Mayoral Candidates - Is It Time to Cut Employee Compensation
Posted: Mon Jun 25, 2007 7:04 am
For the last ten years or more private sector employees have been forced to forgo raises, accept pay cuts and reductions in health insurance benefits. As employers try to remain competitive in the face of fierce competition and a record tax burden employees have been forced to work longer hours for less.
Private pensions have been frozen, eliminated or greatly reduced. Social Security benefits have been cut to such a degree that most people under 50 won't even receive what they contributed.
Every industry has been affected except one: Government
State, County and City employees enjoy pay and benefits that no private industry can afford to pay. That pay and benefit structure has destroyed the ability of government to invest in infrastructure and development and has led to record levels of taxation that reduce economic growth.
That reduction in growth further reduces governments ability to invest in the future. Ohio's job growth is zero in a booming world economy. What happens during the next recession.?
Over the last few years Lakewood's $6 million reserve has been spent in an effort to maintain the pay and benefit package of City employees.
Now what?
It will require a substantial tax increase to maintain City employee pay and benefits. Such an increase will give this City some of the highest taxes in the country. Can we afford such an increase? Or is it time to confront the City work force with economic reality?
Private pensions have been frozen, eliminated or greatly reduced. Social Security benefits have been cut to such a degree that most people under 50 won't even receive what they contributed.
Every industry has been affected except one: Government
State, County and City employees enjoy pay and benefits that no private industry can afford to pay. That pay and benefit structure has destroyed the ability of government to invest in infrastructure and development and has led to record levels of taxation that reduce economic growth.
That reduction in growth further reduces governments ability to invest in the future. Ohio's job growth is zero in a booming world economy. What happens during the next recession.?
Over the last few years Lakewood's $6 million reserve has been spent in an effort to maintain the pay and benefit package of City employees.
Now what?
It will require a substantial tax increase to maintain City employee pay and benefits. Such an increase will give this City some of the highest taxes in the country. Can we afford such an increase? Or is it time to confront the City work force with economic reality?