Thursday, May 01, 2008

Wisconsin Government Spending: Fixable?

With a $650 MILLION deficit facing the State in the next 18 months or so, and with only $250 million 'found' so far to stop the bleeding, we note that Wisconsin's public employees will be riding high.

State-local government employees in Wisconsin received an average of $12,171 in fringe benefits in 2005, exceeding benefits for private sector workers by more than 50%. Public benefits cost Wisconsin taxpayers $4.62 billion in 2005, or an average of more than $800 per person

...In every state, public benefits are greater than those in the private sector. However, Wisconsin’s gap (50.1%) was much larger than the nation’s (34.9%).

...In addition to costing more, public benefits have also grown faster than private ones. From 2001 to 2005, Wisconsin’s public benefits per worker climbed 41.6%, or an average of 9.1% per year. Private benefits have also grown quickly (up 34.8%, or an average of 7.8% per year), but at a slower rate than public benefits

Marty Beil, President of AFSCME, will tell you that this disparity is 'because Wisconsin's Gummint workers are underpaid' for their jobs.

Right.

The rapid growth in the cost of fringe benefits has important consequences. One, according to WISTAX, is that it limits salary increases. From 2001 through 2005, total compensation per worker rose at similar rates in Wisconsin’s public (4.0% per year) and private (3.8% per year) sectors. However, while public benefits per worker rose 9.1% per year during these years, private benefits rose less—7.8% annually. The faster growth in public benefits led to slower increases in public wages and salaries (2.4% per year) compared to those in the private sector (3.0%).

But, Marty!!! Marty!!! Until 2005, public-employee total comp rose FASTER than private-employee total comp!!

That's not the worst news, folks.

The worst news will emerge when our State and its subdivisions (cities, counties, school districts) have to account for "future benefits obligations" awarded to our Public Servants, and you discover that the taxes are going up, up, up to pay for those pensions and health-bennies.

Where's the Budget Deficit Repair coming from?

Let's start with de-cert of the AFSCME statewide.

HT: Owen

1 comment:

Dan said...

Here's the difference between Wisconsin and Nevada. In Nevada, we have a $950 million deficit. The governors solution- immediate 5% cut in the budget. With the exception of prisons and the highway patrol, no one was exempt, including education. Guess what? We are still alive and kicking with no apparent loss of services.
In Wisconsin, let's tax some more and more and more.
Nevada has a Republican governor while Wisconsin has a Democrat. The differences can't be clearer.