3.30.2010

Easy Cuts

In this time of budget trouble in states across the nation, in which massive deficits are common but balanced-budget requirements prevent states from kicking the can down the road like the feds do, it is becoming clear that state government employee salaries and benefits are part of the problem. From the WSJ via Power Line:
In a separate survey, the federal Bureau of Economic Analysis compares the compensation of public versus private workers in each of the 50 states. Perhaps not coincidentally, the pay gap is widest in states that have the biggest budget deficits, such as New Jersey, Nevada and Hawaii. Of the 40 states that have a budget deficit so far this year, 28 would have a balanced budget were it not for the windfall to government workers.
There was also this tidbit from the governor of New Jersey:
One state retiree, 49 years old, paid, over the course of his entire career, a total of $124,000 towards his retirement pension and health benefits. What will we pay him? $3.3 million in pension payments over his life and nearly $500,000 for health care benefits -- a total of $3.8m on a $120,000 investment.
The governor of Missouri is trying to make some common-sense moves to remedy this situation. For one, he wants to reduce the number of holidays for state employees from 13 to 10. Seems pretty fair, since this article states that the average private sector worker only gets 8 holidays. But, as can be expected, there's resistance to even this measure, which is projected to save $3 million per year:
Cutting employees' benefits "will worsen already high turnover rates and work against the quality care and services they are expected to provide," said a statement from the American Federation of State, County and Municipal Employees Council 72, which represents employees in the departments of mental health and public safety...

"We understand the financial crisis," [Gary Gross] said "But we also don't think they're looking at all the right options. There are many other things that could be cut rather than trying to take benefits away from state employees."
This is why cutting spending is so hard, when people fight against ideas like this that should cause little controversy. It sounds like most Missouri legislators realize this is a fairly painless cut, though.

I'd like to address this idea that this move will increase state employee turnover. Are state employees going to say, "I refuse to give up those holidays. I'm going to find a different job that gives me my 13 holidays?" Probably not, since we know that nowhere else do employees get all those days off. Second, times are not good right now, so I don't think too many people are going to quit their jobs in the near future, especially over something rather trivial.

If you are going to try to argue against common sense budget cuts, at least you should use reasoning that is not absurd on its face.

1 comment :

  1. Since I am no longer working as a state employee, I can agree with this :-)

    ReplyDelete