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Thursday, October 27, 2011

Public Worker Overtime Binge in California Contributes to the State's $19 Billion Deficit

BLOOMBERG -- "Jean Keller earned $269,810 last year working as a nurse at a men’s prison on California’s central coast by tripling her regular pay with overtime hours. Keller got more overtime in 2010 than any other state employee. In all, California’s public workers collected $1.7 billion of extra pay last year, more than half of it in overtime, state payroll data show. The rest was for unused vacation and union-negotiated benefits such as uniform allowances, physical-fitness incentives and special compensation in recognition of a “complex work load.”

“It’s outrageous,” said 29-year-old Gilbert Ramirez, one of about 30,000 teachers fired in California since 2007 because of budget cuts. “It boils my blood that I’m out of work and they claim they don’t have enough money to pay me.”

California paid the additional wages -- enough to fund the average salaries of about 25,000 teachers -- as it faced a $19 billion deficit and cut school spending and services for poor children and the elderly. The state may have to trim the academic year by seven days and eliminate some student busing if revenue shortfalls persist.

The extra compensation underscores a broader trend in California, where government workers are paid more than in other states for similar duties. Among them: city managers whose pay is higher than the governor’s, prison doctors who make more than counterparts in other states and Los Angeles firefighters who collect twice the national mean."

MP:  Nurse Keller wouldn't quite qualify for the "top 1%" based on her income of $269,810, but would certainly easily qualify for the "top 5%," which required an income of "only" $154,643 in 2009 (data here). No wonder California has a $19,000,000,000 deficit.  

HT: Matt Bixler

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