Worker pay not reflecting budget rebound

While President Bush declares that the economy is improving, thanks to the administration’s tax cuts, the 2005 AFT Public Employees Compensation Survey suggests otherwise.

State employee salaries showed sluggish growth for the second straight year and continue to lag behind the private sector, according to the survey, the nation’s singular source on state compensation structures and salaries.

A major concern raised by this year’s survey is the fact that salaries showed such anemic growth at a time when most states were rebounding from budget deficits. Since the fourth quarter of 2003, states have recorded six consecutive quarters of revenue growth, with continued growth expected, according to the Rockefeller Institute of Government.

“With state finances moving in the right direction, states need to be wise stewards of their funds,” says AFT president Edward J. McElroy. “Instead of squandering resources on short-term tax giveaways for a few, states should invest in high-quality public services that will benefit the vast majority of citizens for years to come.”

Years of layoffs, hiring freezes and salary freezes have stretched public employees—and public services—to capacity, notes
McElroy, adding that relief is in order for the public’s workforce.

The median salary increase across the 45 jobs surveyed in the 2005 report was just 1.19 percent from 2004 to 2005. The inflation rate for the same period was 3.15 percent.

The survey also shows that collective bargaining pays. On average, the salaries of public employees with collective bargaining rights is 16.2 percent higher.

Union leaders are hopeful that the 2006 survey will show upward gains on state employee salaries. Numerous locals, armed with last year’s survey, negotiated and lobbied state legislatures for salary relief.

“We used the survey in our pre-budget negotiations with Gov. Brian Schweitzer to make the case that Montana public employees aren’t being paid adequately compared to their peers in other states,” says Terry Minow, political director of Montana’s MEA-MFT.

The union successfully made its case. Starting Oct. 1, Montana state employee salaries increased by 3.5 percent or $1,005, whichever is greater; and starting Oct. 1, 2006, their salaries are set to rise by 4 percent or $1,118, whichever is greater.

“This survey shows once again that public employees are a bargain to the taxpayers and citizens who benefit every day from essential public services,” says McElroy. “Public employees are the people who police our streets, inspect our food, maintain our parks, repair our roads—and, in general, see to it that our states and commu-

nities run smoothly and safely. Investing in public services—and the people who provide these services—is one of the smartest choices we can make.”

Reinvestment in the public workforce today is crucial for tomorrow. Many states estimate that more than 20 percent of their workers will retire in the next five years, heightening the need to attract highly skilled workers to the public sector.

“With so many experienced professionals expected to retire in the near future, certain states run the risk of a major ‘brain drain’ if they don’t make their salaries more competitive,” says Steve Porter, director of the AFT Public Employees division. “And the stakes are high. The quality public services that we’ve come to depend on—everything from clean air to safe bridges to health and human services—are at risk.”

The full report is available at www.aft.org/pubemps.