Professor Ballard Releases Report

State Employees Being Overpaid, is a Myth

David Corrie

State Employees Being Overpaid is an Urban Legend

Report finds State Employees have saved the State over $3.7 billion

On August 17, 2009 a press conference was held at the Capitol. Michigan State University Economics Professor Charles Ballard presented a White Paper entitled “The Retrenchment of the State Employee Workforce in Michigan.” Several state employees spoke on what sacrifices they have made over the years and how the cost cutting to balance budgets has hurt the citizens of Michigan.
 
Some of his findings include:

• From 2001 – 08 state employment has shrunk by 11,000 employees or 18.1%.
  • Real wage growth has been close to zero. Employees have taken furloughs and other banked leave time programs. And state employees pay more for retirement and health care benefits. From 2001-08 these changes saved the State approximately $3.7 billion.
• Salaries for college degree classifications falls behind those in the private sector. Ballard stated that “There’s a lot of myth, urban legend and folklore about what state employees get, if you correct for education level, their pay is actually less.” For a bachelors degree, state employees make 72 cents for every dollar private sector employees make.

The paper was commissioned by the Coalition of State Employee Unions. 

Read the Report Here. (pdf)


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