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February 12, 2011

Our View: State can cut back on managers

The Free Press

As Republican leaders in the Legislature and Gov. Mark Dayton work to hammer out a budget balancing deal that will almost certainly call for cutbacks in state employee pay or numbers, they should not forget about trimming back management ranks as well.

An analysis of state figures by the Minnesota Association of Professional Employees showed the executive branch of Minnesota government had 30 agencies and boards with 1 manager for every 6.7 employees. Between July 2008 and July 2009, 76 managers were added while the state faced a $4.8 billion shortfall. The American Management Association recommends 1 manager for every 20 employees.

It appears the executive branch, mostly at one level below the commissioner level, was top heavy during the Pawlenty administration. We hope Gov. Dayton can take a crack at getting this into line.

The professional employee organization also found various high manager to worker ratios in a number of departments, including the 2009 governor’s office, which had 10 managers and 47 staff, for a ratio of 4.7 employees to each manager.

The professional organization noted that Minnesota Tourism office had 12 manager/supervisors and 54 employees. Department of  Human Services own records showed when it had to cut back in 2009, it cut 3 percent managers, and 7 percent employees.

When it comes to cutting state employment ranks, the governor and Legislature should also think like a business. Sometimes the most valuable people are the ones who are closest to the customers, and those, in most cases, would be the employees.

MAPE estimates that if the executive branch would get its manager/employee ratios to the 15 to 1 ratio nonprofits are required to achieve for state grants, the state could save $100 million.

MAPE and AFSCME, the other major state employee organization, suggest that they have been sharing in the state’s budget sacrifice over the last decade, getting no raises in four of the last eight years.

Both organizations have come up with what they describe as ideas that are “part of the solution.” They suggested the management cutbacks, and that some of their members, particularly the ones who work collecting back taxes, be put to work doing so.

It didn’t get much publicity, but MAPE suggested the state revenue department go after $120 million in uncollected taxes and revenue that agencies were simply writing off. After a push by the revenue department taking a lead from MAPE’s suggestion, some $108 million was collected.

Revenue department managers were quoted saying for every $1 in employee costs, the state collected $5 to $11 dollars. Thinking strategically like this about state employees will be key for Dayton and the Legislature as the look toward cutbacks.

And when there’s going to be certain pain, we have to make sure all positions in the work force feel some of it.

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