Atlas shrugs
Written by Tim Higgins | | letters@toledofreepress.comMany of us working in the private sector have born a burden of guilt, told that we should take pity on public sector employees who were not being compensated at nearly the equal of those in the private sector. Now, as detailed by Chris Edwards in a recent piece by the CATO Institute, “Employee Compensation in State and Local Governments,” we see that many of the assumptions that we made about government employees and their level of compensation are in fact false. According to this article, “public sector pay averaged $39.66 per hour in 2009, which was 45 percent higher than the private sector average. The public sector advantage was 34 percent in wages and 70 percent in benefits.” In addition, most of these public sector employees are covered by “defined benefit” pension programs and retirement health benefits.
Some 84 percent of these workers are protected by such plans, as opposed to only 21 percent of those in the private sector. As a consequence of the continuing growth of public sector jobs (especially in comparison to those in the private sector), the ever increasing costs of these salary and pension programs is putting an almost unbearable strain on budgets of every level of government.
Here in Toledo, much of what the city is facing in this area relates to labor negotiations dating back to 1996. As detailed in a December 2008 Toledo Free Press editorial by Jim Harpen, “Carty’s $10 million-a-year mistake,” this all goes back to labor negotiations that year with AFSCME Local 7.
Then first-term Mayor Finkbeiner ended up pushing the negotiations into arbitration in the hopes of gaining a better deal for the city, and the fact-finder in the case determined instead that not only was the rest of the package fair, but that the city should make a “full pick up” of their employee pension contribution, which at that time was an estimated $3 million per year.
Because of a “me too” system of contracts that exists with union city employees in Toledo, it wasn’t long before police, firefighters, teamsters, and other AFSCME workers soon received this same pension pickup.
As Harpen pointed out more than a year ago, pensions are now costing the city in excess of $30 million, more than $10 million of which is the extra pickup. A recent contract negotiated with the police union in July 2009 deferred (but did not eliminate) this pick up for a period of six months this year, but will eventually cost the city a 3.5 percent salary increase for these employees in 2011 that could likewise affect contracts with other union city workers.
At the national level, things are little different. Even our members of Congress enjoy lavish levels of salary, pension and benefits. With their most recent pay raise, the average member of Congress now earns a staggering $174,000 per year, with the Speaker of the House and the Senate Majority Leader receiving additional compensation and perks.
As for their pensions, according to Martin Frost in the Foxnews.com article “Congressional pensions explained,” members elected before 1983 earn a benefit based on 2.5 percent of their highest salary for every year of service. Those elected after 1983 earn a pension based on 1.5 percent of their highest salary for every year of service.
Of course the different systems reflect the fact that starting in 1983, members also paid into and became eligible of collecting Social Security and both now carry a 401(k) plan that members can also contribute to. What this could mean in real money is that a member retiring this year after 20 years of service (under the old plan) would get up to 50 percent of his or her last three years’ pay (approximately $165,200 average), for a pension of $82,600. Records show us that members of Congress currently retired from that august institution currently collect an average of $60,972 per year.
So much of this reminds me of the 1957 novel by Ayn Rand, “Atlas Shrugged”, and I can only hope that this 50-year-old message still resonates enough to force them to step forward as to shrug off this unwanted and back-breaking burden before it becomes too late.
Tim Higgins blogs at http://justblowingsmoke.blogspot.com/.
…the chickens …have come home…to rooooost…and soon, it will be time to feed the bear ! AmeriKa’s, profligate spending will end in either 1) a well thought out plan of cutting spending and, rationale taxation or, 2 ) a GIGANTIC CRASH !! Recent history shows it was often America, that bailed out and assisted countries in distress financially or politically. Who’s going to assist us ?
This comment was posted on January 8th, 2010 at 12:54 pmTy,
I’ve gotta ask, you keep attacking this country in every comment you make. Why do you hate America (you keep spelling it wrong) so much?
This comment was posted on January 11th, 2010 at 4:24 pmHis misspelling is intentional. That’s the way it’s spelled by the Soviets. He also misspells ObaMao as an insult to the President of the United States of America.
This comment was posted on January 11th, 2010 at 7:57 pmBut I thought insulting the president was unpatriotic. I was reminded of that continually from 2001-2009. And why would Ty be sympathetic to the Soviets? I find it very hard to keep straight whom I’m supposed to hate when. Comrade Ty, can you help?
This comment was posted on January 12th, 2010 at 2:31 pmUT Student;
You’re trying to understand Ty Coon, which is a noble but fruitless pursuit. He’s so inconsistent and unstable that I’m pretty sure the other patients in his ward can’t figure him out, either. Reading his wacked-out drug-induced, FoxNews’d rants prove only one thing… they apparently allow the mentally ill access to the InterNet at some institutions. Looks like a waste of tax dollars to me.
Oh… do you smell something?
I think Ty is coming this way.
(Oh boy oh boy!)
Brace yourself for another keyboard-pounding display of poor English, lame nicknames, UPPER CASE “CAPS LOCK” SCREAMING, and affirmation that this Cretin has fecal matter between his ears.
Hold on while I get my popcorn… it’s such entertaining theater.
OK Cooney… have at it. :o)
This comment was posted on January 13th, 2010 at 2:20 pmHow is it you do not understand the words when I speak . Is it because you cannot bear to listen to my words ?
You vermin are targets of my efficaciousness and could NEVER understand or comprehend my words because you are incapable of edification.
I see that Kapturd, ObaMao, and the rest of the profligate spenders have increased our National Debt, from 44 % of GDP, to 53 %…in one year !!! These pukes added $2.2 TRILLION dollars to the debt in less than 365 DAZE ?!
Even your fellow heathen travelers in China, are telling these spendthrifts to STOP the SPENDING !!!
This comment was posted on January 13th, 2010 at 3:50 pmHere Coonie, Coonie, Coonie! Come here Ty. C’mon boy. C’mon…
This comment was posted on January 13th, 2010 at 5:01 pmNEWS ALERT: STOLEN , from Kapturd’s office, one giant pair of ” New Business Ribbon Cutting Scissors “, you know, those big cartoonish ones used to cut the yellow ribbon at new business openings.
NEWS UPDATE ALERT: FOUND, one giant pair of “New Business Ribbon Cutting Scissors “. They were found beneath a bunch of junk in Kapturd’s trunk, in a closet she uses to cover up her bizarre past. The scissors were rusted from non-use, and covered in dust and crud !
Kapturd’s , office droolers commented on the fact that they NEVER KNEW, that these scissors ever existed ! Even veterans of Kapturd’s reign were surprised of the scissors existence.
Steve, there, thought that they were used to cut the GIANT checks militant unions and Wall Street cronies of Demonrats, received from lied to taxpayors in the EMERGENCY PORKULUS RIPOFF LAWS passed by ” the sky is falling’ pysycopaths on the radical left.
This comment was posted on January 14th, 2010 at 10:56 amIt’s like Pavlov’s dogs. You just have to say something like “we should treat all people equally” or “immigrants are people too” or “a black man is president” and Ty goes all crazy. I think it’s just a conditioned response.
I have a dollar that says he can’t respond without using the phrase “Bancroft High”.
This comment was posted on January 14th, 2010 at 4:39 pmOh, Bancroft Hi weirdo, you do not have a dollar to bet with. Anyone still living in their mommies basement at your age is destined for the welfare lines the rest of your miserable life. Get used to it…dangerous, dimwitted ,insipid psycopaths like you aren’t the HIRING TYPE…I know !!
This comment was posted on January 14th, 2010 at 5:55 pmNEWS ALERT : Bancroft High School , has just awarded the ” Dung Eater Award ” for 2010 , to , he’s opening up the envelope , he’s getting the letter out now…it’s BANCROFT HI WHINERMOANERHOMUNCULE…yeaaaahhh, a well deserved award to such a complete JACKASS !!
The DEMONRAT Party symbol couldn’t have a more deserving mollycoddled milksop awardee !
NOW, post to someone who cares…
This comment was posted on January 14th, 2010 at 6:01 pmAnd to planlessthanzero, we’re thinking about planting a couple of acres of tomatoes next year as an Ag-project. We’ll need someone with your vast skills to pick them…doing ANYTHING meaningful next August ?
This comment was posted on January 14th, 2010 at 6:04 pmTy,
You silly little boy. You care, because you respond to each and every slight against you. Eating dung? Really? You’re fun.
This comment was posted on January 15th, 2010 at 12:08 amJust like fishin carp with doughballs.
This comment was posted on January 15th, 2010 at 7:53 pm