New comparison tool shows state workers are paid more than private sector

Press Release from yesterday:

NEW COMPENSATION TOOL LETS OHIOANS COMPARE THEIR COMPENSATION PACKAGES TO STATE GOVERNMENT WORKERS

June 6, 2011-COLUMBUS, Ohio - The Buckeye Institute for Public Policy Solutions today launched the new Government Compensation Comparison Tool. This tool gives private sector Ohioans the ability to compare their compensation packages to that of state government workers.

The average hourly rate for state workers in 2010 was $25.28, which equals an average yearly salary of $52,580.

The highest hourly rate for a State of Ohio employee was a physician who was paid $101.79 per hour.

The highest paid state worker earned $325,700, including more than $174,000 in overtime pay.

A comparison of state worker salary averages and private sector worker data from the Bureau of Labor and Statistics for Ohio shows that in many cases state workers are paid much more than their private sector counterparts. Below are a few examples of private vs. public sector compensation:

· Cashiers: (private) $18,830 vs. (public) $35,511

· Laborers: (private) $25,500 vs. (public) $29,752

· Janitors and Cleaners: (private) 24,670 vs. (public) $30,620

· Registered nurses: (private) $60,590 vs. (public) $65,660

· Customer-service representatives (private) $32,500 vs. (public) $41,156.

The Government Compensation Comparison Tool can be found at http://buckeyeinstitute.org/job-comparison

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The Buckeye Institute for Public Policy Solutions is Ohio's premier free market think tank. Based in Columbus, Ohio, the Buckeye Institute has provided the research and solutions to Ohio's toughest public policy challenges in economic freedom and competitiveness, job creation and entrepreneurship, and government transparency and accountability for over 21 years.

Congressional pay cut?

Representative Morgan Griffith (R-VA9) has introduced H.R. 335 "To provide for a 10 percent reduction in pay for Members of Congress."

The bill was introduced in January and referred to the Committee on House Administration and the Commitee on Oversight and Government Reform.

This is a no-brainer for every member of Congress. Republicans who want to cut government spending should be signing up by the droves. Democrats who always complain that more money is needed for all kinds of various programs and spending can lead by example by doing what they're always telling us to do - give their own funds to advance the needs of the "underserved" and "less fortunate."

Sadly, though, this bill currently has no co-sponsors. Not one!

Members of Congress: put your money where your mouth is!

Here is the text of the bill:

A BILL
To provide for a 10 percent reduction in pay for Members of Congress.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. REDUCTION IN PAY FOR MEMBERS OF CONGRESS.

(a) Reduction- Notwithstanding any other provision of law, the annual rate of pay for each Member of Congress shall be as follows:

(1) For pay periods during the period beginning October 1, 2011, and ending December 31, 2012, the applicable rate in effect as of the date of the enactment of this Act.
(2) For pay periods occurring during 2013, the applicable rate during the period described in paragraph (1) reduced by 10 percent, rounded to the nearest multiple of $100 (or, if midway between multiples of $100, to the next higher multiple of $100).
(3) For subsequent pay periods, the applicable rate during 2013, subject to adjustment under paragraph (2) of section 601(a) of the Legislative Reorganization Act of 1946 (2 U.S.C. 31(2)).

(b) Member of Congress Defined- For purposes of this Act, the term `Member of Congress' means an individual serving in a position under subparagraph (A), (B), or (C) of section 601(a) of the Legislative Reorganization Act of 1946 (2 U.S.C. 31).

In Case You Missed It

"In Case You Missed It" is a new category I'm adding to the blog. It will consist of interesting things I've come across that I think you should read and/or know. I'll do this periodically and hope you'll enjoy the the highlights and take the time to read the entire articles linked.

Presidential Property - Tim Higgins at Just Blowing Smoke takes a look at the concept of personal property and the interference of the government when it comes to contracts and salary. He makes a really good argument for why government has no authority in the matter, not that anyone in D.C. is listening...

Not News: 4Q09 Treasury Collections Down 11% from Previous Year - Tom Blumer at BizzyBlog, known for paying attention to fiscal matters, details how revenue projections from the Congressional Budget Office are off and won't likely be met. This is critical! Congress spends based upon their projections, but it looks like the CBO is taking lessons from Toledo budget predictions - creating estimates of income that clearly are not based in reality, nor reflective of the collections so far.

Employee Compensation in State and Local Governments - Cato Institute takes a look at the costs of employee compensation in state and local governments and how those costs are not really going down, despite reduced revenues. Many continue to assert that government workers have better benefits to compensate for a lower wages than what they could earn in the private sector. But the figures from Cato proves this to be a myth.

The average Average Compensation for 2009 (in Dollars per Hour Worked) is $26.01 for state and local employees but only $19.39 for the private sector. Even when you break down the nation by regions to account for significantly varying wages across the states, you find that government employment often pays around 26% more than private employment does.

I hope you'll take the time to read the entire bulletin.

The Patriot Post:

"The multiplication of public offices, increase of expense beyond income, growth and entailment of a public debt, are indications soliciting the employment of the pruning knife." ~ Thomas Jefferson