A state audit found that millions of dollars are being allocated for vacant positions, many of which have been vacant for several years with no evidence that agencies are trying to fill them.
The legislative Post Audits Committee heard a report about the vacancies on Sunday afternoon during interim meetings.
“This is a really impressive report,” said Delegate Brandon Steele, R-Raleigh, chairman of the House Government Organization Committee. “This is something I’ve talked about for years, needing to work on.”
As of December 2021, there were 4,857 budgeted vacant positions, amounting to 12% of all budgeted positions, reported analysts with the legislative Performance Evaluation and Research Division. That amounted to $226,914,584.
Nearly 500 vacancies have been continuously unfilled for at least four years for a budgeted amount of $22.8 million in annual salaries and benefits.
The Division of Health, and the Division of Corrections and Rehabilitation have the most vacant positions, with more than 800 each. The Division of Human Services had almost 600 vacancies, and the Division of Highways had more than 300.
“Would you say that a lot of the trouble filling them is that it’s a tough job without a lot of pay?” Steele asked analysts.
The answer was yes.
The recommendations by analysts is that the Legislature should consider prohibiting general fund appropriations for positions that have been vacant longer than a certain length of time, such as three or four years.
The State Budget Office objected to some ways the report could be interpreted, citing a “potential misunderstanding that millions of dollars are being appropriated for vacant positions that are not being used properly or could be better used for other purposes.”
The State Budget Office noted that vacancy appropriations are used to pay for items such as contract workers, overtime disbursements and temp employees.
Michael Cook, the State Budget Office director, cited those concerns in his comments before the legislative committee on Sunday.
House Speaker Roger Hanshaw, R-Clay, asked about the overall effect of vacant positions on the budgeting process.
“Is it correct to say that the net effect of carrying over the budget amounts for the non-filled positions is just a real skewing effect on state executive agency budgeting in total” he asked, “that we’re artificially budgeting that doesn’t reflect the reality of how we’re using the dollars or how we’re providing the services?”
Hanshaw later asked Cook, “Are there actually savings to be had by eliminating the vacancies or is the aggregate dollar amount being used elsewhere and it just doesn’t reflect reality?”
Cook responded, “I think the latter,” saying the money is often used for other — but somewhat related — purposes. Examples might include overtime or contract employees.
Hanshaw, near the end of the meeting, said, “in other words, the budget process as we know it just doesn’t reflect reality. Wow. OK, in four years of sitting on this committee, this has to be one of the most informative reports I’ve ever received.”
