Two studies, one released by the Snyder Administration and another by a group of public employee unions give conflicting views in comparing public employee compensation to private sector compensation.
The Snyder Administration study, conducted by the Anderson Economic Group, shows that over the last decade, public sector workers have been compensated more than double private sectors workers. However, Governor Synder admitted that the report did not compare similar jobs in the public and private sectors, nor the educational attainment levels required for those jobs. The governor urged caution in the analysis of those numbers, agreeing it was not an apples-to-apples comparison.
However, a second study, released by Citizens for Accountability and Reform and the Economic Policy Institute found that after correcting for education levels, state workers have total compensation 9.67 percent less than their private sector counterparts.
The release of these studies comes on the heels of a consensus revenue estimate that found the state with a $1.8 billion deficit for the 2012 fiscal year and the upcoming release of the governor's proposed budget on February 14th. There remains little doubt that public employee compensation will remain a hot topic over the coming weeks and months.
Arnold Weinfeld is Director of Strategic Initiatives and federal affairs for the Michigan Municipal League. He can be reached at 517-908-0304 or by e-mail.
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