Posted on 02/25/2011 6:29:48 AM PST by harpu
How can fringe benefits cost nearly as much as a worker's salary? Answer: collective bargaining.
The showdown in Wisconsin over fringe benefits for public employees boils down to one number: 74.2. That's how many cents the public pays Milwaukee public-school teachers and other employees for retirement and health benefits for every dollar they receive in salary. The corresponding rate for employees of private firms is 24.3 cents.
Gov. Scott Walker's proposal would bring public-employee benefits closer in line with those of workers in the private sector. And to prevent benefits from reaching sky-high levels in the future, he wants to restrict collective-bargaining rights.
The average Milwaukee public-school teacher salary is $56,500, but with benefits the total package is $100,005, according to the manager of financial planning for Milwaukee public schools. When I showed these figures to a friend, she asked me a simple question: "How can fringe benefits be nearly as much as salary?" The answers can be found by unpacking the numbers in the district's budget for this fiscal year in...
•Social Security and Medicare.
•State Pension.
•Teachers' Supplemental Pension.
•Classified Pension.
•Health care for current employees.
•Health insurance for retirees.
Overall, the school district's contributions to health insurance for employees and retirees total about 50.9 cents on top of every dollar paid in wages. Together with pension and Social Security contributions, plus a few small items, one can see how the total cost of fringe benefits reaches 74.2%.
As the costs of pensions and insurance escalate, the governor's proposal to restrict collective bargaining to salaries—not benefits—seems entirely reasonable.
You are correct. At 50 cents of every dollar in salary going to HC, it also shows that someone does not know how to shop around for a good deal on HC insurance. The number equates to $28K per employee for HC, and this is extremely high. I wonder who's pockets were lined with that overpayment.
Also state worker pay is 60% of the WI state budget, leaving a mere 40% for the rest of the state taxpayers. Worse, every year, these same teachers’ unions come back for more, forcing raising local property taxes in each school district.
Remeber, the annual salary is for 8-9 months of work.
Remember, the annual salary is for 8-9 months of work.
Wisconsin Education Association Insurance Corp. (WEAIC),
The industrial, textile labor unions,etc. caused millions of Americans to lose their jobs. Industry after industry was destroyed by greedy and criminal labor unions. The public service unions are even worse, they are destroying not only their states, but the education of your children. Americans, you best wise-up and get rid of these labor union parasites and their Democrat lock-steppers, including socialist/communist POTUS Barack Hussein Obama.
That's exactly what the UNION Bosses are afraid will come to light. Their 'sweetheart, kickback deals' with the HC providers.
See my link above. The Union IS the Healthcare provider for most districts.
The whole idea of not just getting paid, but cared for - sometimes long after no longer working, infantilizes the populace and corrupts the executive or politician negotiating compensation.
If you read this, your hair will be on fire, kiddo...
http://www.publicschoolspending.com/wp-content/uploads/2010/11/WEA-Trust-final-report.pdf
Now that the tax payers have woke, I doubt this will stand much longer! he, he!
If the average TEACHERS salary is $56,000 how much is the average ADMINISTRATORS salary?
Lies, Damed Lies, and Statistics.
80% of the school districts are required to use only ONE provider ... WEC Trust. Follow the dollars ... How did ONE provider get 80% of the business. How did such a non-competive system come about. Who owns WEC?
Thanks, and thanks for the warning. (Do you have a fire extinguisher?)
And don’t forget, additional expenses in the form of matching social security payments, unemployment insurance, etc. would raise this total considerably!
Years ago, as an employer paying $6.00 per hour with absolutely no benefits or perks, my costs to employ someone ran up to $10 per hour!
And don’t forget, additional expenses in the form of matching social security payments, unemployment insurance, etc. would raise this total considerably!
Years ago, as an employer paying $6.00 per hour with absolutely no benefits or perks, my costs to employ someone ran up to $10 per hour!
Most of them likely don't care as long as they get theirs. You hear a lot of people on their side making statements such as “salaries and benefits got where they did because it's what the market can bear”
In a different setting (such as a baseball player earning a salary) I would be more willing to buy that… however in this case, there is no “market” that will bear what they are being paid. That's all taken out of the equation by the collective bargaining agreements…
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