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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    Good times rolling for government employees


    By leondrolet, Section News
    Posted on Fri Mar 05, 2010 at 09:07:20 AM EST
    Tags: Michigan Taxpayers Alliance, taxes, budget, Granholm (all tags)

    Compensation for Michigan's private sector citizens decreased by 10.3% between 2007 and the third quarter of 2009 - the most recent data available from the federal Bureau of Economic Analysis. Most Michiganders are earning less and struggling to get by.

    But one group is actually becoming richer in Michigan: government employees. State and local government employee compensation increased by 5.5% during the same period, and federal employee compensation is up by 7.5%.

    And the good times will keep rolling for state government bureaucrats who are scheduled to receive a nice 3% pay increase this year unless two-thirds of state lawmakers vote to halt the pay hike.

    Who pays for generous government employee pay increases in these tough times? Remember that Governor Granholm and state lawmakers hiked the state income tax by 12% and the state business tax by 22% back in 2007? Those tax hikes meant more money out of your shrinking paycheck and into the fatter paychecks of Michigan's government class.

    This year, Governor Granholm needs even more money to afford her proposed state budget - which includes the state employee pay increase. So Granholm is pushing a plan that would lower the sales tax from 6% to 5.5% but extend the tax to a whole slew of new purchases currently exempt from the sales tax - things like hair cuts, oil changes, carpet cleaning, yard mowing, pet grooming and thousands of other services. This sales tax extension would take another $550,000,000 out of citizens' pockets in 2011 and transfer that money to Lansing.

    Lawmakers supporting this year's state bureaucrat pay increase argue that state employees "have suffered enough" in recent budgets. But the government's own statistics show the opposite to be true: taxpayers have suffered far more than "enough" while government employee pay and benefit levels keep rising.

    The U.S. Bureau of Labor Statistics documents that government employee benefits cost twice as much as full-time, private sector benefits. What accounts for the difference? Consider the jackpot benefits that many government employees receive:

    *    Public school employees contribute an average of 4.2% to their health care plans while private sector citizens pay an average of 22% of their own health care costs.
    *    Expensive "defined benefit" retirement plans are almost non-existent in the private sector, but are commonplace for public school, public university and local government employees.
    *    Macomb County government employees enjoy a taxpayer-paid retirement benefit that allows many to retire at the age of 50!

    There was a time when government employees enjoyed better benefits and job security than most taxpayers, but were paid less than comparable private sector employees. Not anymore. Statistics from the Bureau of Labor Statistics document that today, the government class enjoys higher salaries, richer benefits and far better job security than the citizens they are supposed to be serving.

    It shouldn't surprise anyone that government employees are much more bullish about the economy than private sector employees. A national poll conducted in December by the survey firm Rasmussen Reports found that 24% of government employees rated the economy as good or excellent while just 9% of those in the private sector were so upbeat.

    The `public servants' have become the masters over taxpayers. And it is costing your family plenty.

    Leon Drolet
    MI Taxpayers Alliance
    www.mitaxpayers.org

    < Chris Christie - Addendum | Left's "Discovery" is a Big "So What?" >


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    Govt employee costs/benefits are too high (none / 0) (#2)
    by jdwalshjr on Fri Mar 05, 2010 at 05:51:46 PM EST
    Business Leaders for Michigan (www.michiganturnaroundplan.com and facebook.com/michiganturnaroundplan) recently put together a plan to rightsize our state government and ensure that critical areas like public safety and schools are funded. Key components are the following:

    • Reduce state employee compensation to the average compensation of state workers in the US or the average of MI private sector workers (Potential savings: $287 - $1,383M as of FY 2007-08)
    • Reduce the state workforce by 5-10% (Potential savings: $236 - $473M as of FY 2007-08)
    • Adjust state employee premium contributions to the national public sector average (Potential savings: $74M)

    Our tax code right is discouraging job growth, especially with the heavy emphasis on business taxes. Furthermore, it doesn't make much sense to tax goods at a high rate when our economy is becoming more and more based on services. That's why the plan calls for expanding the sales tax to services, while reducing the tax from 6 to 5.5 percent.

    The problem is that the governor's proposal is 99% taxes. She doesn't do anything about reforms. She should have followed Business Leaders' lead and and called for slashing the state workforce and rescinding the pay raises.

    The Pledge (none / 0) (#3)
    by LookingforReagan on Fri Mar 05, 2010 at 07:03:54 PM EST
    All candiates for Governor, make that Republican Convservative candidates should take a pledge to do the following.
    1. Freeze state spending and all hiring with the exception of State Police.
    2. Cut the number of state employees by at least 20% immediatly and agree to cut more employees by 5% per year. In the mid-80s this state had a population of nearly eleven million people and was well served by 32,000 state workers. Why do we, with our shrinking population need nearly 60,000 state workers? What pratell do they do?
    We also need immediate tax relief with a new tax code and structure. If the politicians won't do it the people must and will.
    1. Roll back of some of the more repressive regulations enacted by this governor that have surpressed and destroyed our economy. I beleive it was done intentionally.
    2. Agree to privitize our minimum and medium security prisons. The savings to the state would be in excess of $400 million dollars per year.
    It is a start.
    But we the People must demand more. We deserve a government that doesn't waste our tax dollars. By allowing private sector companies to take over many of the state functions cost will go down. In order for the private sector to make money in order to stay in business they have to find ways to do things better and cheaper. In other words they can do what government can't or won't. The time has come.


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