STOP THE LIES: PUBLIC WORKER PENSIONS ARE NOT THE PROBLEM

Rochester, N.Y.-- There seems to be a lot of jealousy toward public employees out there-- most of it powered by an impression that public workers get more money for less work. But via Kevin Drum comes this table (see table below) from the Economic Policy Institute, which suggests this is just not true.

And, on October 15th, Ezra Klein had an excellent piece on the Washington Post’s website that gets to the truth behind public employees benefits. He demolishes the myths that retirement security for public service employees is not overburdening state budgets. Klein says, “Pension obligations currently account for 3.8 percent of the average state’s spending. That’s not where the current crisis is coming from.” AFSCME retirees receive an average of $18,000 to $19,000 per year after retirement and contribute toward their pensions throughout their working careers. Eighty percent of the funds come from investment returns facilitated by the State Comptroller's Office and contributions by the employees themselves.

Click on image for a larger view

The facts are clear: state and local public employees make 11 to 12 percent less in salary than those in the private sector, when education and experience are considered, as demonstrated by recent research by the Center for State and Local Government Excellence. Additionally, state and local public employees’ total compensation (including salaries and benefits) is approximately 7 percent less than that of private sector workers.

Unionized workers are not the enemy

When we think of public employees and budget spending, why does the general public immediately think of unionized workers? Well, it's because we are a convienent scapegoat for politicians, bureaucrats and the private sector business community and they have done a wonderful job spinning the media narrative in their favor.  Most of the cost for pensions comes from high ranking, confidential, appointed and elected personnel, not your snow plow drivers and librarians.  Even so, most public employees spend many years of their career paying into their pension-- these are not gifts-- we've earned them contractually by law and hard labor.  Again, pensions afforded the middle class are not threatening state and local budgets, lawmakers and their big donors are.

In the Klein article, he also makes a powerful argument that the problems facing state governments are all because of the failure of Wall Street and the horrible economy and it's time we stop blaming healthcare workers at Monroe Community Hospital and teacher assistants at the Monroe County suburban school districts.

In the months before the financial crisis, in fact, states had built up record rainy-day funds and were starting infrastructure projects. Then Wall Street collapsed, and so too did the revenue states got from taxing property, incomes and sales. At the same time, the need to spend on social services went through the roof.  What was the result? A terrible strain on state budgets-- but you can not blame public employees pensions for the cause.  And yes, compromise in future budgets will be settled through contract negotiations, just like it has since the Taylor Law went into effect back in 1967.

Also, when Wall Street was booming in the 1990's and early 2000's, local governments paid little or nothing into the New York State and Local Retirement System.  Now that greedy bankers and Wall Streeters tanked the economy, they naturally want to blame someone else and public employees are an easy target.

Once and for all, let's look at the facts and tell the American people the truth.  We at the Voice Reporter are asking you to join the Stop the Lies campaign today.