EDITORIAL: Public employee pay - Opinion

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Aug. 19, 2008
Copyright © Las Vegas Review-Journal

EDITORIAL: Public employee pay

City survey must compare compensation to private sector's

The city of Las Vegas is prepared to pay a consulting firm $360,000 to quantify what council members, administrators and taxpayers already know: public employee salaries and benefits are breaking government budgets.

These are the stark numbers the City Council is expected to hear this week before approving the contract: About three-quarters of all city spending is already swallowed by personnel; the city's labor costs are expected to increase 6.7 percent annually through 2013, while revenues are projected to grow by only 5 percent per year over the same period; and after cutting $20 million from the city's budget this year, the council can expect annual budget deficits twice as large in each of the next two years.

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How did things get so bad? During the valley's breakneck growth of the 1990s and the first half of this decade, tax revenue poured into public treasuries faster than politicians could spend it. So they handed it over by the truckload to their pals in the public employee unions.

Everyone from firefighters to janitors routinely get annual "step" raises of 4 or 5 percent, plus cost-of-living adjustments of 3 or 4 percent, regardless of performance. In addition to receiving salaries and pay raises that far exceed those awarded in the private sector, public employees pay no Social Security withholding, boosting their take-home pay (and quality of life) by another 6 percent. They pay nothing toward their health insurance premiums, and many pay nothing from their own wages toward their defined-benefit pensions.

To understand how lucrative that benefit is, imagine your employer contributing an amount equivalent to 20 percent of your base salary to your 401(k) account each year without requiring you to set aside a single dime -- and then guaranteeing a high rate of return regardless of whether the stock market tanks.

A Las Vegas Chamber of Commerce study released earlier this summer found that state and local government workers in Nevada are paid, on average, 28 percent more than private-sector workers, without considering the costs of public employees' expensive benefits packages.

Over the years, the City Council and other government overseers have simply shrugged their shoulders while approving new contracts with employee unions, declaring their hands were tied by the secretive collective bargaining process. The taxpayer has been left without a dog in the fight.

But the City Council knows that this type of generosity -- allowing expenses to continue to grow faster than revenues -- can't be sustained any longer, even if the local economy quickly recovers from its current slump. So when the city firefighters contract comes up for renewal in 2009 and the rest of the city's workers follow in 2011, council members want administrators armed with detailed figures that show significantly higher salaries can't be justified for most city positions. Such information could be the determining factor if contract negotiations fail and go to arbitration.

If the study is authorized by the council, as expected, it will be the city's first in about 14 years. It would compare the salaries and benefits of city employees to those of other government work forces. An initial review of several positions found some Las Vegas salaries were comparable to their counterparts in cities such as Phoenix and Salt Lake City, as well as other Clark County municipalities. A few were paid 10 to 20 percent more.

If this approach is taken with all city of Las Vegas jobs, it will be a complete waste of time and money. Government salaries have risen significantly faster than those of private industry all across the country. They've mushroomed not because of natural market pressures, but because of bogus salary surveys that warn of mass resignations if more pay raises aren't awarded.

No, this salary survey should finish what the Las Vegas Chamber of Commerce started by comparing city worker salaries and benefits to their private-sector counterparts here in Clark County. Let the city's lavishly compensated secretaries, landscape maintenance workers, communications professionals, security guards, computer technicians and middle managers see how much better off they are than their privately employed colleagues -- and then try to justify even higher pay at the struggling public's expense.

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Please enter your name Name: Please enter your email Email: Please enter a comment COMMENTS : (word count limit is 300) You have reached the maximum number of words allowed Current Word Count: Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background. See the Truth wrote on October 10, 2008 10:15 PM: What the article doesn't cover in enough detail is the outrageous pay given to the firefighters here in Las Vegas (County & City) with firefighters making almost $200,000 in base pay and overtime. They then spend 90% of their time on medical calls that are then handled by AMR and Medicwest. It's time to reign in the pay and equipment costs for a fire department that spends very little of its time fighting fire. DonnieB wrote on August 25, 2008 12:57 PM: I work for a reputable consulting firm in a large southern city and I'm shocked to see the alleged price tag on this study. While I don't know exactly the scope and the City's website does not appear to contain any more information, we've done similar studies for other large cities for a whole lot less than $360k. Something doesn't seem to be adding up. Sad Summerlin wrote on August 20, 2008 04:31 PM: The beauty of the United States is that we are free to choose what we do for work... no one is forcing anyone to stay in a public or private sector job... If you are unhappy with the pay... do something else... take University of Phoenix courses, go back to CSN, or better yet, just start looking for another job (public or private)... The problem is... we prefer to complain rather than do anything... it is getting boring how many of these same editorials we get with the same exact responses... "If you did what I did, you'd want more money" "You are lazy and happy in your job so quit complaining" "My husband has worked 20 years in the same job and gets less than someone in the private sector" "When times are good private sector benefits but we get forgotten"... Here's an idea... shut up! Go back to work! If you are unhappy... work to change YOURSELF... don't expect others to do it for you... off soapbox now charlotte wrote on August 20, 2008 11:12 AM: To odog Yes I work! I am a Paralegal full time and make a great salary. We just prefer to work hard to give our family better than average. But thanks for your narrow minded point of view. Not Rich wrote on August 20, 2008 09:15 AM: As a public employee I do pay into my retirement and do pay for a portion of my insurance. Yes I understand it is better than what a lot of the others have is why I chose to answer the add, test, and interview. It wasn't a birth-right. I also do get step increases because I did not start out at the advertised salary. It will take me 7.5 years to reach this advertised salary and then after that I get only COLA increases, which are negotiated. I am also lucky in that my wife can be a stay at home Mom instead of half of her salary going to day care. We don't vacation every year or drive expensive cars. As in every form of government there is "fat" but to label all PERS employees as 'the problem'... come on, get real. odog wrote on August 19, 2008 09:20 PM: Charlotte Since your husband has a second job, that must mean that you dont work. My wife and I work at least 10 hrs daily and usually 6 days a week. Sometimes seven days a week. The high taxes are part of the reasons we have to work so much. Most of the public servants that I know have a lot more than we do, and we have no children. Maybe it is because we along with all of the other 42% of the non government work force are paying too much for all the public servant's salaries. joe f wrote on August 19, 2008 07:59 PM: Not only am I wealthy because of my state salary, I need that excellent health benefits package because I hurt my back carry all that money in my wheel barrel. No wonder why all these college graduates are lining up for those extravagant teacher's salaries. My $26,000 starting pay was almost half of my new UPS driver. People deserve the government it has. Here is a thought. The government is not supposed to be efficient. Limited gov't and such... Pathetic wrote on August 19, 2008 07:42 PM: One word describes hiring some damn "consulting" firm... PATHETIC! I wonder who is getting the kickback, this time? dcool wrote on August 19, 2008 06:33 PM: I am a public employee,Corrections, this article is full of half truths. I do pay for my Health insurance.I do not get a raise if my employee performance is below standard.I do set aside money for my retirement to the tune of 28%.These jobs are open and online for anyone to apply for, so if the writer would like to join me in working with convicted felons please feel free to apply. Tim wrote on August 19, 2008 05:14 PM: listen to the overpaid and generously benefited bearuocrats cry foul.did you expect anything less?that 360,000 grand goes to a company picked by their leaders to justify more raises.if it was'nt so crimminal, it would be funny. Read All Comments