Question: Could staff prepare a memo describing funding of state employees by department? (Councilman Chapman)

Response: 

City contributions to State positions are primarily due to the higher cost of living in Northern Virginia compared to other areas in Virginia. In some instances, the State funds the positions at a lower salary, and the City provides a supplement to account for the difference between the State salary and the equivalent salary on the City pay scale for each position. In other instances, the City funds the positions based on salaries on the City pay scale, and then receives a reimbursement from the State based on a lower State salary for each specific position. In some departments, the City funds more positions than the State allotment, and the additional positions are 100% locally funded. Nuances for these supplements and reimbursements exist, such as which positions within departments receive City contributions and varying methods of calculating City supplements.

Table 1 lists the departments where State funded positions receive supplements from the City as well as the departments where City funded positions receive State reimbursements.

1-State Funded Positions with City Supplements
This section specifies the positions in the following departments that the State initially funds, and the City then supplements. The combined total cost of the City supplements in the FY 2024 budget is approximately $3.41 million for 167 State positions.

Adult Probation and Public Defender
The City supplements the salaries of State employees to make up the difference between State salary and the equivalent salary on the City’s pay scale. The cost of these supplements in the FY 2024 budget is approximately $304,917 for Adult Probation and Parole and $295,152 for the Public Defender. These two agencies combined have a total of 33 employees which are supplemented.

Court Service Unit
The City supplements the salaries of State employees of the Court Service Unit (CSU) by contributing the difference between the State salary and the equivalent salary of the City pay scale. The cost of these supplements in the FY 2024 budget is approximately $612,639. CSU has 21 state employees who receive two paychecks, one from the State and the other from the City. CSU also has 10 City employees for a total of 31 employees.

General District Court and Juvenile & Domestic Relations Court (JDRC)
The City contributes a 15% matching supplement of State salaries for the General District Court and Juvenile & Domestic Relations Court staff. The cost of supplements in the FY 2024 budget is approximately $115,208 for the 18th General District Court for 14 full-time equivalent (FTE) positions; and $58,622 for the JDRC for seven FTEs.

Health Department
The City supplements the salaries of State, full-time classified, non-grant funded positions. The City contributes to the difference between the State salary and the equivalent salary on the city pay scale. Excluded from supplements are wage employees, the District Health Director, and any staff whose state base salary exceeds the City’s general pay scale for their related City classification. The cost of these supplements in the FY 2024 budget is approximately $2.0 million. In the Health Department, the State pays the employees, and the City makes a quarterly payment to a State account for the supplemented City portion. The department currently has 91 state supplemented employees and 22.25 City FTEs, for a total of 113.25 FTEs.

Magistrate’s Office
The City contributed a 50% matching supplement of magistrates’ State salaries. Due to a change in the State code, Magistrates hired after 7/1/2008 no longer receive the supplement. The Magistrate’s Office has a total of seven employees. Only one is still receiving the matching supplement at a cost of $24,996.

2-City Funded Positions with State Reimbursements
This section details departments in which the City pays the full cost of salaries and benefits based on the City pay scale and the State Compensation Board reimburses a portion of those costs with revenue to the City. Except for the Registrar, reimbursements are based on each position’s salary on the State pay scale.  The City funds the difference between the State salaries and the City pay scale as well as the full cost of salary and benefits for positions that the State does not reimburse.

Constitutional officers are elected officials who are authorized by the Constitution of Virginia to head City departments, such as the Sheriff, Commonwealth's Attorney, the Clerk of the Circuit Court, and the Treasurer. The City receives assistance from the Virginia Compensation Board to help defray part of the cost of office operations for Constitutional Officers. All employees at the constitutional officers are state-supported local employees – not state employees.

Table 2 presents projected reimbursements from the Virginia Compensation Board and State grants in FY 2024, the total FTE personnel cost in departments that are receiving reimbursements, and FTE personnel costs covered through the General Fund and CIP funds dollars for these departments.

*: Numbers are taken from the Compensation Board’s estimated FY 2024 budget, which has not been approved by the General Assembly.
**: OMB FY24 estimates including operating budget and CIP costs but excluding part-time employees and budgeted turnover savings.

Clerk of the Court
In FY 2024, the Alexandria Clerk of Court’s Office will be funded at $1.98 million for 23 FTEs. Of that, the Virginia Compensation Board will provide $1.10 million, and the City will provide $876,366 through the General Fund. The Compensation Board funds 19 positions while the City funds 6 positions (including two temporary over-hires) and supplements the 19 Compensation Board funded positions.

Commonwealth Attorney
For FY 2024, the City Manager’s proposed budget includes funding for 17 attorneys and 20 administrative positions at $4.72 million. The Virginia Compensation Board is projected to provide $1.40 million in reimbursement for 10 attorney positions and 7 administrative positions. In addition, 6 FTEs are 92% grant funded. The City will provide $2.85 million through the General Fund dollars to cover the remaining personnel costs.

Sheriff
For the Sheriff’s Office, the FY 2024 Proposed Budget includes funding for 205 FTEs at $26.40 million. The State is projected to provide $6.55 million as Compensation Board partial reimbursement for 131 sworn and civilian positions, or roughly 36% of the position costs. The City will fully fund 74 sworn and civilian positions and approximately 64% of the remaining positions. $131,499 from the Special Revenues Fund is budgeted towards covering personnel costs. The City will provide $19.72 million through General Fund dollars to cover the remaining personnel costs.

Finance
The Department of Finance has a total of 111 FTEs. In FY 2024, the City is projected to receive a State Compensation Board reimbursement for $597,400 to partially reimburse 34 permanent Treasury function positions in this department. These positions have a total personnel cost of $4.13 million, meaning reimbursement is expected to cover 14.5% of associated personnel costs. An additional $910,110 from the Special Revenues Fund is budgeted towards covering personnel costs associated with the Pension and Accounting divisions. The City will provide $11.71 million through the General Fund and CIP fund dollars to cover the remaining personnel costs.

General Registrar
For the Registrar, the State is authorized to reimburse the City for a base salary (based on population) plus a 15% Competition Pay Supplement, which some Northern Virginia localities (including Alexandria) receive. Because of budget reductions that reduced State support in this area, the City is only able to request a portion of what is authorized for the Registrar in the appropriations act. In FY 2022, this translated into the City being reimbursed by the State for 75.2% of the Registrar’s salary. Additionally, no reimbursement is provided for the employer share of Social Security, employee benefits, administrative costs or for any compensation paid to an Assistant Registrar. The Electoral Board receives a State salary and no City supplement.

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