Despite budget shortfall, state government is still hiring

Even a sour economy and a budget shortfall can't put a serious crimp on California state government hiring, according to a Sacramento Bee analysis of payroll databases.

The reasons are as varied as the government's many missions.

The Department of Water Resources is hiring for bond programs approved by voters two years ago.

Health Care Services is employing information technology workers instead of letting contracts to private companies.

The state's pension system, meanwhile, hired customer service workers to handle the growing workload from other state workers ready to retire.

The end result: the number of permanent, full-time state workers grew from 195,000 in January 2007 to 206,000 last month, according to an analysis of payroll databases provided by the state controller's office. The numbers do not include higher education.

It's good news for Sacramento's economy, dependent as it is on public sector jobs. About 37 percent of state workers are based in Sacramento County.

And even though the state is mired in another fiscal mess, officials say they don't have to freeze hiring to comply with Gov. Arnold Schwarzenegger's order to save $100 million by the June 30 end of the fiscal year. They say they're cutting costs in other ways, such as putting the brakes on travel and nonessential contracts.

But not everyone applauds the seemingly inexorable growth of the state payroll.

"At a time when the state is considering cutting back on existing programs, it would be wise to hold off on making any more long-term commitments on salaries, fringe benefits and pensions," said David Kline, spokesman for the California Taxpayers' Association. "Companies are learning to do with fewer people and resources. That is the model government should also follow."

California's robust hiring fits into the national picture. While the number of people employed in the private sector increased 0.4 percent since the beginning of 2007, government jobs went up 1.8 percent, according to the Bureau of Labor Statistics.

The number of permanent, full-time state workers grew by 5.7 percent during that time, The Bee's analysis shows.

The hiring continued even as the state experienced a deepening budget crisis. Schwarzenegger and state legislators are trying to close a $15.2 billion gap in the $101.8 billion general fund.

The overall hiring rate masks variability between departments. Some have curtailed hiring, while others brought on workers at a greater clip than the state average.

Many of the expanding operations explain that their budgets come from sources other than the state's main pot of tax money. New hires that don't tap into the general fund do not contribute to the budget crisis, the reasoning goes.

The Department of Water Resources, for instance, has more than doubled its rate of hiring so far this year, compared with 2007. Its overall payroll has expanded from 2,368 permanent full-time positions to 2,642.

In 2006, voters approved two bonds that provide $5 billion for water management and levee protection.

"That is where the impetus for a lot of these hires has come from," spokesman Ted Thomas said. Many are engineers, who will plan and design the new projects. But general office workers from typists to analysts also must be brought on board, because "you can't increase a program and not increase the support," Thomas said.

The department considers itself a stand-alone enterprise, selling water to users. And the demand for water isn't going anywhere but up.

Other departments explain that they are supported by fees that pay for a certain government function. So the Department of Public Health continues to hire inspectors of nursing homes and hospitals with the fees it collects from those institutions. And the Department of Consumer Affairs brings on staff to keep tabs on automotive repair shops.

"They are our ground troops, so to speak," said Luis Farias, Consumer Affairs spokesman. "They are the ones helping us carry out our mission."

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• Call John Hill, Bee Capitol Bureau, (916) 326-5543.