Wisconsin States & Federal Payroll - How bad is it?

As a nation we are talking about cutting the most fundamental state programs that server and protect our families and communities? But before we do, maybe someone should be looking into the "federal and not state" compensation to control deficit.

Since the world is using Wisconsin as a model.... so will I:
Wisconsin is fairly typical regarding the percentage of its citizens who work for the State or local government.
According to the US Dept of Commerce, Wisconsin had 214,506  "full time equivalent" state and local government employees in 2009. In July 2009, the estimated population of Wisconsin was 5,654,774. This is 3.79% of the population.

That means Wisconsin private workers pay for one out of every 30, and closer to one out of 20.
My numbers here do not include Wisconsin residents who work for the Federal Government or who work as contractors for any government. (Certainly there must be a few) It also does not include retired State workers who are now being supported by taxpayers.

And it is 1% or 55,371 of Wisconsin's federal employees and retirees that are the "pain in payrole"...

Salary impact on state budgets

State and local governments employ some 20 million people nationwide. Employee compensation costs represent the largest set of expenditures in every state budget.

Total state expenditures exceeded $2.2 trillion last year, of which wages and benefits amounted to $1.1 trillion.^[11] Consequently, budgeting decisions related to at least 50 percent of all state budgets are driven by the wage provisions of civil service contracts and funding obligations for state workers' health care and pension plans.

States' recent investment losses, which exceeded $800 billion in 2008, have worsened the budgetary pressures of pension obligations. For example, the state of Illinois was forced to borrow $3.5 billion to meet its pension obligations, thereby incurring tens of millions of dollars in additional debt service costs. Estimates peg the total unfunded liabilities of state and local pension plans between $1 trillion and $3 trillion.^[12]

Exhibit 1 from Pew Center for the States, The Trillion Dollar Gap: Underfunded state retirement systems and the roads to reform, February 2010.

How Does Federal Compensation Compare? 

• The average federal employee earns 57 percent greater cash pay and 85 percent greater total compensation than the average private-sector worker. 
• "But ... there are, in fact, some federal employees who are getting underpaid because the federal pay system doesn't reward experience or hard work as Federal workers receive automatic seniority-based raises irrespective of performance.  
• Number of Federal Workers Earning Over $150,000 Doubles Under in last few years
• The Presidents 2-year pay freeze for federal workers and suspension of the annual cost-of-living adjustment does not affect these raises.

During the "great recession, private sector job growth has seen a steep drop, while public sector jobs continue to increase. Government employment has increased by 590,000 while the private sector has lost nearly 8 million jobs since the beginning of the recession. After the passage of the Recovery Act, these trends have continued: the private sector has lost an additional 2.7 million jobs, or 2.5% of total private employment, while state and federal governments have continued to grow, adding an additional 400,000 jobs.^[3]

State and local government have reduced their workforce, mostly by not filling vacancies, by 1.3 percent in 2009. This amounted to 258,000 jobs.^[4] However, in that same time, federal jobs have increased by 3.4 percent, or 2.2 million jobs. 

Haase - These are discussions no one wants to have, I describe this as "the war within" during great recessions. Where we create conflict with the people we love and respect that are fundamental to serving and protecting our families and communities. But we are all in this together. The discussion has to be open and clearly defined in relaying message that little sacrifices have to be made for the few to avoid biblical hardship for us all. 

And lets not kid ourselves... It is The Unfunded Liabilities Problem (Or Lack Thereof In Wisconsin) that is the concerning me and my colleagues in gov roles the most.


Three years of property, job and corporate tax revenue drops are killing state and federal programs. The fiscal Tsunami is coming...

Wanna watch more of Wisconsin's budget?
The Journal Sentinel has made public employee salary information available.
There is also the WI Statistical Information Center - School Staff and Salary Data.