Tuesday, May 19, 2009

A solution to the WI budget hole

Don Surber had a post on Monday about the disparity between state government workers' pay versus that of private sector workers.
The average state government worker makes $50,350. The average private sector worker makes $43,889. That is a 14% difference.

And don’t get me started on fringe benefits.

The Las Vegas Sun had a story on Sunday comparing what state workers in Nevada compared to what state employees make in other states.

That’s not the question.

How much do they make compared to the people in Nevada who don’t work for the state. That is the pool of workers from which the state of Nevada hires.

State workers there make $54,831 a year.

Private sector workers make $42,825 a year.

State workers in Nevada make 28% more in pay alone. Plus better benefits — more state holidays, more sick leave, earlier retirement, defined benefits retirement — than the people in the private sector.

That makes no sense. These are mainly clerical jobs.

But in state after state, that is the case. Taxpayers make less than their employees.

In California, state workers make $66,928 a year.

Everyone else averages $50,182 a year.

That’s a 33% difference.

Is it any wonder that California state government is running up a $42 billion deficit?

Wow, 33% more than private jobs!

I had to check where Wisconsin stacks up. Darned if we don't make California look like misers.

Our under-compensated state employees make $16,974 more than private sector. And because WI private employees make significantly less than those in California, our discrepancy is 45.4% more being paid to our public servants. Only Iowa is worse.

Doing some simple math, if Wisconsin state employees were only paid the national average of $6,461 more than private workers, our $6+ billion dollar deficit would quickly evaporate.

Here's the list.

Disparity in state versus private employee pay
U.S. average $6,461 14.7%
1 New York ($691) -1.2%
2 Missouri ($322) -0.8%
3 Georgia $700 1.7%
4 Texas $1,443 3.3%
5 Virginia $1,823 4.0%
6 Massachusetts $1,867 3.4%
7 Delaware $2,154 4.7%
8 Tennessee $2,918 7.6%
9 Maryland $3,352 7.0%
10 Wyoming $3,639 9.4%
11 Connecticut $4,108 7.2%
12 West Virginia $4,270 12.7%
13 Florida $4,457 11.3%
14 New Hampshire $4,585 10.6%
15 South Carolina $4,651 13.3%
16 North Carolina $5,269 13.7%
17 Arkansas $5,535 16.6%
18 Louisiana $5,543 14.7%
19 Washington $5,893 12.8%
20 Arizona $5,919 14.4%
21 Nebraska $6,083 17.2%
22 New Mexico $6,135 17.1%
23 Hawaii $6,357 15.7%
24 Kentucky $6,472 18.0%
25 Pennsylvania $6,511 15.4%
26 Mississippi $6,853 21.5%
27 Oklahoma $7,188 20.5%
28 Indiana $7,266 19.7%
29 North Dakota $7,387 22.6%
30 Kansas $7,490 20.4%
31 Alabama $7,822 21.3%
32 Oregon $9,015 23.3%
33 Illinois $9,522 20.3%
34 Alaska $9,526 21.5%
35 Utah $9,962 27.1%
36 New Jersey $10,316 19.5%
37 South Dakota $10,336 33.0%
38 Maine $10,473 30.2%
39 Colorado $10,812 24.1%
40 Nevada $12,006 28.0%
41 Michigan $12,276 28.7%
42 Montana $12,589 39.2%
43 Minnesota $13,153 30.3%
44 Ohio $13,297 33.9%
45 Vermont $13,321 37.0%
46 Idaho $13,593 40.9%
47 Rhode Island $15,469 37.7%
48 California $16,746 33.4%
49 Wisconsin $16,974 45.4%
50 Iowa $23,027 65.8%

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