Governor’s Budget 'Poor Mouthing'

Michigan Capitol Confidential ^ | 7/10/2010 | James Hohman

[MichCapCon]

Gov. Jennifer Granholm cried poverty recently, claiming that her administration already cut 11,000 state employees and that the state cannot make further cuts without lowering "critical services that struggling families count on to survive in this tough economy."

However, the claim is misleading. There are fewer employees, but the reduction hasn't saved taxpayers any money, because due to higher compensation levels we're paying more overall even with less workers on the job. Indeed, total compensation costs jumped from $3.9 billion in fiscal year 2001 to $4.7 billion in 2008, the most recent year for which information is available. The average state employee now costs taxpayers $93,039 to employ for a year.

To put that in context, the $787 million cost increase since 2001 is more than enough to triple the appropriations to community colleges. It also puts a different spin on the governor's claim that she "negotiated more than $650 million in employee concessions."

In addition, it's hard to argue that reducing some of these costs, such as the $1.1 billion spent on state and school retiree health care, would represent a reduction of "critical services," since these retirees are no longer providing any...

[MichCapCon]

MI ping

[cranked]

Another libtard run and/or controlled state that is having hefty state debt issues.....along with California, Illinois, NY......

[MaggieCarta]

Bringing state, school and local government employee fringe benefit levels down to private-sector averages would save $5.7 billion, without cutting a penny from welfare checks or Medicaid reimbursements.

Well, good luck with that. Having worked in the private sector, I am always amazed at how the teachers whine about paying what are really modest amounts for their platinum, premium, benefit packages.

[SunkenCiv]

Granholm cried poverty recently, claiming that her administration already cut 11,000 state employees... but the reduction hasn't saved taxpayers any money, because due to higher compensation levels we're paying more overall... total compensation costs jumped from $3.9 billion in fiscal year 2001 to $4.7 billion in 2008... The average state employee now costs taxpayers $93,039 to employ for a year... the $787 million cost increase since 2001 is more than enough to triple the appropriations to community colleges. It also puts a different spin on the governor's claim that she "negotiated more than $650 million in employee concessions."