With overtime and other staffing costs ballooning, a Bay Area city attempts to fix its budget crisis

"One Hayward public safety operator received more in overtime pay last year than their base salary. A Hayward Fire Department battalion chief received nearly a quarter-million dollars in overtime. They're just two examples of how the city of Hayward is wrestling to rein in spending fueled by salaries, benefits and overtime. As Hayward revises its 2025-2026 budget after depleting $31 million in its general fund budget, the city is working to rein in its expenses after a 21% increase in salaries and benefits and a 14% increase in overtime that has caused city officials to return to the negotiation table with the city's labor groups."

""Our public safety departments account for the lion's share of overtime expenses, largely because they account for the lion's share of overall city staffing," Hayward communications manager Chuck Finnie said in a statement to Bay Area News Group. "Our strategy for reducing overtime is to reduce vacancies and identify more efficient ways to meet minimum fire and police department staffing and priority service needs." Along with increased expenses, Hayward's major budget deficit this past year was also fueled by lower-than-estimated revenue for the city - cumulatively resulting in what Finnie calls a "perfect storm." In total, the city spent $248 million in the 2025 fiscal year - more than $21 million over budget for the year and leaving just $1.2 million in its reserves, according to the city."

Hayward depleted $31 million from its general fund and spent $248 million in the 2025 fiscal year, ending with just $1.2 million in reserves. Salaries and benefits rose 21% while overtime increased 14%, with public-safety departments accounting for the largest share of overtime costs. A battalion chief earned nearly a quarter-million dollars in overtime and at least one operator received more overtime than base pay. The current budget would face a $30.6 million deficit unless revised. City measures include a hiring freeze, voluntary pay cuts by leaders, a budget "war room," and labor renegotiations to reduce vacancies and cut overtime.

Read at The Mercury News