OTA Dispatch Issue 4, 2022

9 www.ortrucking.org Issue 4 | 2022 originally was about 2/3 of the auditors were WMT specialists and 1/3 were IRP/ IFTA specialists. Looking at recent (2019) org charts for both the audit offices in Salem, Umatilla, Springfield, and Portland, these charts reflect 32 auditors and two managers. Very simplistically, you could apply the 2/3–1/3 ratio and conclude that that 20 auditor FTE and one Manager FTE could be reduced by eliminating weight mile tax and substituting a fuels tax like what is done in all 49 other states. Unlike for weight mile tax auditors who must be regionally distributed to perform their audits, the IFTA/IRP audits could all be reasonably done in the Salem central office. The leased Portland office space could be eliminated. The Springfield leased office space could be eliminated. The Umatilla audit staff work out of the Port of Entry in an ODOT owned building. In addition to salary savings for 21 reduced FTE, there would also be the associated savings in OPE—other payroll expenses. All employing units must pay Other Payroll Expenses (OPE). OPE is the cost to the department of an employee in addition to the gross pay. OPE is charged proportionately to each index an employee is paid from. OPE costs can include any of the following items: ` Health Insurance ` Medicare ` Retirements ` State Accident Insurance Fund ` Social Security ` Mass Transit Taxing Districts ` Unemployment Insurance ` Workers’ Compensation Also, other indirect costs need to be included in the calculation of savings resulting from workforce reduction. Indirect labor cost is the cost of labor that is not directly related to the production of goods and the performance of services. It refers to the wages paid to workers whose duties enable others to produce goods and perform services. Unlike direct labor cost, indirect labor costs are not so readily associated with specific units. Employees that make up this group include managerial and administrative staff such as supervisors, accountants, and in the instance ODOT and a weight mile tax they would include some percentage of the cost of motor carrier enforcement officers and also some percentage of the cost of registration staff as well as the Bond/Insurance Unit, Carrier Maintenance Unit, Tax Help Unit, and Support Services. For the less obvious connection to motor carrier enforcement officers (MCEO) you need to understand that there are more MCEO staff employed than would be necessary to simply manage a size and weight