According to the most recent state figures, there are about 13,000 state employees of the 31,000 employees in executive branch agencies who because of an arbitrated union contract, may work remotely as many as four days a week.
That hybrid staffing configuration, combined with a desire to get some buildings onto the private market, is prompting Department of Administrative Services Commissioner Michelle Halloran Gilman and Jeffrey Beckham, who as secretary of the Office of Policy and Management is Gov. Ned Lamont's budget chief, to explore the potential marketing of government-owned buildings.
"Certainly around telework, our footprint has changed, but we constantly look at the real estate market and identify opportunities for building consolidation or where we may need newer and better-designed space for operational needs for agencies across the executive branch," Gilman told the State Bond Commission on Friday.
According to a 2022 inventory of state property, there are more than 3,800 facilities, from major office buildings to small sheds, owned by the state, plus hundreds of leased locations.
The historic former Phoenix Insurance building on Elm Street across from Bushnell Park that for decades housed the offices of the attorney general and the state treasurer, was purchased for about $7 million in 2020 and is being converted to housing, after last year's move of both offices to the renovated State Office Building near the State Capitol. "That's under contract," Beckham said. "There is a purchase and sale agreement. I believe there is some market-rate and some affordable housing that's contemplated at the site of that contract."
The State Bond Commission approved $1.5 million in an initial move toward reviewing the state's property holdings and shuffling around some offices "whether it's leased or owned space and acknowledging the workforce needs that we have, whether we have new agencies, expanded workforce, what those needs may be," Gilman said.
"This is seed money to begin looking at that analysis and evaluation of our state properties," Gilman said."Really looking at 450 Columbus Blvd. opportunities there, but also other properties that we own across the state executive branch, whether that's DAS properties or others, but this initial study is going to be focused at 450 Columbus and opportunities to acquire and identify other properties that we might want to look at consolidation around."
The executive branch includes major state departments run by Lamont's office, including the Department of Energy and Environmental protection, the Department of Transportation, Department of Motor Vehicles, Department of Consumer Protection and DAS, but does not include state workers in the judicial branch, higher education, the legislative branch and constitutional offices such as the attorney general, comptroller and treasurer. In all, there are about 50,000 state employees with thousands of openings following 2022's retirement surge.
After the bond commission session, when Lamont met with reporters, Gilman was asked whether the state has a glut of office space because of the telecommuting. "We're always evaluating that process in our real estate footprint with the Office of Policy and Management and our other partners," Gilman said, stressing that the current goal is to develop that study around property holdings and staffing needs.
"What makes sense for our call centers, our customer service centers?" Gilman said. "What is the most efficient and economical property to both own and lease? We're constantly reviewing that and assessing that. Certainly we have employees in and out throughout the course of the week. In many cases we have employees in five days a week. Other agencies, it's a lesser amount. So it's hard to determine, based on agency need, what those numbers look like, but as part of the study we are evaluating what that vacancy rate may look like. Also, really around older properties and where we do not want to invest funding and dollars in rehabbing those older facilities for energy efficiency, the footprint, and how that works for our workforce."
The $1.5 million allocation includes equipment replacements for several state buildings in Waterbury and Hartford, plus a million dollars for the consolidation study for 450 Columbus Blvd., which houses the Department of Consumer Protection and the Department of Revenue Services. "We do not have a vacancy problem there, but we do think there is an opportunity to add in additional employees to that footprint," Gilman said. "It is a large property and we think that we can maximize additional utilization at that property, so that's really what this study will do. It will also look at potentially other properties that the state owns or leases and look at where we can maximize those facilities as well."
The budget that took effect on July 1 included a House Republican proposal to save as much as $200 million by holding off on filling many of the estimated 3,500 vacancies in state departments and agencies.
Gilman said that it is the responsibility of each state agency head to evaluate the needs of state residents for their particular services "and to understand where there may be gaps and opportunities to provide enhanced service." She stressed that in recent years, there have been more online services available for around-the-clock use.
"Many of our residents want digital services from their couch rather than calling someone or being in an office from 9 to 5," she said. "So enhancing our digital service delivery, which we have done under the governor's leadership, is only one component of that service delivery."
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