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Continued: Editorial: State salary caps should be repealed

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The average state employee

makes less than those in comparable positions in the private sector at comparably sized companies. Which means that people who are … read more employed by the State make less than people at 3M or Travelers or any large company. You cannot compare a salary for a person at a large organization such as the State of Minnesota to a small employer. Large sized companies' salaries are compared to other large sized organizations and not to smaller companies. Also, the benefits given to State employees has been chipped away at for years. State employees gave up pushing for higher salaries in order to get better benefits. Just look at the salaries that are posted for State government jobs in comparison to jobs at similar sized companies in the private sector. A large company has many employees which translates into more power to negotiate health insurance and other benefits. Remember, the State of Minnesota self-insures rather than giving money to the benefit providers for their benefits. This means the providers are only ADMINISTRATORS who process the claims. The State determines what the coverage is for its employees. They take the money that is deducted from employees' salaries for health coverage and put it in a fund to pay for the State employees' benefits. The State pays a portion for benefits like any other employer. Look at it this way; if you get a job at a large employer you will most likely get paid more than at a small employer. It is just the way it works. Small employers usually do not have the kind of benefits that a large employer has for its employees. The negotiating power of a large employer with many employees also is more powerful than for a small employer. This is how it is in private industry as well as government. Just because taxes pay for salaries mean that people have to work for much less than at a private employer. Private employers raise the price of their products to pay their employees so how can anyone complain more about government employees when their money actually pays for the employees of all companies they use. The basic difference is we all pay for the salaries of government employees including those people who are employed by the government. So people who work for the government also pay part of their own salary. Why should government employees get less than private sector employees when they do similar work? They shouldn't, but they usually do get less when you compare apples to apples. How would you like the people who purchase the product your company makes to tell you that you should get paid less because they think you are paid too much? People aren't worth less simply because they work for government. It is a myth that the average government employee makes more and has better benefits than people in similar positions at similarly sized organizations. Government employees are your friends and your family. They are not any worse or better than those who work in the private sector and deserve the same respect as other employees in the private sector. Look in the mirror. This means you.

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KEEPING UP

"This is not just about county and city managers. We need to pay more competitively to fill a number of jobs, including county attorneys and IT managers.''

Keith Carlson, executive director, Minnesota Inter-County Association.

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Ramsey County's top manager will soon leave his job for a similar position in California, where he'll get a $100,000 raise. And the No. 2 administrator of the state pension fund recently resigned to work for a county in Maryland, where he'll earn $100,000 more than his boss here was paid.

When it comes to executive pay in government, Minnesota stands out -- and not in a good way. Ours is the only state that ties top manager's salaries to what the governor earns. Consequently, most city, county and state administrators earn no more than about $144,000, in some cases tens of thousands dollars less than their counterparts across the nation.

The salary restriction affects local governments' ability to attract top talent. With an expected rash of baby boomer retirements and good managers leaving for better pay, officials need the flexibility to offer competitive salaries. That's why the state-imposed salary cap should be repealed.

For many years, law prohibited state employees from earning more than 95 percent of the governor's salary. But, in 1998, the Legislature passed an exemption for school superintendents after school boards had trouble filling top positions. Also, a handful of government agencies have received waivers to boost salaries.

In 2005, the Legislature took another positive step when it raised the cap to 110 percent of the governor's salary. And last week, a legislative panel approved a major pay increase for the state pension fund director, who manages $63 billion in assets. With such a heavy demand for exemptions and waivers, it is time to let go of the caps altogether.

Understandably, the average Minnesotan might question six-figure salaries for public officials. When personal and public budgets are so tight, why spend more on administrators?

During tough financial times, taxpayers should want the best, most experienced managers making difficult staff, program and budget choices. And citizens needn't fear that executive pay will balloon. The officials doing the hiring have built-in accountability: They have to balance their budgets and answer to taxpayers and voters.

And while we're talking salaries, it wouldn't hurt to revisit the paycheck on which the cap is based. Minnesota Gov. Tim Pawlenty earns slightly more than $120,000, about average for gubernatorial pay, according to the Council of State Governments. Topping the salary list is California at $206,000, although Arnold Schwarzenegger is one of three governors who don't accept a full salary. State CEOs in North and South Dakota and Wisconsin earn $92,500, $105,600 and $137,000 respectively. At $70,000, the governor of Maine makes the lowest salary.

Though most governors don't seek elected office for the money, and considerable perks come with the position, the same arguments for executive pay apply. Governors oversee thousands of people and billions of dollars. They deserve compensation that better reflects their level of responsibility.

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