applied to both public and contracted workers.
The New York City Fire Department currently allocates the majority of its resources to firefighting despite the fact that the vast majority of its emergency responses are for medical incidents. To address this inefficiency, the department should integrate its fire and emergency medical services by increasing medical training for firefighters, adjusting ambulance staffing models, and fundamentally reorganizing its long-term structure.
Recommendations related to Workforce
The FDNY should apply again to the NYC-REMSCO to change ALS ambulance staffing to one paramedic and one EMT, and the change should be approved.
The department should increase the medical training of firefighters so they can handle more situations without reliance on a separate ambulance and its staff.
It may be preferable to require EMT qualifications for new applicants for firefighter jobs, which would also effectively create a career ladder for advancement among the EMS staff.
The department should fundamentally reorganize to redefine the relationships between the two services and rebalance financial and human resources.
Key Data
10,777
— Number of fire personnel in fiscal year 2015.
4,700
— Approximate number of emergency medical technicians (EMTs) and paramedics in fiscal year 2015.
$5 million
— Estimated annual savings from changing ALS ambulance staffing to one paramedic and one EMT.
$1,200
— Estimated cost to subsidize EMT training per firefighter.
1,280 hours
— Training required for a paramedic, including a field internship.
New York State has reduced its executive-controlled workforce by 12,581 positions, or 9.5 percent, between fiscal year 2010 and fiscal year 2016. To further improve agency productivity, the state should pair unit costs with effectiveness measures as part of the NY Performs platform.
Recommendations related to Workforce
The state should pair unit costs with effectiveness measures to improve agency productivity.
The state should overhaul antiquated and byzantine school aid formulas to ensure funding flows according to need and district ability to pay.
Key Data
131,741
— Executive-controlled workforce in FY2010.
119,160
— Projected Executive-controlled workforce in FY2016.
12,581
— Reduction in state agency positions.
9.5 percent
— Percentage reduction in the executive-controlled workforce.
The New York City Health and Hospitals Corporation faces significant fiscal instability, with projected budget gaps reaching $1.7 billion by fiscal year 2018, necessitating aggressive cost-containment and restructuring efforts. To ensure long-term sustainability, the corporation must improve its financial relationship with the City, optimize MetroPlus enrollment, and secure a more equitable distribution of the burden for caring for uninsured residents among all voluntary hospitals.
Recommendations related to Workforce
HHC should intensify its restructuring efforts to realize savings of $400 million by fiscal year 2018.
City leaders should develop more rational and stable guidelines for funding HHC in its efforts to meet its mandates.
HHC leaders can advocate for conditioning available tax exemptions and funding sources on greater participation by all voluntary hospitals in sharing the burden of caring for the uninsured.
HHC needs to continue to grow enrollment and increase returns for MetroPlus.
HHC should implement cost controls and the associated restructuring critical to its financial plan.
Key Data
2,203
— Number of staff HHC reduced between fiscal year 2010 and fiscal year 2014.
37,857
— Full-time equivalent employees at HHC in fiscal year 2014.
17,106
— Number of civilian workers in District Council 37 (DC37) who work for HHC.
$431 Million
— Estimated cost of the 1199SEIU and NYSNA contracts over the course of the fiscal years 2015 to 2018 financial plan.
New York City's municipal garbage collection system is significantly more expensive than private-sector alternatives, with opportunities to save hundreds of millions annually through operational reforms. Key strategies include optimizing route efficiency, expanding automated collection, eliminating unproductive bonuses, and diversifying the snow removal workforce.
Recommendations related to Workforce
Promote flexibility in the frequency of refuse collection, the scheduling of shifts, recycling practices, and the type of street litter basket to meet neighborhood needs.
Redesign routes to increase the average amount of refuse collected per truck-shift from 10 to 12 tons to improve collection efficiency.
Expand the use of one-worker, automated trucks from 8 percent to 18 percent to increase collection efficiency.
Eliminate "unproductive" productivity bonuses for DSNY workers that are based on route assignments rather than actual worker productivity.
Diversify the snow removal workforce to include other public employees, private contractors, and retired DSNY employees to reduce the impact of snow events on year-round staffing decisions.
Key Data
$72 million
— Annual savings if routes were redesigned to increase the average amount of refuse collected per truck-shift from 10 to 12 tons.
$20 million
— Annual savings if DSNY expanded the use of one-worker, automated trucks from 8 percent to 18 percent.
$4 million
— Annual savings from eliminating "unproductive" productivity bonuses.
$220 million
— Annual savings if all DSNY collections were subject to competition.
$57 million
— Estimated annual savings from implementing pay-as-you-throw fees to reduce refuse generation.
$26 million
— Annual savings to the private system from creating franchises for more efficient commercial waste collection.
New York City's municipal workforce is aging, with over one-third of experienced employees eligible for retirement within five years, necessitating a shift in recruitment and compensation strategies. To attract younger talent, the city should modernize civil service rules and introduce more flexible, portable retirement benefits that align with contemporary career expectations.
Recommendations related to Workforce
City leaders need to think boldly about how best to reconfigure the City’s compensation and hiring practices to attract a young and skilled workforce in coming years.
City employees need more flexible retirement options.
A defined contribution retirement plan, which allows for quick vesting and portability of benefits, would be attractive to many younger workers.
City leaders should convene a task force to analyze city operations and staffing.
Updating civil service rules and collective bargaining agreements to reflect modern expectations about work will be necessary to attract young talent.
Key Data
23 percent
— Portion of the City’s municipal workforce over age 55 at the end of fiscal year 2012.
19 percent
— City municipal workers eligible for retirement with full benefits at the end of fiscal year 2012.
15 percent
— Additional portion of the municipal workforce eligible for retirement within five years.
7,500
— Number of city employees who retired in fiscal year 2012.
$65,299
— Median salary of a City employee in fiscal year 2012.
$34,019
— Median salary of the average New Yorker in fiscal year 2012.
This presentation was given during CBC's Conference on The Most Important Economic and Fiscal Decisions Facing the Next Mayor , which took place on December 6, 2013.. CBC provides a framework for curbing expenditures effectively and provides 8 options for savings: Implementing health insurance premium-sharing; Consolidating union welfare funds;…
New York City experienced significant job growth between 2000 and 2012, with a net gain of over 158,000 jobs, though this growth was concentrated in relatively low-wage sectors. To improve future economic development, the city should prioritize infrastructure investments in areas with job growth potential, reform tax expenditure programs for better cost-effectiveness, and enhance transparency in discretionary benefit awards.
Recommendations related to Workforce
Use capital investments to enhance infrastructure in neighborhoods with job growth potential.
Encourage growth in the cultural, medical and educational sectors by enhancing access to capital through conduit financing.
Continue reform of as-of-right tax expenditure programs to make them more cost-effective.
Establish clearer standards for awarding discretionary tax expenditure benefits.
Continue rezoning and expand special mixed use districts to facilitate diversified job growth in areas currently limited to industrial use.
Better manage the Economic Development Corporation by focusing on job creation and enhancing transparency.
Key Data
158,664
— Net gain of jobs in New York City from 2000 to 2012.
339,019
— Local gain of jobs from the trough of the recession in 2003.
374,678
— Total employment change in selected industry sectors from 2000 to 2012.
73,518
— Number of Workforce1 registrants in 2012.
30,900
— Number of people reported as placed in jobs through Workforce1 centers in 2012.
21,146
— Number of Workforce1 registrants in 2002.
This presentation was given by Maria Doulis, CBC’s Director of New York City Studies, at “The Measured City: Using Data to Improve New York City Government” Conference, on Oct. 30, 2013.
Negotiating municipal labor contracts presents a significant fiscal challenge for the city, as all contracts have expired and retroactive pay could cost over $7 billion. Taxpayers must scrutinize how mayoral candidates approach these negotiations, as the resulting financial burden will require either sharp tax increases or significant spending cuts.
Recommendations related to Workforce
Taxpayers should pay attention to how candidates handle their courtship of union members' votes regarding municipal labor contracts.
New Yorkers should take the time to understand the issue of municipal labor contracts because they will be paying the bill.
Mayoral candidates should discuss how they would tackle the challenge of negotiating municipal labor contracts as part of their platform.
Key Data
$72 billion
— Total size of the city's budget, of which personnel costs make up more than half.
$7 billion
— Potential one-time cost of granting retroactive pay for past years.
10 percent
— Portion of the city's operating budget that would be consumed by the one-time cost of retroactive pay.
$3 billion
— Future recurring annual costs if retroactive pay is granted.
New York City's municipal workforce is almost entirely unionized, and with all labor contracts currently expired, the city faces significant financial risks regarding potential retroactive pay. A more holistic approach to compensation, including reforms to health insurance and work rules, is necessary to address the fragmented bargaining framework and avoid substantial budget gaps.
Recommendations related to Workforce
A more holistic approach to compensation should consider reforms to health insurance, salaries, work rules, productivity and cross-agency collaboration.
The next mayor must resolve the expired municipal labor contracts, as taxpayers will bear the costs of potential retroactive pay.
The city should move away from the current fragmented framework that impedes the ability to consider compensation as a whole.
Key Data
$300 million
— The approximate annual increase in operating costs for every 1% raise awarded to the city workforce.
$3.5 billion
— The cost of retroactive pay in fiscal year 2014 if two 4% raises are awarded to teachers and principals.
$3.7 billion
— The cost in fiscal year 2014 if 2% wage increases are provided to the entire workforce.
$7 billion
— The immediate budget gap that would open in fiscal year 2014 if labor settlements are reached.
$30 million
— The cost of a one percent raise to members of the Patrolmen’s Benevolent Association.
$900 million
— The amount by which recurring operating expenses would grow per year if retroactive pay is awarded.
New York City must implement policies to attract and retain a highly skilled workforce to remain competitive in the global information economy. Key strategies include improving infrastructure, supporting specialized education, and fostering affordable environments for both businesses and residents.
Recommendations related to Workforce
The city should support education in fields where the metro area lacks depth to ensure the workforce meets industry needs.
Policymakers should foster affordable workspaces for startups to encourage entrepreneurship and business creation.
The city must improve broadband and Wi-Fi connectivity to support the needs of a modern information economy.
The city should advocate for visa protocols that allow foreign students to work and become residents to retain highly educated talent.
The city needs to improve mass transit to enhance the quality of life and attractiveness for workers.
The city should stimulate housing development to address quality-of-life concerns regarding rent affordability.
Key Data
twice
— The New York metro area has about twice the number of people with master's degrees as the second-largest city, Los Angeles.
New York City must actively pursue policies to expand human capital development, foster emerging industries, and address quality of life issues like long commutes and high housing costs to remain competitive in attracting a highly-skilled workforce. While the city currently dominates in demographics and human capital, it faces stiff competition from regions like Silicon Valley and Washington D.C.
Recommendations related to Workforce
New York City must pursue policies to expand human capital development to maintain its competitive position.
New York City must foster emerging industries to ensure future economic prosperity.
New York City must address weaknesses in quality of life, such as lengthy commutes and high housing costs, to remain a desirable place to live and work.
Key Data
1
— New York City's rank for the number of young and highly educated individuals among the 14 largest domestic metro areas.
14
— New York City's rank for commute times, indicating it has the longest commute times among the 14 largest domestic metro areas.
1
— New York City's rank for the number of educational institutions.
2
— New York City's rank for average annual pay.
12
— New York City's rank for the percent change in the number of highly educated individuals.
3
— New York City's rank for the number of Fortune 500 companies.
The Metropolitan Transportation Authority faces significant financial deficits and should pursue a "net-zero" wage increase for Transport Workers Union employees, as current compensation levels already exceed those of comparable transit systems and private sector workers. To maintain service and avoid further fare hikes, the agency must implement efficiency measures, such as work rule changes and increased employee contributions to health insurance costs.
Recommendations related to Workforce
The MTA should implement a "net-zero" wage increase for the Transport Workers Union to avoid further financial strain on the agency.
The MTA should pursue work rule changes, such as merging the positions of conductor and train operator, to enhance operational efficiency.
The MTA should increase employee contributions toward health insurance premiums to align with the practices of other public and private sector employers.
The MTA should prioritize the accelerated installation of clear bus partitions to improve the safety of transit workers.
The MTA should seek to enhance maternity benefits for employees as part of a broader, efficiency-driven contract settlement.
Key Data
$720 million
— Projected savings from the MTA's "top-to-bottom" efficiency program in 2012.
$42 million
— The cost to the MTA for every one percent wage increase awarded to the Transport Workers Union.
$1.4 billion
— The total amount expected to be raised from fare increases by 2015.
$140,176
— The average annual compensation for New York City Transit heavy rail vehicle operators in 2010.
$92.4 million
— The projected budget gap in 2012 if a wage increase in line with inflation is enacted.
$100,000
— The benefit provided to surviving spouses of workers killed on the job.
New York's public pension systems face significant financial pressure, with costs rising sharply and placing the state at a competitive disadvantage. Implementing the proposed "Tier VI" reforms, which include higher employee contributions, a higher retirement age, and stricter benefit calculations, is necessary to align the state with national norms and ensure long-term fiscal sustainability.
Recommendations related to Workforce
The Legislature should adopt the "Tier VI" pension reform plan in a timely manner.
The Governor should include the "Tier VI" pension reform plan in the Executive Budget.
New York should require new participants in pension funds to contribute 6 percent of their pay during their entire period of employment.
New York should establish a "normal" retirement age of 65 for new workers in state and city pension plans.
New York should eliminate overtime from the final average salary (FAS) calculation for new employees to prevent pension padding.
New York could extend the optional defined contribution plan to other groups of employees to provide more portable retirement benefits.
Key Data
$123 billion
— Total estimated savings over 30 years from the proposed Tier VI pension reforms.
$93 billion
— Estimated savings for New York State and local governments over 30 years from Tier VI changes.
$30 billion
— Estimated savings for New York City pension systems over 30 years from Tier VI changes.
$1.5 billion
— State's required pension payment in fiscal year 2011.
$2.0 billion
— State's projected required pension payment in fiscal year 2014.
$7.0 billion
— New York City's pension payments in fiscal year 2011.
Public-private partnerships for infrastructure projects can raise concerns regarding the job security, wages, and working conditions of current public employees. To address these issues, officials can guarantee displaced workers alternative public sector jobs or negotiate contract terms that ensure compensation and working conditions remain comparable to those of public employees.
Recommendations related to Workforce
Public officials should decide the extent to which they share concerns regarding the job security of current employees.
Public officials can act unilaterally by guaranteeing the hiring of displaced workers in other public sector jobs that become available.
Public officials can negotiate with the private partner to establish contractually compensation or work conditions similar to that provided to public employees.
The Metropolitan Transportation Authority's bus systems rank among the lowest in the nation for labor productivity and operational efficiency, with maintenance productivity performing at less than half the national median. These systems also experience slower average speeds compared to other major cities, with NYCT Bus and MTA Bus operating at 7.7 and 8.6 miles per hour, respectively, against a 10.7 miles per hour median.
Key Data
7.7
— Miles per hour speed for the NYCT Bus system, which is among the lowest of the 10 systems analyzed.
8.6
— Miles per hour speed for the MTA Bus system, which is among the lowest of the 10 systems analyzed.
10.7
— Median speed in miles per hour for all 10 bus systems analyzed.
2.6 million
— Number of passenger trips handled by the Metropolitan Transportation Authority's buses each day.
2.3 million
— Daily passenger trips for the NYCT bus system.
1.1 million
— Daily passenger trips for the MTA Bus Company.
The Metropolitan Transportation Authority faces significant fiscal challenges, prompting the implementation of a "net-zero" wage policy projected to save $220 million by 2014 and the elimination of hundreds of station staff positions. To improve efficiency, the agency is pursuing benchmarking against other large transit systems, focusing on labor productivity and unit cost reductions in bus and commuter rail operations.
Recommendations related to Workforce
The MTA should adopt a "net-zero" wage policy, which would require any wage increases to be offset by productivity gains.
The MTA should conform to practices for direct state government employees with respect to a new pension tier.
The MTA should implement cost sharing for health insurance premiums for its employees.
The MTA should continue efforts to terminate former token booth clerks to improve staffing efficiency.
The MTA should pursue renegotiating vendor contracts to achieve efficiency savings.
Key Data
$32 million
— Projected savings from the "net-zero" wage policy in 2011.
$220 million
— Projected savings from the "net-zero" wage policy in 2014.
570
— Number of station workers the MTA decided to eliminate in March 2009.
26
— Number of station supervisors the MTA decided to eliminate in March 2009.
478
— Number of workers sent notification that their jobs had been eliminated in May 2010.
$935 million
— Total savings in 2014 from all identified efficiency initiatives.
New York's economic development programs, specifically the Empire Zone and Power for Jobs initiatives, have become costly and ineffective, necessitating their replacement with more targeted, performance-based strategies. These new programs should be integrated into a broader economic framework that prioritizes measurable outcomes and aligns with state environmental and conservation goals.
Recommendations related to Workforce
The state should replace the Empire Zone Program and Power for Jobs program without further delay.
The state should replace the Empire Zone Program with the Excelsior program, a new initiative that awards tax credits based on performance.
The Excelsior program should attract firms in high-technology, manufacturing and financial services that agree to add at least 50 jobs in the state.
The new Power for Jobs program should complement, rather than undermine, the state's goals for conservation and increased use of renewable energy.
Legislation for the new Power for Jobs program should include greater provisions for environmental audits to help firms identify areas where they can conserve energy.
Both replacement programs should be fit into a larger economic development strategy that identifies overarching goals and includes metrics for assessing performance.
Key Data
$30 million
— Empire Zone Program costs in 2000.
$600 million
— Empire Zone Program costs in 2009.
$479 million
— Low-end estimate of the annual cost of Power for Jobs programs.
$640 million
— High-end estimate of the annual cost of Power for Jobs programs.
$100 million
— Direct aid provided to rate-payers affected by changes to discount power contracts.
50
— Minimum number of jobs firms must add in the state to qualify for Excelsior program tax credits.
New York's public sector retirement benefits are significantly more generous than those provided by private employers and other public systems, creating a substantial and rapidly growing fiscal burden for taxpayers. To address this, the state and city should transition new employees to defined contribution plans and implement structural reforms to pension and health insurance benefits to align them with broader market standards.
Recommendations related to Workforce
The City and State should seek to place all new workers in defined contribution plans.
The New York systems should require a higher percentage contribution, and not limit it to ten years.
The FAS should be based on five years’ experience and should take into account only base salary, excluding overtime and other supplements subject to manipulation.
The New York system should adopt similar age thresholds, perhaps with a lower minimum (but some minimum) for police officers and firefighters.
These provisions should be revised to set more rigorous standards regarding work-related disabilities.
Eliminate the variable supplements available to some retired New York City uniformed workers, as these payments contradict the principle that pension payments should be a regular and predictable source of income for retirees.
Key Data
$4.7 billion
— Projected City required contributions to pension funds in fiscal year 2008.
$35.16
— Total compensation costs per hour among public employers in 2004.
$23.90
— Total private sector compensation per hour in 2004.
$615 million
— City required contributions to pension funds in fiscal year 2000.
$2.3 billion
— City required contributions to pension funds in fiscal year 2004.
$12,000
— Annual variable supplement payment for some retired NYC uniformed workers in 2007.
New York's economic development programs, which provide discounted power to businesses in exchange for job commitments, are largely ineffective and lack transparency. The state should phase out these programs and reallocate resources toward a more strategic, market-based approach that better supports long-term economic growth.
Recommendations related to Workforce
Phase out current programs by allowing current contracts to expire and passing no new legislation to reauthorize them.
Include assistance for firms with high energy costs as part of a comprehensive economic development strategy administered by Empire State Development.
Sell power no longer used for economic development at market rates to generate additional revenue.
Link energy conservation and economic development goals and programs by requiring firms to submit to energy audits.
Key Data
250,715
— Jobs committed by the Power for Jobs program.
453,914
— Total jobs committed across all nine NYPA economic development programs.
$479 million to $640 million
— Estimated annual cost of NYPA's economic development programs.
1.8 cents to 2.2 cents
— Price paid per kilowatt-hour by program recipients.
6.7 cents
— Market rate per kilowatt-hour for electricity.
$247
— Per-job subsidy for the Power for Jobs program.
New York City's municipal employee benefits are significantly more generous than those offered by large private firms, with the city paying the full cost of health insurance premiums for current employees and retirees. Aligning these benefits with private sector standards could save taxpayers nearly $1.4 billion annually while still allowing the city to attract a qualified workforce.
Recommendations related to Workforce
The City should require from its current workers contributions toward health insurance premiums equal to the amounts paid by employees of local private firms.
The City should require from its retirees contributions toward health insurance premiums equal to the amounts paid by employees of local private firms.
The City should convert to defined contribution plans for its workers to be competitive with the private sector.
Key Data
$1.4 billion
— Annual savings for the City of New York from aligning health insurance benefits with those of local private sector firms.
$628 million
— Annual savings to taxpayers if the City required current workers to contribute toward health insurance premiums equal to the amounts paid by employees of local private firms.
$741 million
— Annual savings to taxpayers if the City required retirees to contribute toward health insurance premiums equal to the amounts paid by employees of local private firms.
$10.4 billion
— Total amount New York City taxpayers will pay for pension and health insurance benefits in the current fiscal year.
$900
— Typical annual contribution from workers for individual health insurance coverage in the private sector.
$3,500
— Typical annual contribution from workers for family health insurance coverage in the private sector.
New York City's upcoming teachers' contract negotiations present a critical opportunity to address a $5 billion budget gap by implementing reforms such as replacing seniority-based pay with merit-based rewards and ending indefinite compensation for teachers who are not actively teaching. These changes, alongside pension and health insurance adjustments, are essential to ensure fiscal responsibility while maintaining a high-quality workforce.
Recommendations related to Workforce
Salary increases should be funded with value-generating concessions.
Pension and health insurance reforms should be implemented to curb rising benefit costs.
Merit pay should replace seniority rewards.
Financial rewards should be used to attract qualified teachers in shortage fields.
Compensation for teachers who are not teaching should end, with payments ceasing after six months.
Unsatisfactory teachers should be terminated quickly by expediting the disciplinary process.
The new contract should include modifications to seniority rules that give principals an enhanced role in deciding the order of layoffs.
Key Data
$655 million
— Annual cost of two 4 percent raises included in the Mayor's budget.
$285 million
— Annual savings achievable by ending seniority-based pay increments after ten years.
$74 million
— Annual cost of maintaining 1,400 teachers in the Absent Teacher Reserve.
$60 million
— Annual cost of paying 640 teachers who are removed from the classroom while awaiting disciplinary hearings.
89,000
— Total number of teachers employed by the City.
$9 billion
— Total annual compensation for teachers in the City budget.
The New York State fiscal year 2009-10 budget failed to secure concessions from public employee unions, leading to planned layoffs of 8,700 employees to reduce the workforce to 190,700. These personnel actions, which were part of a broader failure to implement proposed spending restraints, are expected to save $170 million in the fiscal year.
Recommendations related to Workforce
The state should add a new tier to the public employee pension system with less generous benefits for future hires.
The state should drop the final 3 percent raise granted in the multi-year contracts under which most State employees work.
The state should require an additional sliding scale contribution for retirees for health insurance coverage based on years of service.
The state should reduce the reimbursement for retirees for Medicare Part B premiums.
The state should reduce the size of the State workforce by 3,108 positions by consolidating some agencies.
Key Data
8,700
— Number of employees the Governor plans to layoff beginning in July.
190,700
— Total state workforce size following the planned layoffs.
187,365
— State workforce size during the 2003-04 downturn.
$170 million
— Expected savings from personnel actions in fiscal year 2009-10.
$209 million
— Expected savings from the Governor's rejected workforce and pension proposals.
3,108
— Number of state workforce positions the Governor proposed reducing by consolidating agencies.
New York's local government and school district workforce, totaling 1.5 million people, is supported by pension benefits that are significantly more generous than national norms, including low employee contributions and the inclusion of overtime in benefit calculations. To address these fiscal burdens, policy changes are recommended to align retirement ages and contribution requirements with broader standards, thereby reducing the costs associated with maintaining the public workforce.
Recommendations related to Workforce
Redesign the State-mandated pension benefits for future state and local government workers through changes such as raising the minimum retirement ages, increasing the required employee contributions, eliminating inclusion of overtime in benefit calculations, and eliminating variable supplements for uniformed workers.
Key Data
1.5 million
— Number of people employed by local governments and school districts in New York.
3 percent
— Required employee contribution for two of New York's four worker tiers.
74 percent
— Share of state and local government employees in other systems required to contribute more than 3 percent of their earnings.
6 percent
— Share of full-time state and local government employees nationally who can count overtime in their pension formula.
$12,000
— Annual variable supplement payment per retiree in 2007.
New York State should address its fiscal crisis by reducing the size of its workforce and trimming overly generous public employee benefits that exceed private sector norms. By aligning employee healthcare contributions with other public sector standards and curbing workforce growth, the state can achieve significant annual savings to help close budget gaps.
Recommendations related to Workforce
The Legislature should take all possible actions to reduce the size of the State’s workforce.
The Legislature should require a greater share of health insurance premiums to be paid by current and retired employees, bringing healthcare contributions in line with those of other public sector employees.
For retirees, the Legislature should require a 50 percent contribution to their premium costs and eliminate reimbursement for Medicare Part B premiums.
For current employees, the Legislature should increase contributions to family healthcare plans from 18 percent to 22 percent.
The State should trim overly generous public employee benefits that are more generous than the norm in the private sector.
Key Data
94 percent
— of public pension systems require greater employee contributions than New York's average.
3,000 positions
— the Governor proposes to eliminate through agency consolidations and shared services.
13,000
— higher number of employees in fiscal year 2009-10 compared to the end of fiscal year 2003-04.
$283 million
— annual savings achievable if the size of key agency workforces were brought down to fiscal year 2006-07 levels.
$430 million
— annual savings from requiring retirees to pay a 50 percent contribution to their health insurance premium costs.
$75 million
— annual savings from increasing current employee contributions to family healthcare plans from 18 percent to 22 percent.
Public-private partnerships for infrastructure projects can address labor concerns by incorporating contractual protections for workers, such as requirements for prevailing wages and guarantees of continued employment. These measures ensure that the transition to private management does not negatively impact the existing workforce's compensation or job security.
Recommendations related to Workforce
Public-private partnership contracts should address labor concerns by offering protections to workers for prevailing wages, similar terms of employment, or guaranteeing employment in other city agencies.
New York City's park system has expanded significantly, but management challenges persist regarding the maintenance of facilities and the equitable distribution of resources across neighborhoods. To address these issues, the city should implement strategic planning, improve maintenance productivity, and establish consistent, transparent guidelines for partnerships with nonprofit organizations.
Recommendations related to Workforce
Create a stronger incentive for increasing concessions and other earned revenues by dividing growth in these revenues between the City’s general fund and a new fund dedicated to parks improvements.
Institutionalize responsibility for strategic planning for parks within municipal government.
Bring all parks to an acceptable condition by targeting new resources to the parks with the greatest need.
Improve the quality and productivity in parks maintenance and operations by establishing measures of park use and unit costs.
Encourage preventive maintenance and longer periods of usefulness by funding routine repairs and replacements in the operating budget.
Common principles should guide the relationships between the DPR and its nonprofit partner organizations and the terms of arrangements should be transparent.
Key Data
7,550
— Peak number of WEP workers at the Department of Parks and Recreation in 1998.
3,495
— Number of Parks Opportunity Program (POP) workers hired at the start of the program in March 2001.
8,082
— Total full-time equivalent employees for the Department of Parks and Recreation in fiscal year 2008.
4,677
— Number of staff assigned to borough operations involving parks maintenance and operations in November 2006.
17 to 1
— Staff to supervisor ratio in borough maintenance operations.
New York's public employee retirement benefits are significantly more generous than those offered by private sector employers and other public entities, creating a rapidly growing fiscal burden for the City and State. To ensure long-term fiscal sustainability, the report advocates for shifting new hires to defined contribution plans and reforming existing benefits by increasing employee contributions, raising retirement ages, and tightening eligibility for disability and supplemental payments.
Recommendations related to Workforce
The City and State should convert from defined benefit to defined contribution plans for all new workers.
The City and State should require retirees to pay 50 percent of the premium for health insurance for themselves and their dependents.
The City and State should stop reimbursing retirees for Medicare Part B premiums.
The New York systems should require a higher percentage contribution from employees, and not limit it to ten years.
The New York system should raise the minimum age requirement for retirement to align with federal Social Security thresholds.
Pension benefits should be based on a standard definition of final average salary that excludes overtime and other supplements.
The current system should revise provisions to set more rigorous standards for defining work-related disabilities.
The City should eliminate the variable supplements, or 'Christmas bonuses,' available to some retired New York City uniformed workers.
Key Data
$4.7 billion
— Projected City pension fund contributions in fiscal year 2008.
$6.3 billion
— Combined cost of health insurance for the City and State in 2008.
$35.16
— Total compensation cost per hour among public employers in 2004.
$23.90
— Total compensation cost per hour among private employers in 2004.
$12,000
— Amount of 'Christmas bonus' variable supplements for NYC uniformed workers by 2007.
43%
— Percentage of retired firefighters receiving additional benefits due to a disability deemed to be job related.
New York City's public school system needs to reform teacher compensation and deployment to improve educational outcomes, moving away from seniority-based pay and assignments. By restructuring pay to reward performance and enhancing principals' managerial discretion, the city can better attract and retain effective educators while addressing staffing shortages.
Recommendations related to Workforce
Restructure the pay schedule to make a larger share of compensation conditioned on job performance and to de-emphasize longevity and graduate educational credits.
Use financial incentives to overcome teacher shortages by offering differentials in the range of 20 to 25 percent to qualified teachers in shortage titles who agree to work in schools facing the greatest difficulty.
Increase teacher time spent on classroom instruction by reducing preparation and administrative periods and eliminating sabbatical leaves and subsidized time for union activities.
Enhance principals' managerial discretion by modifying seniority rules to allow principals to select teachers for given posts from among multiple candidates with the most seniority.
Key Data
43 percent
— 43 percent of teacher job titles were deemed in shortage in the 1999-2000 school year.
$9,573
— A teacher can increase her annual salary up to $9,573 by earning graduate credits.
$32,659
— A teacher can increase her annual salary up to $32,659 due to longevity.
4,250
— Reallocating teacher time would have the impact of adding the equivalent of more than 4,250 teachers to the payroll.
13.9
— In the city’s public schools, there are 13.9 pupils for each teacher.
New York's Medicaid cost-containment strategies, including tightening eligibility and reducing provider payment rates, are projected to save $4.6 billion annually. These measures would likely lead to a reduction of approximately 64,000 jobs within the state's healthcare industry.
Recommendations related to Workforce
Careful plans should be made to help affected workers adjust to this change, but the goal should remain getting New York’s health care costs and utilization in line with competitive standards rather than employing people unproductively.
The policy objective to which hospital leaders should adjust is a smaller role for New York hospitals in graduate medical education, rather than continued extra financial support in order to play the bigger educational role.
The State should more vigorously attempt to find creative solutions, either through capitated arrangements with private insurers or through payments directly to physicians to manage the care of those with more complex health care needs.
The State’s medically-needy eligibility rules should be tightened, and spousal refusal should be permitted only under limited circumstances.
New York State should encourage the purchase of private long-term care insurance among those with sufficient means.
Key Data
64,000
— The non-eligibility-related savings would translate into employment reductions of about 64,000 jobs statewide.
5.5 percent
— This would be about a 5.5 percent reduction in employment in the state’s health care industry.
$44,000
— Compensation averages about $44,000 per worker in the health care and social assistance industry.
43,000
— Between 2000 and 2002 health care and social services added nearly 43,000 jobs while total employment in the state fell nearly 200,000.
The City of New York could save approximately $498 million annually by requiring its 80,000 non-managerial civilian employees to work a 40-hour week instead of the current 35-hour week. This shift would allow for a reduction of over 8,000 positions while aligning municipal work schedules with those of other public and private sector employers.
Recommendations related to Workforce
Those civilians not working a 40-hour week should be required to work a 40-hour week.
The shift to a 40-hour week for workers in small job titles should be accompanied by the sharing of work across agencies and combining tasks now limited to narrowly defined job descriptions, known as 'broad-banding.'
For those at smaller locations, the shift to a 40-hour week should be accompanied by relocation to more concentrated offices or dividing time among two or more locations.
Savings might be achieved by curbing the number of holidays, sick days, and vacation days currently provided to municipal employees.
The City could reasonably make proportional reductions in its subsidies to non-City agencies that follow the 40-hour workweek shift to reap additional savings.
Key Data
$498 million
— Estimated annual savings to the City from requiring all non-managerial civilian employees to work a 40-hour week.
8,500
— Number of positions that could be eliminated if all non-managerial civilian employees worked a 40-hour week.
80,000
— Number of non-managerial civilian employees working for the City of New York.
35 hours
— Current workweek for the vast majority of the City's non-managerial civilian employees.
$58,000
— Average savings per worker, including salary, fringe benefits, and space costs, from eliminating a position.
1,556
— Number of different work locations where civilian employees are currently assigned.
New York City's government headcount has reached its highest level in 25 years, while spending continues to outpace inflation. Despite this growth, the city has failed to secure meaningful productivity improvements in recent labor agreements, even dropping a major initiative in exchange for short-term budget relief.
Recommendations related to Workforce
The City should enact significant productivity improvements to deliver more competitive services.
The City should incorporate productivity improvements into its labor agreements instead of dropping them for short-term budget relief.
The City should work to repeal the burdensome Wicks Law to better meet capital needs.
Key Data
25 years
— City headcount has increased to its highest levels in 25 years.
$36 billion
— The five-year capital plan totals $36 billion.
New York State's labor force ranks in the middle tier among competitor states, with its size and quality failing to distinguish the state as a top-tier competitor. While the state maintains a large labor pool, it lags behind national averages in educational attainment growth and scholastic achievement, suggesting little prospect for improvement without significant changes.
Key Data
9.0 million
— The size of the labor force in New York State.
26.8%
— The share of the population over age 25 with a bachelor's or higher degree in New York State.
494
— The mean score for verbal competence on the SAT I in New York State.
506
— The mean score for mathematics competence on the SAT I in New York State.
New York City's municipal workforce negotiations present an opportunity to improve service quality and efficiency by restructuring pay scales, modernizing health insurance, and reforming pension systems. Implementing these changes could generate net savings of $1.4 billion for taxpayers while simultaneously enhancing the economic status and morale of civil servants.
Recommendations related to Workforce
The City should set pay levels in response to labor market conditions, with shortage occupations receiving greater wage increases than those occupations where abundant applicants are available.
The City should change work processes in ways that lower the unit cost of services by sharing savings from productivity initiatives with workers.
The City should shift the emphasis in pay scales from longevity to performance by adding a merit pay component to wages.
The City should modernize the health insurance program for municipal workers and retirees by incorporating premium cost-sharing and price competition.
The City should streamline the administration of welfare fund benefits to achieve economies of scale and improve oversight.
The City should restructure the pension system for newly employed workers to provide a defined contribution rather than a defined benefit.
Key Data
$19.2 billion
— Compensation of workers in fiscal year 2000, representing half of all municipal expenditures.
$1.4 billion
— Net savings to taxpayers in fiscal year 2004 from implementing the recommended labor and benefit reforms.
$150 million
— Cost of well-targeted, one-time catch-up raises for shortage occupations.
$138 million
— Estimated annual savings from five specific productivity initiatives in the Fire Department.
$500 million
— Annual direct savings from requiring 10 percent cost-sharing for individual health coverage and 20 percent for family coverage.
$798 million
— Recurring annual cost of pension enhancements added in 2000 outside of collective bargaining.
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