PUBLIC PAYROLL SOARS (wealth transfer gone from citizens to people in Govt)

LA Daily News ^ | 3./22/04 | Troy Anderson

[Joe Hadenuf]

(I instructed the Admin Moderator to remove the other thread).

______________________________________________________

Public payroll soars

Salaries move far ahead of inflation

From the city of Los Angeles to California state government, the cost of salaries and benefits for public employees has soared far faster than inflation in the last five years -- three times as fast in the case of the Los Angeles Unified School District, a Daily News analysis has found.

The study showed that spending for public employees' salaries and benefits at the state and local levels increased overall at more than twice the rate of inflation and grew faster than the per capita income of average Californians. The cost of pensions was excluded from the analysis because of the wide disparity between different levels of government.

The spending binge started at a time that tax revenues were soaring, at the peak of the 1990s dot-com boom. Now that the boom has gone bust and the economy remains weak, state and local officials are making deep cuts in public services and looking for ways to raise fees and taxes. The review covered the fiscal years from 1997-98 to 2002-03.

"At all levels of government, the rate of compensation has gone up much more rapidly than it has in the private sector and, most importantly, faster than the personal income of the people who pay for this," said Steven B. Frates, a senior fellow at the Rose Institute of State and Local Government at Claremont McKenna College.

"There has been a wealth transfer. It has gone from the citizens to the people in government".

"You often hear people in government cry that there are going to be cuts and we're hurting the poor and the little children. The fact of the matter is the citizens of the state, county and city are making life better, not necessarily for schoolchildren or people in need, but for government employees."

The review covered the state of California; the city of Los Angeles; Los Angeles County and three neighboring counties; the LAUSD; and the Metropolitan Transportation Authority. Overall salary and benefit expenditures increased between 18 percent at the MTA and 53 percent for San Bernardino County during the five-year period.

The portion for employee benefits alone jumped by 35 to 186 percent.

In comparison, the inflation rate in California rose 17 percent, and per capita income in the state increased 24 percent.

Pension costs varied widely and dropped at some public agencies like Los Angeles city government, which has its own pension fund that profited from the booming stock market, and skyrocketed by as much as 79 percent at other agencies. Many local governments now face huge pension bills largely because of expansion in pension benefits.

Workers' compensation costs rose between 29 and 141 percent, and overtime costs increased by 13 to 60 percent.

In the last five years, per capita income in California increased 24 percent, from $26,521 to $32,898. Nationally, employees in the private sector earn an average of $34,299 a year, plus $13,374 in benefits.

That compares to the $49,005 annual salaries local and state government employees enjoy, plus $21,528 in benefits, according to U.S. Department of Labor statistics.

The highest average salary and benefits package is in Los Angeles County, where compensation jumped from $59,126 to $79,057, although officials point out that many employees went without raises for several years in the mid-1990s.

Local and state government officials said they approved compensation increases for their employees to remain competitive with other government agencies and the private sector, and that some cost increases, such as health care and workers' compensation, were outside of their control.

Some union leaders questioned the figures.

"We represent over 50,000 county employees whose salaries increased 24 percent over 10 years, an average increase of 2.4 percent a year," said Bart Diener, assistant general manager of Service Employees International Union, Local 660, which represents Los Angeles County workers. "We believe this is appropriate and in line with the growth in the economy."

But H.D. Palmer, spokesman for the state Department of Finance under Gov. Arnold Schwarzenegger, said the 41 percent rise in state salary and benefits costs under former Gov. Gray Davis clearly exceeds similar increases in the private sector.

"Looking at that growth in the rearview mirror, it's clear that kind of growth is unsustainable over the long haul," Palmer said. "It's one of the reasons the governor has said he'd like to reopen a number of contracts with state employee unions."

With the state facing a massive shortfall even after voters approved a $15 billion bond issue mainly to refinance existing debt, state and local government agencies now face making steep cuts. Much of the problem was caused by a five-year state spending spree that raised expenditures 43 percent while revenue rose only 25 percent.

Los Angeles County faces making nearly $500 million in cuts, while the city of Los Angeles faces $250 million and the LAUSD $600 million.

County Supervisor Michael D. Antonovich said the biggest portion of the salary increases comes from often unnoticed 2.75 percent and 5.5 percent annual "step" increases, or merit raises, which local and state government workers get during their first five to 11 years of employment.

"And many times employees who reach the fifth step after five years will be reclassified for another five years," Antonovich said. "This is above any cost-of-living adjustments negotiated in labor contracts. That's why those numbers go up so much each year and services are cut.

"So what they need to have is a two-tiered system. Labor laws need to be modified. You could develop a new classification that would allow step increases based upon merit and performance with a smaller increase. So what you would have is something similar to the private sector where promotions are based on merit and performance, not just showing up and having your eyes open."

Jon Coupal, president of the Howard Jarvis Taxpayers Association, said the figures confirm that the only "growth industry" in California is government.

"It's clear that the size of government and the slice it takes from the private sector continues to expand," Coupal said. "And while private sector businesses have suffered, it appears that local and state government believe they are beyond economic pressures."

Coupal said local and state officials should renegotiate contracts with employees unions, consider salary and benefit cuts, work furloughs and layoffs to reduce spending.

But Robert Stern, president of the Center for Governmental Studies, said government employee unions are powerful in California and he's not aware of any agencies cutting salaries and benefits since the Great Depression.

"These are pretty stout increases in both salaries and benefits," said Jack Kyser, chief economist at the Los Angeles County Economic Development Corp. "But the attitude in Sacramento was, 'Look at all this money coming in,' and they spent us into a massive budget deficit."

And, with the state plagued by a structural deficit of up to $10 billion a year, Kyser added: "We are either going to have to increase taxes or make painful cuts in spending. We are not out of the woods yet."

Frates of the Rose Institute said elected leaders bear the blame.

"They gave the farm away," Frates said. "California politicians need to be candid and open about what they are actually spending taxpayer money on.

"They frequently use the shorthand of, 'It's for public safety, education and public health,' when in fact it's for lavish salary and benefit increases for public employees at the expense of the general citizens of California. There are many public safety employees who now make more in retirement than they did when they were working and they get to retire at age 50."

Schwarzenegger is trying to renegotiate contracts. Los Angeles city officials have talked about renegotiations as well and County Chief Administrative Officer David Janssen has proposed a 1 percent salary cut for county employees and furloughs to save about $20 million.

"The question is do we make these necessary adjustments, or do we fire people?" Antonovich asked. "I'd rather make reductions and keep people employed. I believe you will find from workers a willingness to move forward and take reductions to retain their jobs and continue providing services to the public.

"The union leaders have traditionally opposed these reductions and would rather lay off people than have any reductions in compensation. To me, that is cruel and unnecessary. They don't want to jeopardize the benefits they have already gotten." l=8s=8 Troy Anderson, (213) 974-8985 troy.anderson@dailynews.com AT A GLANCE Here are highlights of the changes over the last five years based on figures from state and local governments, comparing fiscal year 1997-98 to fiscal year 2002-03. State:

Spending for salaries and benefits, excluding pensions, was up 41 percent, from $13.3 billion to $18.7 billion.

The number of full-time employees increased 10.5 percent, from 192,377 to 212,563.

The salary for correctional officers increased 25.4 percent, from $65,450 to $82,066 a year. City of Los Angeles (Not counting the departments of water and power, airports and harbor):

Spending for salaries and benefits, excluding pensions, rose 26 percent, from $1.8 billion to $2.2 billion.

The average salary of civilian workers rose 23 percent, from $45,534 to $55,919, while the average for police officers grew 28 percent, from $60,397 to $77,537.

Overtime costs increased by 61 percent, and workers' compensation costs went up 81 percent. Los Angeles schools:

In the Los Angeles Unified School District, expenditures for salaries and benefits rose 51 percent, from $3.6 billion to $5.4 billion.

The average salary and benefits package of an LAUSD employee grew by 27 percent, from $51,424 to $65,526.

The number of full-time employees expanded 18 percent, from 69,140 to 81,691. Los Angeles County:

Expenditures for salaries and benefits rose 39 percent, from $5.0 billion to $6.9 billion.

The average county employee's salary increased 31 percent, from $37,664 to $49,343.

Workers' compensation costs soared 96 percent, from $143.1 million to $281.0 million. Ventura County:

Salaries and benefits rose 22 percent, from $271.5 million to $330.9 million.

Overtime shot up 55 percent, from $1.9 million to $2.9 million.

Workers' compensation costs skyrocketed 141 percent, from $4.5 million to $10.7 million. MTA:

Salaries and benefits increased 18 percent, from $499 million to $589 million.

The number of full-time employees was up by 17.9 percent, from 7,576 to 8,930.

[bc2]

yes, consider the Free State Project... Us young Free Staters will need jobs when we move to New Hampshire! You older folks will have a built-in labor market for your businesses if you move them.

best regards!

[Joe Hadenuf]

Because the stand-alone statement, "The Federal gov't is the largest employer in our nation," is meaningless without any additional information. By how much is it the largest employer? If you eliminate active military personnel from the number, is it still the largest?

The federal, state and local governments employ about 22,000,000 (that's twenty two million) government employees. Now lets subtract from the military, what's that about one or two million?

Anyone that doesn't find these numbers *disturbing*, is either super rich, or is on the government payroll, supported by the bending backs of the tax payers.

[Joe Hadenuf]

The taxpaying public wanted government to do all the things that government does these days.

The tax paying public also voted on things like Cal prop 187. Of course that didn't happen.

Look at it this way: somebody built those beautiful buildings, right? And they got paid for doing so. Right there, you have one element of your big-government constituency. Whenever local, state, or federal government expands, there are several sectors that make out like bandits: architects, general contractors,

Well then Poo, maybe we ought to start hiring more goverment employees, and building more beautiful government facilities, and triple the government employees salaries, benefits, and those already killer pensions? That way, us people in the private sector will benefit even more.

[Poohbah]

The tax paying public also voted on things like Cal prop 187. Of course that didn't happen.

Proposition 187 wouldn't have gotten rid of a single nanny-state program, or fired one government employee.

[Joe Hadenuf]

Prop 187 would have stopped tax paid support of illegal aliens.

Look at it this way: somebody built those beautiful buildings, right? And they got paid for doing so. Right there, you have one element of your big-government constituency. Whenever local, state, or federal government expands, there are several sectors that make out like bandits: architects, general contractors

Well then Poo, maybe we ought to start hiring more goverment employees, and building more beautiful government facilities, and triple the government employees salaries, benefits, and those already killer pensions? That way, us people in the private sector will benefit even more. Is this part of the strategy Poo?

[Poohbah]

Prop 187 would have stopped tax paid support of illegal aliens.

It wouldn't have stopped one dime from going to Americans--and American citizens still get the vast majority of taxpayer-paid largesse, even in California.

How about actually ending the taxpayer-funded largesse across the board?

Or is that too conservative an idea for you?

Well then Poo, maybe we ought to start hiring more goverment employees, and building more beautiful government facilities, and triple the government employees salaries, benefits, and those already killer pensions? That way, us people in the private sector will benefit even more. Is this part of the strategy Poo?

The voters keep calling for more government freebies. The folks they hired to deliver those freebies demanded lots of money to do so. And the voters said "okay."

It's really not that hard to figure out.

[Joe Hadenuf]

Prop 187 would have stopped tax paid support of illegal aliens.

It wouldn't have stopped one dime from going to Americans--and American citizens still get the vast majority of taxpayer-paid largesse, even in California.

Don't you think a good start would have been to stop rewarding and giving away tax money to those that are not even in the country legally? Or is that too conservative an idea for you? It was for the government.

How about actually ending the taxpayer-funded largesse across the board?

Well how about it? But if we can't even stop tax paid money and tax paid benefits going to illegal aliens, how could we ever expect to end these give aways for citizens?

Maybe we ought to start hiring more goverment employees, and building more beautiful government facilities, and triple the government employees salaries, benefits, and those already killer pensions? That way, us people in the private sector will benefit even more. Is this part of the strategy Poo?

The voters keep calling for more government freebies.

Can you quote some of those voter approved pay and benefit increases for government employees from this article?

[newgeezer]

Anyone that doesn't find these numbers *disturbing*, is either super rich, or is on the government payroll, supported by the bending backs of the tax payers

Interestingly, the taxpayers don't seem to give a damn. Withholding and over-withholding (resulting in a "gift" from Uncle Sam on their annual tax returns) keep them clueless and happy.

In the not too distant future, the taxpayers will have no voice in government anyway, as the Dems -- aided and abetted by appeasing Republicans -- march toward their goal of marginalizing taxpayers into a minority, thus ensuring the "soak the rich" party's success at the polls. Short of a revolution, the non-taxpaying masses will control government.

[Joe Hadenuf]

Short of a revolution, the non-taxpaying masses will control government.

They already do. Look at how these career politicians are catering and pandering to illegal aliens. Even the Presidents brother, the Republican Governor of Florida wants to legitimize illegal aliens, and wants to reward them with legitimate driver's licenses. They are filling this country with uneducated, unskilled laborers, that can't even speak the language, and have no desire to.

Now that so-called conservative governors are coming out in support of criminal illegal aliens, it should be clear to all what their real agenda is. The last thing these politicians want is a well informed, educated public while the salaries, benefits, and pensions of the people in government continue to improve.

[newgeezer]

They already do.

Not yet. If the non-taxpaying masses truly had complete control of government, there would be no talk of making the Bush tax cuts permanent.

Then again, perhaps the talk we're hearing is just lip service. So, maybe you're right. ;O)

[Joe Hadenuf]

If the non-taxpaying masses truly had complete control of government, there would be no talk of making the Bush tax cuts permanent.

Tax cuts? LOL! The honest truth is, we hardly even noticed any tax cut and don't even recall what it was spent on. Probably other government taxes, fees, etc....

[newgeezer]

Tax cuts? LOL! The honest truth is, we hardly even noticed any tax cut and don't even recall what it was spent on. Probably other government taxes, fees, etc....

My best friend, who has 8 kids, spent his Child Tax Credit on a new motorcycle.

I think ours simply went into the "general fund." And, thanks to the rate adjustment, my take-home pay is a few bucks more. Granted, it was a pittance -- arguably not worth the mileage the Dems continue to get out of it -- but, it's a cut.

When the non-taxpaying masses under the spell of the Dems gain complete control of government, tax cuts will join such things as wage-and-price-controls and "Whip Inflation Now" on the trash heap of Washington history. The Dems were brilliant to put a sunset clause on the repeal of the death tax. Sunset clauses on tax cuts? Democrats seen as the party of the balanced budget? How ironic. A real sign of the times and a harbinger of things to come.

[The Mayor]

Erie county new yorks largest employer is the government..

The Tax Foundation recently released a report showing that New York State continues to have the highest combined state and local tax burden in the country. According to the report from the non-partisan tax analysis group, New York has held this distinction for 14 years. Contrary to popular perception, New York’s state taxes by themselves are not the highest in the nation - the top honors comes when state taxes are combined with the local burden. While only shocking in a Casablanca way, this information should probably be taken in the context of New York receiving less federal largess than most other states - New Yorkers essentially subsidize federal spending elsewhere. So aside from however you may feel about the state’s multi-leveled governments, budgetary practices, and state and local programs, we also have to make up for what the feds dole out to others.

[Sloth]

Tax payers fund your lunches, too.

[Joe Hadenuf]

Bump that. Good post...

[Joe Hadenuf]

Tax payers fund your lunches, too.

Care to expand on that?

[Joe Hadenuf]

My best friend, who has 8 kids, spent his Child Tax Credit on a new motorcycle.

8 kids and a new motorcycle? Uh...oook.

[Sloth]

If you're going to trace someone's paycheck back to show that the money came from tax revenues, I'm sure a lot of the money you receive comes from tax revenues. I have no clue how you make your living, but it must necessarily depend on money coming directly or indirectly from other people, some of whom are government employees, some of whom are welfare recipients, some of whom benefit from government contracts, some of who got tax refunds, etc.

If you think that there are too many government employees or that they're overpaid, hardly anyone here would disagree. But what they choose to DO with their paycheck is not the taxpayers' business.

[little jeremiah]

I used to live in Oregon. More that half of the total number of employed are government employees. 83% of the state is owned by the federal or state government. It's a shame that such a beautiful state is a socialist hell.

[headsonpikes]

It's really not that hard to figure out.

The difference between Euro-socialism and American socialism is that America makes socialism work!

The American dream - government jobs for everyone!