PRIVATE EMPLOYERS CAN NOT COMPETE WITH PUBLIC EMPLOYEE GROUPS WHO ARE HIGHLY OVERPAID AND LACK PRODUCTIVITY

Pay Excesses

* Federal civilian wages averaged $79,197 in 2008, more than 50% greater than that of the average private sector employee’s wages of $49,935.
* Pay in the public sector climbed 53.7% from 2000 to 2008 for federal civilian workers while wages in the private sector rose just 28.5% over the same time period.
* The U.S. government issued employee bonuses of some $370 million last year.
* The average state and local government employee earns 29% more than the average private sector employee.
* More than 40% of city employees In Vallejo, California, had salaries greater than $100,000 in 2008. In May 2008, Vallejo filed for bankruptcy.
* Taxpayers support some hefty teacher salaries in Illinois. For example:
o a physical education teacher earning $163,000 (more than 400 earn in excess of $100,000)
o an English teachers earning $164,000 (more than 300 earn in excess of $100,000)
o a driver education teacher earning $170,000 (94 earn in excess of $100,000)
* In New York, state agency workers collected more than $459 million in overtime, with one aide clocking in 2,455 extra hours, nearly tripling her base salary from $38,500 to $110,841.

Benefits Disparity

* When wages and benefits are combined, federal civilian workers averaged $119,982 in 2008, twice the amount of $59,909 which workers in the private sector averaged for wages/benefits.
* The value of benefits for federal civilian workers averaged $40,000/year, four times the value of benefits that the average private sector employee receives.
* Only 12%of retirees from the private sector have defined benefit pensions to supplement Social Security. Their average annual pension is $13,083, and they are not eligible for full Social Security benefits until their late 60s.
* BUT…. The majority of public sector workers have pension plans that allow them to retire 10-25 years earlier with benefits many times the retirement payout that Social Security would provide.
* In San Jose, California, 256 retired officers and firefighters and 34 other city workers collect $100,000+ pensions, and all city retirees get free healthcare.
* Florida taxpayers foot the bill for $1.44 billion in the past year toward healthcare coverage for state employees who also enjoy perks like free college classes and financial consulting.

Double-Dipping/Spiking/Pension Abuse

* More than 4,000 state employees are double-dipping in Arizona.
* In Florida, a police commander in Delray Beach retired at age 42 earning $90,000 a year. He now collects a pension of $65,000 and earns a salary from his new job at a nearby beach.
* There are at least 9,000 public employees and 200 elected officials double dipping in Florida.
o A Miami-Dade community college president got a lump sum of $893,286 and earns $441,538 annually, in addition to his $14,631/month pension.
o An Indian River State College president got a lump sum of $585,000 and earns $286,470 annually, in addition to his $9,823/month pension.
o A Northwest Florida State College president got a lump sum of $553,228 and earns $228,000 annually, in addition to his $8,803/month pension.
* In Connecticut, there were 29 retirees collecting a six-figure pension and still collecting a paycheck as of 2008.
* In San Francisco, California, the prevalence of “spiking”, or boosting pension benefits via final work year promotions, has resulted in over half of the police and firefighters in the past decade earning pensions in excess of the wages they earned while actively working.
* In Arkansas, there are at least 144 employees on the state payroll who have retired and returned to the same job after less than two months since June 2001.
* Public school teachers in New York are able to retire at 55 with pensions sometimes larger than their annual salaries by cashing in unused sick and vacation time. Nearly 700 former NY teachers and administrators receive pensions over $100,000.
* The highest paid city official in California was earning more than $500,000 as a city administrator when he was arrested. He was charged with embezzlement of city funds. Still, he continued earning a $500,000/year pension, even as he waited for his trial.
* Several New York state employees are collecting pensions despite being convicted of crimes. Some examples include:
o A Buffalo detective convicted of stealing from suspected drug dealers and sentenced to 30 months is collecting a $54,751 pension.
o A state comptroller convicted of defrauding the government and indicted in a kick-back scheme involving state pension investments is still collecting a $166,467 pension.
o A teacher convicted of sexually abusing members of the Boy Scout troop he led and sentenced to 50 years is still collecting a $52,073 pension.
o A detective convicted of orchestrating mob hits and sentenced to life is collecting a $63,000 pension.

Employment Situation

* The private sector lost some 5.2 million workers while government grew by 238,000 workers between July 2008 and July 2009.
* Since the recession began in December 2007, private sector employment has declined 5.74 percent, while government payroll has grown 0.83 percent.

Growing Debt and Unfunded Liabilities

* The total public debt is now at $11.8 trillion.
* Interest payments alone on debt came to $452 billion in 2008.
* The Congressional Budget Office states that by next year America’s debt will exceed 60% of its Gross Domestic Product (GDP). In 2023, our debt will exceed 100% of the GDP.
* The unfunded liability for Social Security is $17.5 trillion in 2009, according to the National Center for Policy Analysis. Medicare Part A is underfunded by $36.7 trillion, Part B by $37.0 trillion and Part D by $15.6 trillion, bringing the total unfunded liability for Social Security and Medicare to some $106.8 trillion!
* The unfunded liability for state and local pension plans was pegged at $400 billion, but American Enterprise Institute scholar Andrew Biggs estimates the actual amount of unfunded liability is more than $3.5 trillion if analyzed in the same manner as private sector plans.

Government’s Decisions for Dealing with Budget Shortfalls

* Colorado has proposed to free 3,100 inmates six months early and end the oversight of some parolees to save almost $19 million toward the state’s $318 million budget deficit.
* Arizona legislators are considering selling their own headquarters, the state fairgrounds and some 30 other state-owned properties to meet their budget shortfall. They could make about $735 million on the combined sales but would then lease back the properties, costing $1.2 billion over the next 20 years.
* In Texas, the city of Dallas will likely cut funds to public parks, libraries and recreation centers, resulting in less maintenance, fewer books, shorter hours and program cancellations.
* In Illinois, the city of Chicago made a $1.15 billion deal to privatize the city’s parking meters via a 75-year lease to ease Chicago’s budget deficit, but that money will be exhausted in 2010.
* Indiana privatized its toll roads to Australian and Spanish investors in 2006 for the next 75 years for a lump sum payment of $2.8 billion, but the one-time infusion of cash, meant to cover the state’s highway funding deficit without new taxes, will only cover the shortfall for 10 years.

The above are just a few examples of the more than 2,000 entries in The Free Enterprise Nation database.