January 15, 2010
Where to Cut, and How
State and local governments have been hard hit by the current depression. What
to do?
Cut.
But where?
Well, legislatures could simply repeal all increases and programs starting with
the most recent, going back month by month, year by year to nix spending until
total spending dips below current revenue. Legislatures around the country
should go into sessions of repeal.
Or they could target endemic over-spending. According to a January Cato
Institute Tax and Budget Bulletin, one area of over-spending in need of
tackling is "Employee Compensation in State and Local Governments."
According to the bulletin's author, Chris Edwards, there are several distinct
indicators that demonstrate that government workers are generally overpaid.
Comparisons of compensation between state and local workers and private sector
workers show a 1.45 ratio, with government workers garnering nearly half again
as much as private sector workers.
The percentage of government employees to receive benefit packages over salary
is also significantly higher than private sector laborers.
Further, Edwards notes, "data show that the average quit rate in the state and
local workforce is just one-third the rate in the private sector. This suggests
that state and local pay is higher than needed to attract qualified workers."
So, rational employers -- that is, the citizenry -- would start there, first by
freezing wages and new hires, then by decreasing benefits and reining in
profligate promises in retirement packages.
This is Common Sense. I'm Paul Jacob.
Paul Jacob is President of Citizens in Charge and the Citizens in Charge
Foundation, which sponsors both Common Sense and Paul's weekly Townhall Column.
The opinions expressed in Common Sense are Paul Jacob's and do not necessarily
reflect the opinions of Citizens in Charge or the Citizens in Charge Foundation.
[BC] Paul is a true grass roots activist who has achieved much for the freedom
movement and Libertarian causes with his hard work and wonderful leadership.
[Non-text portions of this message have been removed]
