1. NEW YORK STATE ECONOMIC SURVIVAL GUIDE
ISSUE End the Double Standard
PUBLIC EMPLOYEE PAY IS UNFAIR
AND UNSUSTAINABLY HIGH.
State workers have an unfair advantage. The old Public employee unions retain unfair bargaining
notion that government employees are paid less than power, because there is no penalty for failing to
their private sector counterparts, but receive slightly agree to new contract terms. As our chief negotiator,
better fringe benefits, is no longer true. Statewide, Governor-elect Cuomo should strike a hard line in
excluding New York City, salaries for state and local 2011. Our state is an employer facing a financial
government employees are 15 percent higher than crisis, and we cannot afford a compensation system
the private-sector average.7 that rewards public employees at standards far above
the private sector.
Taxpayers also fund fringe benefits—including health
insurance, paid time off and pensions—for public
employees that far exceed private-sector norms. For
example, almost all public employees have defined-
benefit pensions, compared to only 20 percent of the steps to
SURVIVAL
private sector, where 401(k) accounts are prevalent.
In Monroe County, taxpayers would save more
than $40 million annually if school districts and Let the Taylor Law’s binding
local governments matched the national average for arbitration provision “sunset” in 2011
employer contributions for health insurance. Every
contract exceeded the private-sector average for paid Use private-sector benchmarks
time off—39 days for a 10-year employee—with a for salary increases and benefit
sharing in contract negotiations
median benefit that ranged 20 to 60 percent higher.8
Change the Triborough Amendment
Pensions cost the state nearly $1.5 billion, an amount so that pay and benefits remain
expected to grow to $2 billion by 2014. The average fixed if there is no contract
pension received by police and firefighters retiring Following the SUNY/CUNY model,
in 2010 ($61,295) is more than double that of regular immediately offer defined-
7 Payroll and employment 2009 data, civilian employees ($25,440).9 contribution retirement options
U.S. Bureau of Labor Statistics. for new employees, and pass the
Median private-sector pay is about Employee pay and benefits represent roughly two- bill moving all non-civil-service
$43,000 annually, compared to thirds of spending by state and local governments. employees to defined-contribution
nearly $50,000 for workers in state We cannot close the state’s budget gap without plans
and local government
addressing the issue. Make defined-contribution retirement
8 “Public vs. Private Sector Employee
Benefits: A Summary Analysis of mandatory for new employees by
School and Local Government There will be an opportunity to do that in 2011, when phasing in Tier VI as proposed by
Union Contracts in Monroe the governor renegotiates expiring contracts with many Governor-elect Cuomo
County,” CGR report, June 2009 of the state’s largest employee unions. In New York, Stop including overtime in final
9 “Things New Yorkers Should Know however, two unique statutes—the Taylor Law and salary calculations for pension
About Public Retirement Benefits the Triborough Amendment—combine to ensure purposes
in New York State,” Citizens Budget
Commission report, October 2010
that public employees continue to receive pay and
10 Medicaid & CHIP spending data, benefit increases even when they have no contract.
Kaiser Family Foundation,
www.statehealthfacts.org
11 “Medicaid in New York 2006,”
Citizens Budget Commission