When public employees drive a hard bargain
At the time of year when local governments struggle to balance their budgets, Money Magazine columnist Janice Revell's column yesterday is eye-opening. She writes about city of Vellejo, Calif., forced into bankruptcy by high employee salaries and overly generous retirement benefits.
The city's work force is "heavily unionized," Revell reports.
"Under the current labor agreement, the average police officer walking the beat in Vallejo will be paid $122,000 this year before overtime, according to city documents. An average sergeant will make $151,000; a captain, $231,000. The average firefighter, meanwhile, will bring in $130,000 before overtime.
"That's just the salaries, though. The final budget-crusher was the city's pension plan. Thanks to retroactive benefit enhancements approved by the city council in 2000, police officers and firefighters can now retire at age 50 and receive an annual pension equal to 90% of their final pay (assuming 30 years on the job), an amount that gets increased every year to help keep pace with inflation."
Can't happen here, thank goodness. For one thing, state law doesn't allow collective bargaining for public employees. Unions lack the power to push salaries and benefits to unaffordable levels.
But that could change. A bill passed by the U.S. House of Representatives last year but currently stuck in the Senate would override North Carolina law and give public-safety workers collective bargaining rights.
It's being pushed by Democrats, who likely will have the horses to enact the measure into law next year.
Comments (6)
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Good grief; I can't imagine what taxes are like in Vallejo, given those salaries.
Now, I'm highly supportive of law enforcement and believe they often are underpaid. I certainly believe law enforcement officers should make a good living and enjoy a generous benefits package. After all, their jobs are far more dangerous than the average occupation.
But these salaries seem way out of line for public employees. Collective bargaining is good for public employees, but it's bad for the community that has to pay the bills.
On the other hand, if any public employee was to get a $230,000 salary, I'd much rather see it go to a police officer than an overpriced school superintendent.
Posted on June 4, 2008 11:32 AM
I agree with all your points.
In North Carolina, why should the director of the state lottery make five times as much as a police officer or teacher?
And let's not even get into football coaches at public universities pulling down $2 million a year for battling it out with schools like McNeese State!
Posted on June 4, 2008 11:40 AM
Well, like you, I've been opposed to the lottery from the start. The whole thing has a dirty smell to it and the lottery director's salary is no different.
I also agree about the football coaches. Athletics have been the "tail wagging the dog" in American colleges & universities for decades.
Posted on June 4, 2008 11:56 AM
It is disturbing that the federal government could pass a law that overrides a state law in an area that is not the rightful territory of the federal government. It may make some sense for the feds to control certain areas of our society to provide consistency throughout the various states, but this is overreaching by the federal government, but then, it is likely a glimpse into the future of our country for the next four years with an ultraliberal president and both houses of Congress. Based upon some of the rhetoric of some of these people recently, we could be looking at private industries being nationalized, along the lines of Chavez and Venezuela.
Posted on June 4, 2008 12:22 PM
At the time of year when local governments struggle to balance their budgets, Money Magazine columnist Janice Revell's column yesterday is eye-opening. She writes about city of Vellejo, Calif., forced into bankruptcy by high employee salaries and overly generous retirement benefits* Doug
Not really correct! The city of Vellejo is located near San Francisco and was blown out of income, when the Mortage companies and the Homeowners market went south, leaving no property tax to collect. This is just the tip of iceberg that is to come to all cities and local governments in a very short time for the future.
Posted on June 4, 2008 12:54 PM
Yay! Finally a municipality that endorses a living wage!
Posted on June 5, 2008 6:51 AM