Excuse me, but I assumed you have something factual to support your continued insinuation that the WI state employees' total compensation is excessive when comparing apples to apples. All you have to do to refute me is link this DATA. No? Are you now conceding that you don't have such data, that you're merely reacting emotionally based on what you want to believe is true?
The study I'm citing was linked in an earlier thread, one you abandoned when it was shown actual DATA contradicts your position. If you have something to refute that study, I'd suggest returning to that thread and presenting it. So far you guys have been hopping from one thread to another, parroting the same discredited propaganda based on an absurd "study" comparing primarily educated, white collar professionals to the aforementioned "high school drop-outs working at Wal-Mart and McDonalds." Professional earn more! Film at 11:00!
Clearly if I fled from the thread because of the study then I'd know about the study. For the record, I have no problem acknowledging when I am clearly wrong in point of fact. But I gave you the benefit of the doubt and perused 37 fucking pages of the OTHER thread on this kerfuffle. On page 37, you began asserting that "data" proved that Wisconsin public employees were underpaid. I am unable to find any study except the ones linked by tk149. The first study he posted asserted only that average Wisconsin TEACHER salaries averaged $74,843 total compensation.
http://www.politifact.com/wisconsin...-rand-paul-says-average-public-school-teache/
The average Wisconsin worker earns around $58,000, including benefits. While it's certainly possible and valid to quibble that state employees are better educated, remember that these are the people who have to pay their salaries and (currently) their benefits.
http://politifact.com/truth-o-meter...siness-news-eric-bolling-says-wisconsin-teac/
You have to dig a bit deeper to get a deeper comparison. Here's O'Keefe's, which I reached by following some links from tk149's studies.
http://epi.3cdn.net/8808ae41b085032c0b_8um6bh5ty.pdf
Note especially that O'Keefe compares across levels of education, NOT across comparable jobs. A bachelor's in education is treated exactly the same as a bachelor's in, same, organic chemistry. Fine. But when we get to master's degrees, now we have a problem. A teacher (or many other state employees) automatically gets a significant pay raise for attaining a master's degree, even though, as I've mentioned, that master of administration degree means fuckall to a second grade teacher. In the private sector, no such automatic pay raises exist for the vast majority of businesses and jobs. A master of neuroscience degree will not get you a raise unless and until there is a position open that requires that degree AND you are the ONE applicant selected, even though most people would agree that a master of neuroscience degree is vastly more difficult to obtain than is a master of education degree. Indeed, the Master of Professional Science doing high level research becomes equal to the second grade teacher with her master of education degree in O'Keefe's analysis. Now we have a problem, we're no longer comparing apples to apples, we're merely asserting that oranges are more or less apples when we find that useful.
There is another problem as well - teachers. While O'Keefe admits that government employees work fewer hours, his compensation is 2%. Public sector employees work 2% fewer hours compared to private sector employees. Since teachers work roughly 34 weeks a year and form a very large (70% in O'Keefe's study) part of public sector employees - but a very small part of private sector employees - that is clearly bunk. Nearly everyone in the private sector works 46 or more weeks a year; 70% of the public sector employees in O'Keefe's study work roughly 34 weeks a year. You could count part time employees, but since they get paid proportionally plus get hosed on benefits, that only makes public sector employees look better. You do the math, but from where I'm sitting, it's bogus.
Bender and Heywood did a somewhat better study, actually controlling not only for education but also for (roughly) occupation.
http://www.slge.org/vertical/Sites/...ds/{03E820E8-F0F9-472F-98E2-F0AE1166D116}.PDF
They found that state and local government workers are slightly under compensated, while federal workers are over-compensated. But ignoring the fact that these are two state employees "proving" that state and local government employees are under-compensated by 11% (6% with benefits) and therefore that "equal sacrifice" requires that state and local government employees, in a year (2010) of budget shortfalls, not take cuts in salary and/or benefits, their study had one significant (and surely unintentional) error. Namely, it assumes that benefits are the same between private and public sectors. They are not. Biggs and Richwine did the same study earlier and concluded that state and local government employees receive a 12% premium in total compensation. The difference is due to the fact that the vast majority of private sector employees receive finite or defined contribution benefits; their employers pay a set amount of health insurance and pension costs, and their responsibilities end there. By contrast, most state and local government employees have defined benefits retirement plans, including pensions and health insurance after retirement (which is compounded by the typically younger minimum retirement age of state and local government employees.) To quote Biggs:
http://www.american.com/archive/2010/june-2010/are-government-workers-underpaid-no
But Bender and Heywood’s result holds only if public and private workers receive similar benefits, as the authors believe. Since the CPS doesn’t report benefits directly, Bender and Heywood use data from the National Compensation Survey (NCS), which reports how much employers spend on a variety of non-wage benefits. According to the NCS, both state and local governments and large private-sector employers pay fringe benefits equal to around one-third of their total compensation. Put another way, for each dollar of salary they receive, their employer devotes around 50 cents toward benefits. If these data are dispositive, then state and local workers receive total pay around 11 percent below private employees.
But here’s the problem. In the private sector, the amount employers spend on workers’ benefits is a good measure of what the employees themselves will receive. Most private-sector employers pay matching contributions into 401(k)-type pension plans, premiums for health coverage, and other similar benefits. Once employers have paid these costs, their obligation ends.
Not so in the public sector. In addition to health coverage and other benefits that are consumed today, most state and local employees also become eligible for defined-benefit pensions and health benefits in retirement. But state and local governments haven’t come close to fully funding these obligations. That means that the amount government employers spend today may be well less than what employees will actually receive when they retire. (Just because these benefits are underfunded doesn’t mean they won’t be paid; in most cases, payment is required by law or state constitutions.)
<chart linked below>
Given the data available, it’s not easy to precisely calculate the effect of unfunded benefits on public-sector compensation. But here’s an initial attempt to shake the numbers out, starting with defined-benefit pensions.
As of 2006, pensions were funding only around 9 of the required 11 percent, leaving a gap of 2 percent of pay that is unfunded.
State governments need to set aside around 11 percent of workers’ pay each year to cover existing pension costs and the additional benefits generated by workers in that year, according to 2006 data compiled by the Center for Retirement Research at Boston College. Due to rising costs and declining pension assets, today that required contribution rate is likely higher. But, as of 2006, pensions were funding only around 9 of the required 11 percent, leaving a gap of 2 percent of pay that is unfunded.
That doesn’t sound like much. But it’s also increasingly understood these figures are a significant underestimate of what pensions truly should be funding. As I’ve written elsewhere, if pension funding were calculated using private-sector accounting methods—which is in any case a good approach, since we’re trying to compare public- and private-sector benefits—public pensions’ reported funding shortfall of $438 billion (as of 2008) rises to slightly over $3 trillion. To fully fund these pension promises would require annual government contributions not of 11 percent of workers’ wages, but of around 75 percent. But since these benefits will be paid, it makes sense to focus on what governments should fund, not on what they’re currently funding.
It’s a similar story with retiree health benefits, which generally provide full health coverage for public employees from the time they retire until they become eligible for Medicare and so-called “Medigap” coverage thereafter. Overall retiree health liabilities are smaller than for pensions—around one-fifth the size, according to a recent Pew Foundation report. The problem is that they’re almost entirely unfunded.
To fully fund these pension promises would require annual government contributions not of 11 percent of workers’ wages, but of around 75 percent.
A study by the Center for State and Local Government Excellence showed that states should devote an amount equal to around 13 percent of public employees’ pay to funding their retiree health benefits. But as a recent Pew Foundation report showed, most states fund only around one-third this much. In other words, state and local workers are promised unfunded retiree health benefits worth around 9 percent of pay, but this value isn’t reflected in compensation data.
I’m hesitant to put a total value on these unfunded promises, given the multiple moving parts and haphazard state of the data. But if public-sector workers are promised pension benefits that should require another 60 percent of wages to cover and retiree health benefits that should require an additional 9 percent of wages, then total effective compensation is almost 50 percent higher than you would conclude based solely on what government currently pays its employees. That’s more than enough to make up for Bender and Heywood’s 11 percent gap in what government employers currently pay relative to the private sector, and would leave state and local workers almost one-third better paid overall.
Now, there may be some reasons to scale these estimates back a bit. But the generosity of public-sector pension and retiree health benefits and the degree of underfunding mean that looking only at what government employers currently pay toward benefits isn’t representative of what government employers—and the taxpayers—ultimately will pay for these benefits.
http://www.american.com/graphics/2010/Compensation Chart.JPG
Your move, Beavis. But in any case, remember that it is not necessary to believe that public sector employees are overpaid to believe that public sector employees should not have collective bargaining.