Date: 2|16|2011
What Public Sector Benefits are Costing You
February 16, 2011-Today the legislator is set to vote on Gov. Walker’s controversial budget repair bill. A feature of the bill is the changes that will occur for individuals in unions and receiving public sector benefits. Protests have raged all week in Madison as these public sector employees and unions try and defend and retain the status quo. But what is the status quo costing you, the average Wisconsin taxpayer? Here are some startling statistics:
- In 2001 taxpayers contributed $423 million dollars to state employee health insurance premiums, while in 2010 taxpayers contributed more than $1 billion dollars. In 2010, state employees paid $64 million toward their health insurance, or about 5.6% of the total cost. (ETF Health Care Analysis)
- From 2001 to 2010 taxpayers spent more than $8 billion dollars on state employee health care coverage—over the same period of time state employees contributed about $398 million. (ETF Health Care Analysis)
- Public employers contributed almost $1.37 billion to the state’s pension fund in 2009, while employees contributed about $8 million, or about 0.6%. (LFB paper 84 Wisconsin Retirement System, Table 28)
- From 2000 to 2009 taxpayers spent about $12.6 billion on public employee pensions, during the same period public employees contributed $55.4 million. (LFB paper 84 Wisconsin Retirement System, Table 28)
- When looking at state operations, state employees account for about 60% of taxpayer cost—77% of state operations for the UW are employees, 70% for corrections, 63% for health services. (State Budget Office Memo 2-9-11)
- Wisconsin taxpayers currently make nearly a 100% payment for the employee portion of the public sector pension contribution. Illinois and Indiana taxpayers contribute the entire employee portion as well, Iowa, Michigan, Minnesota and Ohio pay 0% of the employee contribution. (State Budget Office Memo 2-9-11)
- Public employees in Wisconsin are vested in the retirement system immediately, while in Illinois it takes 8 years, 10 years in Indiana, 4 years in Iowa, 10 years in Michigan, 3 years in Minnesota, and 5 years in Ohio. (State Budget Office Memo 2-9-11)
- Taxpayers spent $733 million of general purpose revenue on fringe benefits for state employees in fiscal year 2010. (State Budget Office Memo 2-9-11)
- Fringe benefits made up 25.6% of school district expenditures in 2008-09. (State Budget Office Memo 2-9-11)
- The average Wisconsin state employee compensation (salary and fringe benefits) in 2010-11 was $76,500. (Source: Fiscal Burea memo, 1/10/11)
- Employee salary and fringe benefits comprises more than 60% of state government GPR operations costs. (Source: State Budget Office)
- The average Wisconsin teacher compensation (salary and fringe benefits) in 2009-10 was $74,844. (Source: Department of Public Instruction website)
- Employee salary and fringe benefits comprise 75% of total school district expenditures statewide. (Source: State Budget Office)
- Wisconsin taxpayers pay over $1 billion per year for state government employee health insurance, more than double what was paid only 10 years ago. The employees themselves pay only 6% of that amount. (Source: Department of Employee Trust Funds)
- State and local governments combined paid more than $1.3 billion in contributions to the Wisconsin Retirement System in 2009. Employees contributed only 0.6% of this amount. (Source: Legislative Fiscal Bureau Informational Paper 84)
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Discussion | 1 Comment on "What Public Sector Benefits are Costing You"
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S Nelson said
Feb 17, 2011 at 11:17 PM
just how many people are you talking about???A few hundred or thousands??????Take just one teacher and then tell us how much is being spent. Your own opinion but not your own facts.