Out of Sync: Government and Private Employee Compensation in Illinois

8/6/2019 Out of Sync: Government and Private Employee Compensation in Illinois

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OufSc

Government and Private EmployeeCompensation in I l l inois

By Wende ll CoxJly 19, 211


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Wendell Coxis an international public policy consultant in Belleville, Illinois, who specializes in government compensation and other issues.Amanda Grifn-Johnson provided research assistance for this report.

CEcu Su...................................................................................................................... 1

K Fg.................................................................................................................................. 2

OutofSync:GovernmentandprivateemployeecompensationinIllinois

Iuc .......................................................................................................................................5

Ag E C I ............................................................................5

E C T ....................................................................................................8

G P E C Cb .................................

N-M Ag f G E .................................................5

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A: D C E .................................................................................0

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The Institute guarantees that all original factual data (including studies, viewpoints, reports, brochures and videos) are true and cor rect and that information attributed to other sources

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GraphicsGraphi 1: 2 Waes & Benets: Illinois Fll-Time Eqivalent Employees ..........................................................................................

Graphi 2: Estimated Annal Compensation per Fll-Time Eqivalent Employee: 2 ......................................................................

Graphi : Compensation per Hor Worked, State and Private Employee ...............................................................................................

Graphi 4: Waes and Salaries: 199-2, Annal Averae or Fll-Time Eqivalent Employees ....................................................1

Graphi : Employer Paid Benets: 199-2, Annal Averae or Fll-Time Eqivalent Employees.............................................1

Graphi 6: Employee Compensation: 199-2, Annal Averae or Fll-Time Eqivalent Employees .........................................1

Graphi : Cmlative Employee Compensation - Comparale Jos, Estimated Private and State Government: Career ..............12

Graphi : Projeted -Year Career Waes, Fll-Time Eqivalent Employees .....................................................................................14

Graphi 9: Projeted -Year Career Benets, Comparale Fll-Time Eqivalent Employees............................................................14

Graphi 1: Projeted -Year Career Compensation, Comparale Fll-Time Eqivalent Employee ...............................................14

Graphi 11: Cmlative Compensation or Time O, Estimated Private and State Government Employee: Career .......................1

Graphi 12: Projeted -Year Horly Compensation, Comparale Fll-Time Eqivalent Employee...............................................1

Appendix Tale A-1: Estimated State Government Employee Annal Compensation y Fntion: 2,Ranked y Waes and Salaries per Fll-Time Eqivalent Employees ................................................................2

Appendix Tale A-2: Estimated Loal Government Employee Annal Compensation y Fntion: 2,Ranked y Waes and Salaries per Fll-Time Eqivalent Employees ................................................................21

Appendix Tale A-: Estimated Private Setor Employee Averae Annal Compensation y Indstry: 2,

Ranked y Waes and Salaries per Fll-Time Eqivalent Employees ................................................................22


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KeyFindings

Average Employee Compensation in Illinois

Overall, the average compensation for an Illinois government worker is higher than the average

compensation for a private sector worker in Illinois. It is estimated that in 2008:

Compensation per state government employee averaged $69,500, which is 23 percent more

than the private sector worker average of $56,500. Much of the difference was in employer-

paid benets, which were more than 1.5 times that of private employees. State employees

received 16 percent more in wages and salaries than private employees.

Compensation per local government employee averaged $63,100, which is 12 percent more

than the private sector worker average of $56,500. Much of the difference was in employer-

paid benets, which were more than 1.5 times that of private employees. Local government

employees received 4 percent more in wages and salaries than private employees.

Compensation Per Hour Worked:The gap between state and private employee compensation is

greater per hour worked. The more generous state government paid time off policies raise the state

government employee compensation advantage to 28.8 percent over private employees.

Likely Understatement of Government Employee Benets: These data, it should be noted,

appear to understate the difference between government and private employee compensation in

Illinois.

The state has underpaid its annual pension and retiree health care obligations for some

time. These decits, which amounted to $2 billion in 2008 alone, will need to be paid. If the

payments had been made on time, recorded levels of state employee compensation would be

higher.

There also is evidence of underpayment of annual pension and retiree health care obligations

in local governments, though the extent of underfunding is undetermined.

Further, the cost to taxpayers has been increased by the failure to make on-time payments, because

of the obligation to pay interest on decient balances (interest that would otherwise be earned by

the funds). However, this is not a cost of employee compensation, but rather results from the states

nancial management difculties.

At the same time, government employee compensation has been rising faster than that of private

employees. Between 1993 and 2008, overall full-time equivalent state employee compensation rose

$11,700 relative to private employee compensation. Local government employee compensation rose

$4,800 relative to private employee compensation (all data is adjusted for ination).

Comparing Private Sector and Government Jobs

There is no reason for government employee compensation to differ from private employee

compensation for comparable jobs. However, differences between private and government

employment make it difcult to compare employee compensation for equivalent positions. Studies

have reported substantially different results, even using purportedly equivalent jobs.

The ultimate test is the value employees themselves place on the job. The value of a job is indicated

by more than wages or even total compensation. A job can be more or less attractive based upon

Between

1993 and

2008, overall

full-time

equivalent

state employeecompensation

rose $11,700

relative

to private

employee

compensation.


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other characteristics, such as job security, paid time off, responsibilities and eventual retirement

income. The value of a job and the attractiveness to the employee may be most effectively evaluated

using relative turnover rates (voluntary separations) between comparable jobs in the government and

private sectors. The employee turnover rate at the state level is comparatively low, at approximately

one-quarter the private sector rate, which could indicate overall that employee compensation

is higher than appropriate. Equity between the government and private sectors requires that

comparable jobs be equally attractive (have the same market value), including both monetary andnon-monetary factors.

Career Compensation:To circumvent the difculties in categorizing jobs, this analysis uses a

comparablejob analysis, which assumes that three employees of equal education and skills begin

working for the state, a local government and a private company on the sameday in 1993, in jobs ofthe sameresponsibility at the same wage or salary level. Over the course of the three careers, wages,salaries and benets are adjusted based upon trend differences between the sectors:

Over a 40-year career, the private sector worker would receive compensation of $2,246,000.

The state employee would receive $2,890,000 which is $644,000 more than the private

employee. The local government employee would receive $2,580,000, which is $334,000 more

than the private employee.

Over a 35-year career, the private employee would receive compensation of $1,973,000. The

state employee would receive $2,457,000, which is $484,000 more than the private employee.

The local government employee would receive $2,236,000, which is $263,000 more than the

private employee.

Career Compensation Per Hour Worked:This analysis, however, understates the value of state

government employment because state workers receive more paid time off than private sector

workers. It is estimated that over a 40-year career, the average state worker would receive $210,000

more in compensation for time off than a private employee. Over a 35-year career, the state

government employee advantage is estimated at $169,000. For example, state workers would receive

approximately 440 more days of paid vacation days, personal days and holidays over a 35-year career.

Over a 40-year career, the same state worker would receive approximately 510 additional paid days

off when compared to the average employee in the private sector. The comparable private employee

would have to work 6.8 days to earn the same compensation as the comparable state employee earns

in ve work days (one week), and would need to work 6.6 days to earn the same compensation as the

average local government employee.

Additional Advantages of Government Employment: There are additional advantages of

government employment relative to private sector employment. These include superior job security,

superior sick time accrual, earlier retirement and higher retirement incomes. Further, in 2009, state

and local government employees took approximately one-third more paid sick days than private

sector employees at the national level (Illinois data was not available). Government employees haveeven more signicant advantages in having their compensation generally established administratively.

Additional advantages come through their political access to ofcials responsible for making

compensation decisions, rather than through the competitive conditions.

Conclusion

It is important to note that employees of the state of Illinois, its units of local government and its

private companies are overwhelmingly dedicated to their jobs and effective in their job performance.

Nonetheless, there is strong evidence that government employees are better compensated than

private employees in comparable jobs. The existing and expanding compensation gap between

Page 3 of 24

The

existing an

expanding

compensat

gap betwee

governmen

and privat

employees

unlikely tosustainabl

the long ru

especially

with the

economic

and scal

challengesfacing

Illinois.


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Page 4 of 24

government and private employees is unlikely to be sustainable in the long run, especially with the

economic and scal challenges facing Illinois.

There is a need to undertake reforms, such as moving from unsustainable dened-benet pensions

to dened-contribution retirement systems, to evolve toward parity between government and

private employee compensation. These reforms should take into full consideration monetary and

non-monetary factors. Because turnover rates may serve as the best indicator of job attractiveness,policymakers should seek to align compensation with the private sector. With that, Illinois public

sector turnover rates should converge with those in the private sector.

In preparing this report, difculties in state employee compensation reporting were evident, which

make it exceedingly difcult to obtain comprehensive data. There appears to be no comprehensive

state personnel report detailing employee wages, salaries, employer-paid benets and the number

of employees. For example, it was reported that there is no central source for sick day usage

information. The lack of comprehensive and readily available data on state employment is a serious

problem. A comprehensive state and local government employee compensation reporting system

should be implemented without delay so that elected ofcials, administrators and taxpayers have

access to accurate and reliable data. The State Comptroller could issue these reports.

There is

a need to

undertake

reforms,

such as

moving fromunsustainable

dened-benet

pensions

to dened-

contribution

retirement

systems, toevolve toward

parity between

government

and private

employee

compensation.


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Page 5 of 24

In 2008,

governmen

employee

wages andbenets

accounted f

one-third o

Illinois sta

governmen

and two-

thirds ofIllinois loc

governmen

operations

spending.

Ouf

Introduction

Governments in Illinois face serious scal challenges perhaps the most serious since the Great

Depression.

Employee compensation is the largest element in government budgets. In 2008, government

employee wages and benets accounted for one-third of Illinois state government and two-thirds of

Illinois local government operations spending.1 Further, there is massive under-funding of pension

and retiree health care programs, which could indicate that government employee compensation is

higher than reported.

Private sector workers, whose taxes fund governments and government employee compensation,

have experienced stagnating or even declining real incomes and higher unemployment. Private

sector employment has become comparatively less secure as business competition has increased,

while government employment has remained comparatively secure. At the same time, government

employee compensation has risen substantially and appears to generally exceed that of private sector

employees with similar duties and education.

This analysis compares state and local government employee compensation in Illinois with private

sector employee compensation in the state.

AverageEmployeeCompensationinIllinois

The optimal resource for obtaining state government employee compensation data would have been

Illinois-based governmental resources. Unfortunately, Freedom of Information requests for such

information yielded no evidence of an overall state employee compensation reporting system an

issue that is discussed in more detail in the reports conclusion. Of course, it would have been a

daunting task to collect data on local government employee compensation from the many units oflocal government throughout the state. As a result, this report relies principally on national reporting

systems, administered through the U.S. Department of Commerces Bureau of the Census and

Bureau of Economic Analysis.2 The private employee compensation data is principally obtained

from the U.S. Department of Labors Bureau of Labor Statistics and the U.S. Department of

Commerces Bureau of Economic Analysis.

This analysis uses 2008 data.3 All data was normalized to reect full-time equivalent employees.4

Wages and Salaries: It is estimated that average state and local government full-time employee

wages and salaries in Illinois were higher than those in the private sector in 2008:5

ScGovernment and Private EmployeeCompensat ion in I l l inois


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Page 6 of 24

The average Illinoisan working in the private sector was paid $47,200 in wages and salaries.

The average state government worker was paid $54,900 in wages and salaries, which is 16

percent higher than the private employee average.

The average local government worker was paid $48,900 in wages and salaries, which is 4

percent higher than the private employee average.

Employer-Paid Benets:The gap between private and government employee benets in Illinois

was substantially greater than the wage differential. In 2008:6

The average Illinoisan working in the private sector received $9,300 in employer-paid benets.

The average state government worker received $14,600 in employer-paid benets, which is

more than 1.5 times that of the average private employee.

The average local government worker received $14,200 in employer-paid benets, which is

more than 1.5 times that of the average private employee.

Moreover, as is discussed later in this study, state government employee benets may be understated

because payments to pension and retiree pension programs have been less than required.

Total Compensation: As a result of their higher wages, salaries and benets, state and local

government workers in Illinois have higher overall compensation than private sector workers. In

2008 (Graphic 1 and 2, page 7):

The average private sector worker received $56,500 in total compensation.

The average state government worker received $69,500 in total compensation, which is 23

percent more than that of the average private sector worker.

The average local government worker received $63,100 in total compensation, which is 12

percent more than that of the average private sector employee.

Further, in the eight-month time frame between June 1, 2011, and Feb. 1, 2012, employees

represented by the American Federation of State, County and Municipal Employees (AFSCME) will

receive a combined 7.25 percent in cost of living wage increase (at the time of publication of this

report, a portion of this raise was under budgetary dispute). This is a higher average wage increase

than is likely in the private sector and could expand the state employee compensation advantage over

private employees even further.7

These nancial comparisons do not account for any variations in education or employmentconditions such as employee security, employer security, differing responsibilities, productivity levels

or the number of hours worked.

Compensation Per Hour Worked

The gap between state and private employee compensation is greater when compared based upon

hours of work. State workers receive more paid time off (vacation days, holidays and personal days)

than private sector workers. It is estimated that state employee compensation per hour worked is

28.8 percent more than that of private sector employees (Graphic 3, page 7).8 Detailed paid time off

data is not available for local government employees.

The average

state

government

worker

received

$69,500n total

compensation,

which is 23

percent more

than that of

the average

private sectorworker.


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$0

$5

$10

$15

$20

$25

$30

$35

$40

Private State

Assumes 6

Years

Seniority

Graphic3

CompensationperHourWorked

State&PrivateEmployee

Page 7 of 24

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

Private State Local

Benefits Wages

Bureau of

Economic

Analysis data

Annual Compensation

Graphic1

2008Wages&Benefits:Illinois

Full-TimeEquivalentEmployees

Graphic2

EstimatedAnnualCompensationperFull-Time

EquivalentEmployee:2008

Private

Employees

State

Employees

Local

Government

Employees

Wages & Salaries $47,200 $54,900 $48,900

Employer-Paid Benets $9,300 $14,600 $14,200

Total Compensation $56,500 $69,500 $63,100

Estimated from Bureau of the Census, Bureau of Labor Statistics and Bureau of Economic

Analysis Data.

Does not include adjustment for underpaid pension and retiree health care obligations.

$29.81

$38.40

$9,300

$47,200

$14,600

$54,900

$14,200

$48,900


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Page 8 of 24

Likely Understatement of Government Employee Benets

The nationally reported data, however, appears to understate the difference between state and

private employee compensation because of the sizeable amounts by which the state has underfunded

employee pension and retiree health care programs.

A report by the Pew Charitable Trusts indicates that Illinois has the largest unfunded pension ratioof any state, at only 51 percent of full funding.9 In 2009, the state paid approximately $1.2 billion

less than the amount required to fully fund the four separate state employee pension programs for

the year.10 Pew further indicates that the state was 76 percent ($2.4 billion) short of funding retiree

health care (which is 99.9 percent underfunded) in 2009. Overall, state employee pension funds were

found to be underfunded by $62 billion, while retiree health care was underfunded by $44 billion.11

These payment shortfalls represent employee compensation (benets) that should have been paid,

but were not. Thus, employee benets have been understated in any year the state has failed to pay

in full. The amount of underpayment allocable to any year is unknown. It would appear that any

reporting in recent years would have understated the actual employee compensation.

There is a similar problem of unknown dimensions in local government as well. Some of the stateslargest units of government have been underfunding retiree benets as well, such as the city of

Chicago and Cook County.12

Related Interest Costs:There are additional costs to the taxpayers that result from the states failureto meet its pension and retiree health care obligations. The state is required to pay interest on the

amount of its retirement underfunding, which amounted to nearly $700 million in 2009.13 Moreover,

because the state payments were short in 2009 by $900 million, the net pension obligation rose

approximately 10 percent. This means that the interest on the unfunded obligation (net pension

obligation) could be even higher for 2010.14

In addition, the state has borrowed to make payments to the retirement funds, in an attempt to

reduce the underfunding. There have been recent bond issues of $10 billion (2003), $3.5 billion

(2009) and $3.7 billion (2011) principally to pay pension liabilities. The interest on this borrowing

adds additional costs that would not be incurred if the state kept its retirement fund contributions

up to date. The problem also extends to units of local government, though the extent cannot be

determined. For example, the Chicago Transit Authority issued $2.3 billion in revenue bonds in 2008

for the principal purpose of paying down its previous underpayments to pension and retiree health

care funds.15

It is important to recognize that these excess interest payments are not inherently issues of

government employee compensation or the result of negotiations between the state and local

government employee unions. They are a consequence of the states nancial management

difculties.

There are also instances of failure by private corporations to fully fund their pension programs.

However, because dened benet pension programs are relatively rare in the private sector (unlike

government), these amounts are not likely to be large in relation to total private sector payrolls.

EmployeeCompensationTrends

Illinois government employee compensation has been outpacing that of private employees over the

last 15 years for which data is available. In fact, Illinois private sector employees have experienced

declining wages and salaries, while state and local government wages and salaries have increased

(ination adjusted).16

Illinois

government

employee

compensation

has been

outpacingthat of

private

employees

over the last

15 years.


11/26

Page 9 of 24

From 1993 to 2008:

Private sector employee wages and salaries declined 1.6 percent.17 State government wages and

salaries increased 12.6 percent, while local government employee wages and salaries increased

2.4 percent (Graphic 4, page 10.18

Private sector employer-paid benets declined 5.2 percent.

19

State government employer-paidbenets increased 41.1 percent while local government employer-paid benets increased 19.3

percent (Graphic 5, page 10).20

The combined result is that private sector employee compensation declined 2.3 percent. State

government employee compensation rose 17.6 percent, while local government employee

compensation rose 5.8 percent (Graphic 6, page 10).

Between 1993 and 2008, overall, full-time equivalent state employee compensation rose $11,700

relative to private employee compensation. Local government employee compensation rose $4,800

relative to private employee compensation (all data is adjusted for ination).21

GovernmentandPrivateEmployee

CompensationComparability

Government employee compensation should be the same as private employee compensation for

comparable jobs. However, differences between private and government employment make it

difcult to compare employee compensation for equivalent positions. Comparability involves much

more than education levels, for example. Apparent responsibility levels are difcult to judge. In

the end, comparability may be nearly impossible to determine objectively. There are, for example,

differences in education levels, paid time off, job security, responsibilities and other factors.

Moreover, studies have shown substantially different results in purportedly comparable jobs. For

example:

The Center for State and Local Government Excellence found employee compensation in the

state and local government sector to be less thanthat of employees in comparable jobs in theprivate sector.22

The state of California found that state employee compensation was generallyabovethat ofcomparable jobs in the private sector. The report also found that state employee compensation

was generally less than that of other public sector employees in the state (such as local

government employees),23 implying that local government employee compensation is also

higher than in the private sector.

The ultimate test is the value employees themselves place on the job. The value of a job is indicatedby more than its wage rate or even its relative compensation. A multiplicity of other factors, such

as employment security, paid time off, responsibilities and eventual retirement income enter into

the equation. The value of a job is perhaps best illustrated by relative turnover rates, as indicated by

voluntary separation (resignations).

If the employee turnover rate is higher for comparable jobs in government compared to the

private sector, it may be an indication that the employer is unable to retain employees because

they perceive that better employment opportunities are available elsewhere. This could be an

indicator of lower than appropriate employee compensation at the government job.

From 199

to 2008

private se

employeewages and

salaries

declined 1

percent. S

governmen

wages and

salariesincreased

12.6 perc


12/26


13/26

Page 11 of 24

If the employee turnover rate is lower for comparable jobs in government than in the private

sector, it may be an indication that the employer can retain employees longer because they

perceive that their employment conditions are better than available elsewhere. This could be an

indicator of higher than appropriate employee compensation at the government job.

According to the Illinois Department of Central Management Services, state employees had a

voluntaryseparation rate24

that is approximately one-fourth that of the national private sector rate.

25

This would appear to be evidence that state jobs are more valuable than jobs in the private sector

and could be an indication that compensation rates are higher than appropriate.26

Career Comparison

To circumvent the difculties in categorizing jobs, this analysis uses a comparablejob analysis. The

analysis assumes job comparability and applies existing trends over a career of 35 or 40 years. Three

comparableemployees, based upon education and skills, are assumed to begin working for the state,a local government and a private company on the sameday in 1993, at the same wage or salary level,

adjusted for differences in benets and annual percentage changes in compensation.27 The starting

pay in 1993 is the average private sector wage or salary.28

40-Year Analysis

Over a 40-year career (Graphic 7, page 12), in wages and salaries:

The average comparable private employee would be paid $1,877,000.

The average comparable state government employee would be paid $2,246,000, or $369,000

(20 percent) more than the comparable private employee.

The average local government employee would be paid $1,979,000, or $102,000 (5 percent)

more than the comparable private employee.

The differences in employer-paid benets would be much larger:

The average comparable private employee would receive $369,000 in employer-paid benets.

The average comparable state government employee would receive $644,000 in employer-paid

benets, or $275,000 (75 percent) more than the comparable private employee.

The average local government employee would receive $601,000 in employer-paid benets, or

$232,000 (63 percent) more than the comparable private employee.

Over 40 years, the total compensation (wages, salaries and employer-paid benets) would be asfollows:

The average comparable private employee total compensation would be $2,246,000.

The average comparable state government employee total compensation would be $2,890,000,

or $644,000 (29 percent) more than the comparable private employee.

The average local government employee total compensation would be $2,580,000, or $334,000

(15 percent) more than the comparable private employee.

Over a 4

year caree

the averag

comparabstate

governmen

employee

would rec

$644,00

employer-p

benets, o$275,00

(75 perce

more than

comparab

private

employee.


14/26

Page 12 of 24

35-Year Analysis

Over a 35-year career (Graphic 7), in wages and salaries:

The average comparable private employee would be paid $1,647,000.

The average comparable state government employee would be paid $1,925,000, or $278,000(17 percent) more than the comparable private employee.

The average local government employee would be paid $1,725,000, or $78,000 (5 percent)

more than the comparable private employee (Graphic 8, page 14).

Graphic7

CumulativeEmployeeCompensation-ComparableJobs

EstimatedPrivateandStateGovernment:Career

Years

Employed Private State LocalGovernment Employee Advantage

State Local

WAGES & SALARIES

5 $239,000 $244,000 $240,000 $5,000 $1,000

10 $477,000 $497,000 $483,000 $20,000 $6,000

15 $714,000 $760,000 $727,000 $46,000 $13,000

20 $949,000 $1,035,000 $974,000 $86,000 $25,000

25 $1,183,000 $1,320,000 $1,222,000 $137,000 $39,000

30 $1,415,000 $1,616,000 $1,472,000 $201,000 $57,000

35 $1,647,000 $1,925,000 $1,725,000 $278,000 $78,000

40 $1,877,000 $2,246,000 $1,979,000 $369,000 $102,000

BENEFITS

5 $49,000 $53,000 $61,000 $4,000 $12,000

10 $97,000 $113,000 $126,000 $16,000 $29,000

15 $145,000 $181,000 $195,000 $36,000 $50,000

20 $191,000 $255,000 $268,000 $64,000 $77,000

25 $237,000 $339,000 $345,000 $102,000 $108,000

30 $281,000 $431,000 $426,000 $150,000 $145,000

35 $326,000 $532,000 $511,000 $206,000 $185,000

40 $369,000 $644,000 $601,000 $275,000 $232,000

TOTAL COMPENSATION

5 $288,000 $297,000 $301,000 $9,000 $13,000

10 $574,000 $610,000 $609,000 $36,000 $35,000

15 $859,000 $941,000 $922,000 $82,000 $63,000

20 $1,140,000 $1,290,000 $1,242,000 $150,000 $102,000

25 $1,420,000 $1,659,000 $1,567,000 $239,000 $147,000

30 $1,696,000 $2,047,000 $1,898,000 $351,000 $202,000

35 $1,973,000 $2,457,000 $2,236,000 $484,000 $263,000

40 $2,246,000 $2,890,000 $2,580,000 $644,000 $334,000

Assumes starting salary at 1993 average private sector level (2008$).

Applies average annual salary and benet rate of change from 1993 to 2008 to 2008 to 2028.


15/26

Page 13 of 24

Over 35

years, the

average lo

governmenemployee

compensa

would be

$2,236,0

or $263,0

(13 perce

more thanthat of th

comparab

private

employee.

The differences in employer-paid benets would, again, be much larger:

The average comparable private employee would receive $326,000 in employer-paid benets.

The average comparable state government employee would receive $532,000 in employer-paid

benets, or $206,000 (63 percent) more than the comparable private employee.

The average local government employee would receive $511,000 in employer-paid benets, or

$185,000 (57 percent) more than the comparable private employee (Graphic 9, page 14).

Over 35 years, the total compensation (wages, salaries and employer-paid benets) would be as

follows:

The average comparable private employee total compensation would be $1,973,000.

The average comparable state government employee total compensation would be $2,457,000,

or $484,000 (25 percent) more than that of the comparable private employee.

The average local government employee total compensation would be $2,236,000, or $263,000(13 percent) more than that of the comparable private employee (Graphic 10, page 14).

Paid Time Off and Career Compensation Per Hour Worked

The comparable state government employee compensation advantage becomes larger when paid

time off is considered. Generally, government employees receive more paid vacation days, personal

days and holidays than private sector employees. For example, state of Illinois employees would

receive approximately 440 more paid vacation days, personal days and holidays over a 35-year career

and approximately 510 additional paid days over a 40-year career compared to the average employee

in the private sector (Graphic 11, page 15).29

40-Year Analysis: Based upon this information, it is estimated that state of Illinois employees

would receive the equivalent of $210,000 more in compensation for time not worked over a 40-

year career than a comparable private employee. Paid time off data was not available for local

government employees.

The comparable private employee would be paid $30 per hour worked over the 40 years. The

comparable state employee would be paid $40.90. The comparable private employee would have to

work 6.8 days to earn the same compensation as the comparable state employee earns in ve days.

35-Year Analysis: It is estimated that the comparable state of Illinois employee would receive the

equivalent of $169,000 more in compensation for time not worked over a 35-year career than the

comparable private employee.

The comparable private employee would be paid $30 per hour worked over the 35 years. The

comparable state employee would be paid $39.60. The comparable private employee would have to

work 6.6 days to earn the same compensation that the comparable state employee earns in ve days

(Graphic 12, page 15).


16/26

Page 14 of 24

Graphic9

Projected35-YearCareerBenefits

ComparableFull-TimeEquivalentEmployees

$0.0

$0.1

$0.2

$0.3

$0.4

$0.5

$0.6

Private State Local

1993-2028 In Millions

Graphic10

Projected35-YearCareerCompensation

ComparableFull-TimeEquivalentEmployee

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

$1.6

$1.8

$2.0

Private State Local

1993-2028 In Millions

Graphic8

Projected35-YearCareerWages

Full-TimeEquivalentEmployees

$1,647,000

$1,925,000

$1,725,000

$326,000

$532,000 $511,000

$1,973,000

$2,457,000$2,236,000


17/26

Non-MonetaryAdvantagesofGovernmentEmployment

The above analysis has documented quantiable advantages of government employment in largerannual wage, salary and benet increases, more substantial employer-paid benets and more paid

time off. There are, however, additional advantages to government employment that are not readily

converted into monetary equivalents.

Superior Job Security: Government employees have better job security than private employees.

This is best illustrated by the factors that so often lead to job losses in the private sector, such as

mergers, closings and the movement of jobs to other states and nations. Employees of the state of

Illinois can be sure that a merger with Indiana is not in the ofng. The state will not close and it will

not export its jobs to Alabama or India. Thus, there is greater employment securityin governmentbecause the governments will continue to exist while private companies can fail or be absorbed by

Page 15 of 24

In 2009, t

state employ

for whom

the IllinoisDepartmen

of Central

Manageme

Services

maintains

records had

a layoff aninvoluntary

separation

approxima

one-third t

of the nati

private sect

Graphic11

CumulativeCompensationforTimeOff

EstimatedPrivateandStateGovernmentEmployee:

Career

Years Private State State GovernmentEmployee Advantage

5 $21,000 $34,000 $13,000

10 $47,000 $76,000 $29,000

15 $76,000 $124,000 $47,000

20 $107,000 $177,000 $70,000

25 $138,000 $235,000 $97,000

30 $170,000 $301,000 $131,000

35 $201,000 $370,000 $168,000

40 $233,000 $443,000 $210,000

$0

$5

$10

$15

$20

$25

$30

$35

$40

Private State

1993-2028

Graphic12Projected35-YearHourlyCompensation

ComparableFull-TimeEquivalentEmployee

$30

$39.60


18/26

Page 16 of 24

other entities. Government employees also have greater employment security by virtue of employee

protections and grievance procedures that are generally not available in the private sector.30

In 2009, the state employees for whom the Illinois Department of Central Management Services

maintains records had a layoff and involuntary separation rate approximately one-third that of the

national private sector,31 which is an indicator of the superior compensation and employer security

in government.

Accrual and Payment of Sick Time: Illinois state workers accrue sick days from year to year,

though they are not paid for accrued sick days when they resign or retire.32 There are indications of

even more generous sick pay benets in some local governments. It has been reported that there is

paymentfor sick time accrual over multiple years, for example, in the cities of Evanston and Joliet.33However, private employees do not generally share the benet of sick day accrual beyond one year.

Earlier Retirement: State workers generally are able to retire earlier than private employees. This

advantage is likely to be largely removed for new employees as a result of the reforms adopted by

the state in 2010, when the full benet retirement age for new employees was raised from 55 to

67 years of age. However, the lower retirement age provisions remain in place for the overwhelming

majority of employees who were hired before the reforms were implemented.

Higher Retirement Incomes:A national report by the Pew Charitable Trusts indicated that

government employees have considerable advantage over private employees in retirement benets.

Only one-third of private retirees have pension programs, which is considerably less than the 82

percent among government retirees. The median annual pension among private retirees was less than

one half that of government retirees. Much of this advantage is due to the prevalence of the more

expensive dened benet pension plans in government (as opposed to the dened contribution

plans, such as 401(k)s, that are more routine in the private sector). Nationally, of the employees

with pension programs, only 20 percent of private sector retirees have dened benet retirement

programs, compared to 90 percent among government retirees.34

Sick Day Usage: Nationally, state and local government employees use approximately one-third

more sick days than private employees. In 2009, private sector employees were absent 3.1 percent

of the time, state government employees 4.2 percent and local government employees 4.0 percent.35

A response to a Freedom of Information request indicated that there is no overall data on sick day

usage in Illinois state government.

Administrative Determination of Employee Compensation: In the private sector, employee

compensation results from the operation of the competitive market. A rm that compensates its

employees at higher than competitive rates36 is likely, all things being equal, to see its market share

reduced and perhaps even fail. This is true regardless of whether the staff of the company has been

organized by a union.

In government, employee compensation is determined administratively. In the context of

compensation, government behaves like a monopoly and thus has no competition. Government

administrators and unions may compare their compensation packages to those of other jurisdictions;

however, that process seems likely to lead to higher compensation levels than would occur if there

was genuine competition. Some government agencies have sought to deal with this problem by using

competitive contracting, by which some services can be provided at competitive wages and benets

rates, which can lower costs.37

Political Inuence: Finally, government employees have an ultimate advantage over their private

counterparts in their access to the political system to seek better salaries and benets. This gives

Nationally,

state

and local

government

employees use

approximatelyone-third

more sick

days than

private

employees.


19/26

government employees virtual insulation from the market-based compensation determination that

necessarily applies in the private sector. Government employee unions make contributions to the

very elected ofcials who make the nal decisions on employment conditions. Nationally, three

large government employee labor unions (AFSCME, the National Education Association and

the American Federation of Teachers), along with the Service Employees International Union,

which has a large number of government employee members, contributed $130 million to political

campaigns between 1989 and 2009. Each of these unions was among the top 13 single contributorsand their overall contributions were divided between Democrats (96 percent), Republicans (2

percent) and others (2 percent).38

Moreover, government workers can provide considerable assistance (such as stafng phone banks

and walking precincts) to election campaigns of candidates they believe will be more sympathetic.

Because government employees represent a substantial share of the electorate, their efforts can

sway election results especially when there are low voter turnouts. All of this assists government

employee unions in lobbying elected ofcials, whose interests can, therefore, converge with those of

government employees. As a result of this and other factors, governments around the nation have

agreed to employee compensation packages that are not sustainable. They are not affordable, which

is demonstrated by the rampant underfunding of pension and retiree health care funds and the now-

pervasive budget crises.

This political advantage is not available to private employees or their unions. A communication to

a local elected ofcial will have virtually no impact on the management negotiating position of a

private company. Indeed, if political ofcials were to seek to interfere, the targeted business would

be encouraged by market conditions to either move from the jurisdiction or to direct its business

expansions to more business-friendly jurisdictions. Employees and their unions are not able to

serve the interests of management by making election campaign donations (because there are none)

or assisting them in elections (also because there are none). As a result, there is little possibility

of a convergence of interests between the management of the company and the unions in labor

negotiations that could result in a labor settlement that is not aligned with budget realities.

Conclusion

It is important to acknowledge that the contribution of public and private sector employees is critical

to making Illinois successful in an increasingly competitive economy. Nonetheless, there is strong

evidence that government employees are better compensated than private employees in comparable

jobs. These differences, as noted above, are principally the result of the dynamics of the two sectors,

including the relative lack of real-world competitive inuences in government employment and

the superior political access government employee organizations have to the elected ofcials who

manage units of government.

Government Employee Compensation: Unsustainable Trends

The existing and expanding compensation gap between government and private employees is

unlikely to be sustainable in the long run, especially with the economic and scal challenges facing

Illinois in both the government and the private sector. There is a need to undertake reforms to

evolve toward parity between government and private employee compensation, taking into full

consideration monetary and non-monetary factors, so that government employees are compensated

at no more than the rates determined in the market. The use of employee turnover rate

comparability should be used to measure the success of these reforms.

Page 17 of 24

There is st

evidence th

governmen

employeesare better

compensate

than priva

employees i

comparabl

jobs.


20/26

Page 18 of 24

Comprehensive Employee Compensation Reports

We appreciate the efforts of the state employees who were so helpful in providing information that

made it possible to produce this report. They appear to have faced often-insurmountable difculties,

however, in providing the comprehensive information that we sought on employee compensation.

There appears to be no comprehensive state personnel report detailing employee wages, salaries,employer-paid benets and overall number of employees. Freedom of Information requests had to

be led with multiple state ofces, and data often was incomplete or inconsistent. Some information

was simply not available. For example, it was reported that there is no central source for sick day

usage information.

The lack of comprehensive and readily available data on state employment is a serious problem. The

governor, other executive ofcers, legislators and the public should have access to this information.

Further, without such readily available information, there are necessarily serious roadblocks to

managing the huge enterprise that is the state of Illinois.

If the state of Illinois were a private corporation, it would rank approximately 100th in the world in

annual revenue, and any of those companies would be likely able to quickly provide detailed andcomprehensive employee compensation information to those requiring it.

The rst step in identifying options for achieving fairness in government worker compensation is to

understand its present cost. As noted above, such information does not appear to be readily available

through present reporting systems. A comprehensive state employee compensation reporting system

should be implemented without delay. Similar-sized Pennsylvania provides a valuable example. Its

annual Governors Workforce Report39provides much of the necessary management information andcould be used as a model for Illinois.

An Illinois State Government Workforce Report:A comprehensive, independent annual

employee compensation report could be prepared by the State Comptroller. This report should

include at least the following information, both at the aggregate level and for broad employee

classications:

Annual and per work hour wages and salaries

Annual and per work hour employer-paid benets

Annual and per work hour compensation

Average full-time, part-time and full-time equivalent employees

Average employee turnover rates

Average annual sick days used per full-time employee

Allocation of pension fund and retiree health care fund payments based upon liability in

addition to actual disbursements

In addition, an alternate table of total employee benets and employee compensation should also be

shown, indicating pension fund and retiree health care fund obligations (rather than disbursements).

This table would include wages and salaries (from above) and employee benets (including pension

and retiree health care obligations summed to indicate total employee compensation).

f the state

f Illinois

were a private

orporation,

t would rank

pproximately00th in

he world

n annual

evenue, and

ny of those

ompanies

would be likelyble to quickly

rovide

etailed and

omprehensive

mployee

ompensation

nformation tohose requiring

t.


21/26

Page 19 of 24

Other employee compensation reports (such as the Pennsylvania Governors Workforce Report)shouldbe reviewed to identify additional issues to be included.

An Illinois Local Government Workforce Report: Perhaps just as importantly, there should be an

annual, centralized personnel report containing information for all units of government in the state.

The state and its taxpayers have a legitimate interest in local government employee compensation,

not only because all governments in the state are authorized by the state, but also because the stateprovides substantial funding to units of local government. If local governments can become more

efcient, there will be less demand for funding from Springeld.

Already, the states local jurisdictions make annual nancial reports to the State Comptroller. These

reports could be expanded to include personnel issues, with data made available on the Internet

(as is the case now with nancial information). The local government workforce report should be

modeled on the proposed Illinois State Government Workforce Report.

There shou

be an annu

centralized

personnelreport

containing

informatio

for all unit

governmen

the state.


22/26

Page 20 of 24

Appendix:DetailedCompensationEstimates

Table A-1 provides estimated average state government employee compensation by major function.40 Compensation exceeds

$75,000 in nine of the 17 listed functions (judicial and legal, police ofcers, higher education instructional, other government

administration, highways, health, water transport and terminals, social insurance administration and nancial administration).

The lowest-paid state government functions were higher education (non-instructional employees) at $49,500 and natural

resources at $59,200. The largest functions were higher education instruction employees, with 13 percent of employment(average compensation $89,200) and other higher education employees, with 31 percent of employment.

Table A-2 provides estimated average local government employee compensation by major function.41 Compensation exceeds

$75,000 in eight of the 30 listed functions (reghters, higher education instructional employees, sewerage, electric power,

air transportation, transit, solid waste management and water supply42). The lowest-paid local government functions were

other elementary and secondary employees at $39,700 and gas supply at $38,800. The functions with the largest number of

employees were elementary and secondary education instruction, with 39 percent of employment (average compensation

$66,500) and other elementary and secondary education, with 16 percent of employment.

Table A-3 provides estimated private sector employee compensation data for major industries in Illinois.43 In seven of the 19

private industries, the average compensation is estimated at more than $75,000 (utilities, management of companies, wholesale

trade, nance and insurance, information, manufacturing and professional, scientic and technical). The lowest-compensated

industries are real estate and forestry, shing and related activities. Both of these industries have average compensation of less

than $20,000 annually. The largest industries are retail trade, with 11 percent of employment (average compensation $33,400)

and health care and social assistance with 12 percent of employment (average compensation: $52,800).

TableA-1

EstimatedStateGovernmentEmployeeAnnualCompensationbyFunction:2008,

RankedbyWages&SalariesperFull-TimeEquivalentEmployees

Rank FunctionShare of State

Employees

Wages &

Salaries

Exhibit:

Estimated Total Compensa-

tion (Including Benets)

1 Judicial and Legal 2.0% $95,503 $120,885

2 Police Ofcers Only 1.8% $77,610 $98,236

3 Higher Education Instructional Employees 13.2% $70,447 $89,169

4 Other Government Administration 1.9% $64,067 $81,094

5 Highways 5.2% $63,247 $80,056

6 Health 2.0% $61,799 $78,223

7 Water Transport and Terminals 0.1% $60,939 $77,135

8 Social Insurance Administration 1.6% $59,950 $75,883

9 Financial Administration 4.2% $59,580 $75,414

10 Corrections 9.4% $58,299 $73,793

11 Other Police Employees 1.3% $58,187 $73,651

12 Public Welfare 7.8% $57,897 $73,284

13 Other Education 1.6% $56,561 $71,593

14 Hospitals 8.5% $55,665 $70,459

15 Parks and Recreation 0.4% $50,958 $64,501

16 Natural Resources 3.0% $46,738 $59,160

17 Higher Ed Other Employees 30.9% $39,142 $49,545

Other Employees 5.3% $57,169 $72,363

All Employees 100.0% $54,873 $69,456

Source: Wages and Salaries: U.S. Census Bureau, Employer paid benets estimated from Bureau of Economic Analysis data. Full-Time Equiva-

lent Employees, All Functions with Employees Reported.

Employee benets ratio assumed to be the same for all functions.

Excludes adjustment for underpayment of pension and retiree health care obligations (Employee benets).


23/26

TableA-2

EstimatedLocalGovernmentEmployeeAnnualCompensationbyFunction:

2008,RankedbyWages&SalariesperFull-TimeEquivalentEmployees

Rank Function

Share

of Local

Govern-ment

Employ-

ees

Wages &Salaries

Exhibit: Estimated

Total Compensation(Including Benets)

1 Fireghters Only 3.2% $72,069 $92,966

2 Higher Education Instructional Employees 1.6% $70,875 $91,426

3 Sewerage 1.1% $65,091 $83,964

4 Electric Power 0.2% $62,617 $80,773

5 Air Transportation 0.4% $62,506 $80,629

6 Transit 3.1% $61,116 $78,837

7 Solid Waste Management 0.9% $60,489 $78,028

8 Water Supply 1.1% $58,875 $75,946

9 Police Ofcers Only 6.6% $58,056 $74,890

10 Hospitals 2.2% $55,006 $70,95512 Elem & Sec Instructional Employees 39.0% $51,546 $66,492

13 Corrections 1.9% $50,694 $65,393

14 Natural Resources 0.4% $50,553 $65,211

15 Housing and Community Development 0.7% $50,032 $64,539

16 Financial Administration 1.6% $49,834 $64,284

17 Other Government Administration 1.8% $49,822 $64,268

18 Highways 2.3% $49,530 $63,891

19 Judicial and Legal 2.6% $49,370 $63,685

21 Health 1.5% $47,310 $61,027

22 Other Fire Employees 0.2% $45,497 $58,690

23 Higher Ed Other Employees 2.8% $42,445 $54,752

24 Other Police Employees 1.7% $41,498 $53,530

25 Parks and Recreation 3.0% $41,432 $53,44626 Water Transport and Terminals 0.0% $38,555 $49,734

27 Local Libraries 1.8% $35,293 $45,526

28 Public Welfare 1.2% $33,988 $43,843

29 Elem & Sec Other Employees 15.9% $30,789 $39,716

30 Gas Supply 0.0% $30,087 $38,811

Other Employees 1.3% $52,758 $68,056

All Employees 100.0% $48,915 $63,098

Source: Wages and Salaries: U.S. Census Bureau, Employer paid benets estimated from Bureau of Economic Analysis data. Full-Time

Equivalent Employees, All Functions with Employees Reported.

Employee benets ratio assumed to be the same for all functions.

Excludes adjustment for underpayment of pension and retiree health care obligations (Employee benets).

Page 21 of 24


24/26

Page 22 of 24

TableA-3

EstimatedPrivateSectorEmployeeAverageAnnualCompensationbyIndustry:

2008,RankedbyWages&SalariesperFull-TimeEquivalentEmployees

Rank IndustryShare of Private

EmployeesWages &

Salaries

Exhibit: Estimated Total

Compensation (Includ-

ing Benets)

1 Utilities 0.4% $118,420 $159,145

2 Management of companies and enterprises 1.5% $126,688 $152,887

3 Wholesale trade 5.0% $77,188 $89,722

4 Finance and insurance 7.1% $75,740 $89,222

5 Information 2.0% $70,577 $85,834

6 Manufacturing 10.2% $67,548 $85,304

7 Professional, scientic, and technical services 8.1% $67,948 $78,441

8 Construction 6.0% $49,323 $58,871

9 Transportation and warehousing 4.7% $44,961 $56,306

10 Health care and social assistance 12.1% $43,643 $52,784

11 Educational services 2.7% $38,384 $45,547

12 Mining 0.3% $33,539 $40,284

13 Administrative and waste services 7.7% $31,567 $36,941

14 Retail trade 11.2% $27,479 $33,379

15 Other services, except public administration 6.6% $28,562 $33,325

16 Arts, entertainment, and recreation 2.3% $22,436 $25,946

17 Accommodation and food services 7.2% $21,899 $25,421

18 Real estate and rental and leasing 4.7% $16,379 $18,820

19 Forestry, shing, and related activities 0.2% $12,547 $15,965

All Employees 100.0% $47,154 $56,518

Full-Time Equivalent Employees, All Functions with Employees Reported.

Source: Wages and Salaries: U.S. Census Bureau, Employer paid benets estimated from Bureau of Economic Analysis data.


25/26

Endnotes

1 Estimated from U.S. Census Bureau governments database (2008), adjusted to include estimated additional cost of employer paid benets.

2 Both agencies are part of the U.S. Department of Commerce.

3 There is no single report that provides complete data on either state or local government employee compensation in Illinois. Generally, exceptwhere otherwise noted, it was therefore necessary to rely on national reports, which was also the case for private employee compensation.

4 Assumes a 40-hour workweek. Unless otherwise indicated, the term employee means full-time equivalent employee when used in this

report.

5 Estimated from U.S. Census Bureau Government Employment and Payroll data and Bureau of Economic Analysis Regional EconomicAccounts.

6 Estimated from Bureau of Economic Analysis Regional Economic Accounts.

7 The appendix provides private employee compensation data by industry, along with state and local government employee compensation databy function.

8 Six years seniority equals average state government employee tenure at the national level. Data from the Bureau of Labor Statistics (http://

www.bls.gov/news.release/tenure.t05.htm). We were unable to obtain average tenure data from the state of Illinois.

9 Data derived from Pew Center on the States: The Widening Gap: The Great Recessions Impact on State Pension and Retiree Health Care

Costs (2011), http://www.pewcenteronthestates.org/uploadedFiles/Pew_pensions_retiree_benets.pdf.

10 Excludes Teachers Retirement System (which is principally a local government employee pension that is a state responsibility).

11 Data derived from Pew Center on the States: The Widening Gap: The Great Recessions Impact on State Pension and Retiree Health

Care Costs (2011), http://www.pewcenteronthestates.org/uploadedFiles/Pew_pensions_retiree_benets.pdf.

12 Analysis of Comprehensive Annual Financial Reports of Cook County and the City of Chicago.

13 State of Illinois, Comprehensive Annual Financial Report: 2009.

14 The Teachers Retirement System, which covers local school district employees, is similarly underfunded. The state paid $940 million ininterest on the net pension obligation in 2009, though underpaid the annual pension cost by more than $875 million. As a result, the 2010interest payment is likely to exceed $1 billion.

15 Chicago Transit Authority, Comprehensive Annual Financial Report: 2009.

16 Unless otherwise noted, all nancial data is in 2008$.

17 Estimated from Bureau of Labor Statistics data.

18 Estimated from U.S. Census Bureau data.

19 Estimated from Bureau of Labor Statistics data.

20 Estimated from Bureau of Economic Analysis data.

21 The compensation increases do not include pension and retiree health care underpayments, which could increase employee compensation.

22 Center for State and Local Government Excellence, Out of Balance: Comparing Public and Private Sector CompensationOver 20 Years, 2010, http://www.slge.org/index.asp?Type=B_BASIC&SEC={22748FDE-C3B8-4E10-83D0-

959386E5C1A4}&DE={BD1EB9E6-79DA-42C7-A47E-5D4FA1280C0B}.

23 Department of Personnel Administration, State of California, Total Compensation Survey,2006 (http://www.dpa.ca.gov/tcs2006/

key-ndings.htm).

24 A Pew Center for the States report (Government Performance Project: Grading the States: Illinois, 2008, http://www.

pewcenteronthestates.org/uploadedFiles/PEW_WebGuides_IL.pdf ) indicated that Illinois had a lower than average employee turnover rate.

Page 23 of 24


26/26

Page 24 of 24

25 Bureau of Labor Statistics (http://www.bls.gov/news.release/archives/jolts_03092010.htm). Illinois information obtained through a

Freedom of Information request.

26 This report does not conclude that all state and local government employees receive higher compensation than they would receive in

comparable jobs in the private sector. However, the evidence is strong that higher government compensation is more often than not the case.

27 This projection is based upon the continuation of past trends. Should those trends not continue, materially different results could occur.

28 The comparable employee analysis does not include any allocation for underfunded annual pension and retiree health benets.

29 Calculated from Bureau of Labor Statistics and State of Illinois Personnel Rules information. Private sector data is for the nation.

Illinois data is not available.

30 These provisions would be likely to reduce job growth in the private sector by making businesses less competitive, both within the state and

internationally. Sectors where similar provisions have been available, such as heavy manufacturing, have generally declined in recent decades.

31 Bureau of Labor Statistics (http://www.bls.gov/news.release/archives/jolts_03092010.htm). Illinois information obtained through aFreedom of Information request.

32 From information provided in response to a Freedom of Information request.

33 Chicago Breaking News Center, Tribune Watchdog: Retirement Perks Cost Towns Millions, Sept 17, 2010, http://www.chicagobreakingnews.com/2010/09/tribune-watchdog-retirement-perks-cost-towns-millions.html.

34 Susan Urahn, Promises with a Price: Public Sector Employment Benets, Pew Foundation Center for the States, http://www.pewtrusts.

org/uploadedFiles/wwwpewtrustsorg/Reports/State_policy/pension_report.pdf.

35 Bureau of Labor Statistics, Household Data: Annual Averages, ftp://ftp.bls.gov/pub/special.requests/lf/aat47.txt.

36 Overpaying for other factors of production could have the same consequences.

37 See, for example, E. S. Savas, Privatization in the City: Successes, Failures, Lessons (2005).

38 Calculated from data at Open Secrets, http://www.opensecrets.org/orgs/list.php.

39 State of Pennsylvania, Governors Workforce Report: 2010, http://www.portal.state.pa.us/portal/server.pt/gateway/PTARGS_0_2_17646_2034_282252_43/http;/pubcontent.state.pa.us/publishedcontent/publish/cop_general_government_operations/

oa/oa_portal/hrm/bsppp/policy_and_program_planning/p_pp_library/gawfr_les/gawfr_2010_nal.pdf.

40 Wages from U.S. Census Bureau data. Benets from the Bureau of Economic Analysis. All functions are assumed to have the same

benet to wage ratio.

41 Wages from U.S. Census Bureau data. Benets from the Bureau of Economic Analysis. All functions are assumed to have the samebenet to wage ratio.

42 The high transit compensation ($79,000) is counter to the perception that government employees are better educated than their peers in theprivate sector and is curiously high, for example, in comparison with university instructional personnel, who tend to be highly educated.

43 Data from the Bureau of Economic Analysis. Benets are for each business classication.

Documents

Out of Sync: Government and Private Employee Compensation in Illinois