California, Texas, and State workers’ pay
By David Mildenberg and James Nash
California prison guards more than twice are counterparts in Texas-$ 71,000 a year, compared with $31,000. That difference for State employees generally applies: during the average private sector workers in California in 2009 12.5% more than in the Texas made, Dept. figures was the differences in the State employees 25.2 percent, according to the Commerce. The difference underlines the benefits – and taxpayer costs – the work in a Union-friendly State and can help explain why California has more insoluble difficulties as Texas financial year. Although Texas has a budget deficit of $4.3 billion this year, it has the second highest credit rating from standard & poor’s (MHP). California has the lowest rating of the State and is struggling to close a deficit of $15.4 billion this year.
The difference in the State worker pay can partly explained by California’s cost of living, which is almost 15% higher than in Texas. Yet the power of collective bargaining even more important, says Oran McMichael, a long-time work Organizer in Texas. Says without court and legislative staff trade unions represent 85 percent of all workers in the State in California, Lynelle Jolley, a spokeswoman for the State personnel administration of Abbot. While Texas has numbers for its employees in unions, is probably less than 10 percent of the share, says state auditor John keel.
Higher wages mean higher pensions. Texas of retired teachers receive an average of $18,372 per year, compared with $25,440 for teachers in California. The average scholarship for former civil servants in Texas increased by 3.9 percent in the five years through fiscal 2010; in California, it jumped 32 percent from 2004 to 2009, according to the largest pension plans in both States.
The contrasting experiences of Texas and California provide lessons for States like Ohio, New Jersey and Wisconsin, where Republican Governors focus have to reduce employment costs to control in the balance budget pressed. State workers in California and Texas are targeted for cuts is, although the pressure in the former is more intense. State employees get it no general increase for 2009 and are now required to take an unpaid day off each month Jolley says.
Higher wages, but makes for a more consistent workforce. California’s 10 per cent turnover rate for warden is about half that it is in Texas. “Our people consider their work as a career, not only to have something until something better comes”, says Ryan Sherman, a spokesman for the California correctional peace officers Association in Sacramento.
The bottom line: A higher pension and salary California, where most public employees are handled by trade unions, is facing pressure as Texas.
Dream collection is a reporter for Bloomberg News. Nash is a reporter for Bloomberg News.
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