The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Wednesday, July 26, 1995               TAG: 9507260420
SECTION: LOCAL                    PAGE: B7   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: RICHMOND                           LENGTH: Medium:   56 lines

AUDITOR SAYS STATE AGENCIES FLOUT WORK RULES

Because the number of full-time state employees is limited, agencies have hired temporary employees and, in some instances, violated a limit on the number of hours such employees can work annually, a state auditor said.

Walter J. Kucharski, state auditor of public accounts, on Monday told a House of Delegates budget committee that in some cases the state would save money by hiring full-time workers with benefits instead of the temporary help.

He recommended the General Assembly consider revising the rule limiting temporary wage or contract workers to 1,500 hours per year. The 1,500-hour ceiling averages just less than 29 hours a week for a year.

``It's not a new problem,'' Kucharski said, pointing out that his investigation covered about half the term of Democratic Gov. L. Douglas Wilder as well as the current administration of Republican Gov. George Allen.

``Beginning in fiscal year 1992 and continuing through the current fiscal year, our audits have disclosed a growing trend of agency circumvention or noncompliance with the 1,500-hour limitation,'' he said.

Many state agencies, which by law may employ only a specified level of full-time classified employees, supplement their work forces by hiring wage or contract employees.

In some cases, agencies have paid more for the temporary or contract work, he said, than the cost of an additional full-time employee who enjoys full benefits.

In fiscal 1994, state agencies paid almost 37,000 wage or part-time employees for an average of 452 hours worked. Most are seasonal employees, Kucharski said. For example, the Department of Taxation hires extra help to process returns.

Many agencies comply with the letter, if not the spirit, of the limit, Kucharski said.

Some refer ``wage employees nearing the (limit) to temporary employment firms, then rehire the same individuals through the employment firm,'' he said. ``After the employee's anniversary date, many are rehired by the agencies as wage employees.''

Two years ago, the Department of Personnel and Training expressed its disapproval of the practice, Kucharski said, but ``has not made further attempts to stop agencies from using this procedure.''

Notwithstanding the evasions, the practices frequently help the agencies and Virginians as well as save money.

But if the wage employees are terminated and replaced after reaching the 1,500-hour limit, ``agencies lose continuity and efficiency, since new employees require training and orientation,'' he said.

KEYWORDS: TEMPORARY WORKERS by CNB