Augusta Thinks about Outsourcing HR

Automatic Data Processing opened a $40 million Solution Center in Augusta three years ago. The company is now offering to help fix some of the budget problems plaguing the Augusta government. But the fixes will come at a price that includes some city jobs. Commissioners were issued a presentation from the company on Tuesday regarding how outsourcing human resources, benefits and payroll can help save the city money.

City Administrator Fred Russell said that he is going to recommend that the commission vote on signing a contract with the company for their services.

“I’m ready to recommend that we try that,” said Russell. Russell has already had meetings with the company regarding the deal. Last year, the city outsourced its employee benefits management to Automatic Data Processing.

Russell said that a deal with the company would more than likely mean the end of almost all of the city’s human resources jobs. This year, the department requested $1 million from the general fund for salaries and benefits. Russell asked the commission to cut more than $5 million to balance the city budget while also eliminating 34 jobs. This comes at a time when the human resources department has a budget of over $1 million for its salaries in the department.

As of December, the department had 11 employees, down a good amount because its numbers have dwindled lately. The department has not had a permanent director since August, when Rod Powell retired, even though he is still on the payroll as a consultant of the company.

Joe Jackson, one of the more conservative members of the commission, said that he would absolutely vote yes when it comes to outsource the city’s human resources functions as well as the functions of other departments within the city government.

“I would support ADP taking over their role with HR,” Jackson said.

Another major item on the agenda Tuesday night was the method to restore close to $2.5 million in budget cuts along with the outsourcing of the human resource department’s services.

The budget cuts for the city will cause programs at four community centers to end, three swimming pools to close, eliminate 34 positions across 13 departments and reduce the amount of landscaping in downtown Augusta.

The vote to restore the funds failed because only five supporters on the commission voted for it. The idea was to dip into the city’s reserves, which stands at $29 million, while also using $1 million in revenue from Tax Assessor Alvino Ross’ department implements new technologies.

Matt Aitken, one of the commissioners absent from the called meeting, said that he definitely would not vote to restore the funds for the city. “I just can’t see putting a Band-Aid on it,” Aitken said.

Jackson also voted against the measure last week, saying that he did not change his mind.

“I’m not waging this government on speculation,” Jackson said of the anticipated revenue from the tax office. “That dog ain’t going to hunt, and I hope I’ve got support to keep it where it’s at.”