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Average government compensation package over $100,000 a year
Posted: Sun Aug 06, 2006 7:49 am
by Bill Call
More and more Lakewood City employees and Lakewood School District employees have compensation packages that exceed $100,000 per year.
Given stagnating revenues, private sector job losses and private sector downsizing is it time for the City and school district to examine government compensation packages?
Is is fair or is it smart for the City to reduce spending on infrastructure and development and spend more and more on salaries and benefits?
See:
http://govexec.com/dailyfed/0806/080406r1.htm
Posted: Sun Aug 06, 2006 8:22 am
by Joan Roberts
Mr. Call.
You've posted on the topic of public employee salaries several times, and I thank you for keeping this important topic in front of people.
I submit though, that focusing on salaries alone is only part of the story. Any analyst will tell you that a rational analysis of labor costs also must factor in productivity.
While we can see compensation in black and white, we are in the dark about productivity yardsticks. If one $100,000 person needs to be replaced by 3 $40,000 workers, that's a net loss.
Obviously, with the city and schools, there is x amount of work that absolutely must be done. Is productivity gaining along with compensation? If so, taxpayers are getting a good deal, even with $100,000 workers.
But it's hard to get that kind of info, isn't it?
Posted: Mon Aug 07, 2006 7:30 am
by Jeff Endress
When looking at some of these numbers, you also have to take into account the various underlying Union contracts which make it difficult, and very expensive, to terminate some employees. As reported in the PD, a recent attempt to terminate a LHS teacher resulted in an agreed "retirement", which cost the district 228,000 in legal fees......In that instance, the board was between a rock and a hard place, looking at the termination costs on one hand, and the prospect of various civil cases for allowing the teacher to remain on the other......
But, without a complete overhaul of underlying contracts, and an analysis of the costs involved there, and an analysis of the costs of termination of employees, an examination of salary levels is missing major components in a discussion of the overall economics.
Jeff