State Workers in the Cross Hairs

The governor’s spending plan includes a $50 million line item for vague state employee “concessions.” It’s simply not a fun time to be a state employee and they’ve already “given at the office” during nearly a decade of budget trouble in Lansing. As the governor noted in her budget plan, a national survey recently claimed Michigan has done more than any other state to restrain general fund budget spending since 2001. Nearly one out of five state employees at the beginning of the decade are now gone. In 2008, Michigan was one of two states to provide no base pay increases to its state employees. And national figures show Michigan government has comparatively low per capita staffing levels compared to other states.

But, given Michigan’s grave economic conditions, further concessions have to be discussed.

Considerations:

  • The proposed $50 million in employee concessions works out to about $1,000 per employee. The hundreds of thousands of displaced manufacturing workers in Michigan would consider that a bargain. So would the tens of thousands of displaced white collar auto workers.
  • When last we worked through the calculation, state worker fringe benefits equaled 54 cents for every dollar of pay. That’s a wealth of benefits few private sector workers in Michigan can claim.
  • State workers receive health care benefits that are much richer than those of their private sector counterparts. At a time when coverage options are shrinking and co-pay costs are increasing for many private sector workers, the cost of the family PPO plan for state employees is $15,000 per year. And, despite the recently doubling of state employee premium co-pays to 10 percent, those public workers shoulder far less of their health care costs than the national average. Nationally, public sector workers pay 22 percent of family premiums and private sector workers pay 28 percent. Michigan taxpayers would save $270 million per year if state employee and state retiree benefit plan premium sharing reflected these national averages, according to a recent Detroit Renaissance/Public Sector Consultants study.
  • This entry was posted in Accountability, Fresh Thoughts, Quality of Place, The Center at Work. Bookmark the permalink. Trackbacks are closed, but you can post a comment.

    4 Comments

    1. State Worker Sam
      Posted February 19, 2009 at 2:35 pm | Permalink

      I think most state workers would give up some things if they were treated like private sector workers: merit-based pay, ability to leap frog poor performing workers, bonuses for work well done.

      The benefits balance out what you don’t get in promotions, raises and bonuses… the bennies are the reward for doing the good work that those who value their jobs in public service perform.

      If you say government should be run like a business, then go all the way – stick AND carrot.

    2. JG
      Posted February 26, 2009 at 2:23 pm | Permalink

      Recent articles on this web page assume that State workers are over compensated. The articles seem to be comparing state worker compensation to the average worker’s compensation in the state. A recent study by the House Fiscal Agency indicates that state workers tend to be more highly educated than the State workforce as a whole and they earn less when adjusting for compensation. State work does tend to offer better benefits, a lower layoff risk, and more regular hours than the private sector, and this is why highly skilled workers will choose to work for the state. Lower the benefits of state workers and increase the layoff risk and the State will not be able to attract skilled workers once the overall economy recovers.

      Many public sector workers are dedicating their lives to making the state a better place to live. While balancing the budget will require public workers to make sacrifices, I wish your articles would stop lumping public employees in with “waste, fraud, and abuse” when evaluating what needs to be cut from the budget.

    3. Yooper Frosty
      Posted March 17, 2009 at 6:35 pm | Permalink

      I am curious about one thing. Aren’t teachers and school staff “state employees”? In my district in the Upper Peninsula, the teachers and staff DO NOT PAY ANY PREMIUMS for the health coverage nor their families coverage. They received a cost of living raise in 2008. My “state employed” husband did not receive a raise but instead started paying more of his health coverage premium, more out of pocket expenses and now they want more concessions. That’s fine……..but let’s not let the “school employee” feel left out this time….eh?

    4. gazbo
      Posted June 25, 2009 at 5:23 pm | Permalink

      State Worker Sam and JG,
      I would encourage you to, suck it up, step up to the plate and take a walk on the wild side. Try starting and operating your own small buisness in this great state of Michigan. I gaurantee you many more hours, real stress and far less appreciation for your college diploma.
      It’s pretty rough out here right now and things are only getting tighter! If small buisness does not get some relief soon there will be even less revenue to the State. The “golden goose” is not looking to chipper. I wish I had the luxury of an increased family contribution for my health insurance. Instead, I was forced to exact the internal budget cut of eliminating all benefits for my remaining employees and my own families as well.
      It’s bare bones in the private sector boys. The State keeps leaning harder and sking for more.
      Get a real job or shut up.

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