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One way to cut state spending is to get the unions out of state government. According to a May 25, 2007 Detroit News editorial, state employees are paid on average 17% more than private sector employees. The average annual salary for state workers is $53,870. 71.5% are represented by unions (Civil Service Annual Workforce Report, page 1).

I would kick out the unions and start paying employees at the market rate - the lowest wage necessary to attract and keep qualified people. If it is found that people cannot be found to fill positions in a certain job classification, the pay will be increased until there are enough applicants. If there are a lot of applicants and no openings, pay will be decreased until there are just enough applicants to keep fully staffed.

I would also eliminate pensions for state employees, including administrators, legislators and judges.  Already retired employees would continue to receive their pensions (I am a retired state employee) and current vested employees would still get pensions based on the number of years worked as of the time the program is terminated, but new employees would get no pensions at all. The state would no longer contribute to tax-deferred savings plans such as 457s, either, and employee health insurance would not continue after retirement.

Taking away pension benefits might mean that we will have to increase employee pay in order to retain employees and attract new ones, but the net cost would certainly be less and the state would have no long term financial liability for former employees. Retirees would have Social Security and Medicare; anything beyond that would be their own responsibility.

While I believe state employees should be paid the market rate and should receive no benefits after they leave, I also believe they should be treated well:

• Employees should be treated with respect by their supervisors.

• Promotions should be based on merit alone.

• Grievances should be taken seriously and handled promptly and properly.

• Staffing levels should be high enough so that employees are not overloaded.

• Employees should be provided the tools and training needed to do a good job.

Drive the Unions out of Michigan
Unions in public schools
Union facts
More thoughts on unions
What economists think
What union sympathizers say