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Work for a Government and Rake in Bucks

State and local employees receive 34% higher wages on average than workers in the private sector, and the government workers' fringe benefits are 70% higher than those in private industry. This is one of the stunning revelations in a new study by New Jersey economist A. Gary Shilling. Last year, 51.4% of unionized jobs were in government. In the early 1970s, more than 80% of unionized jobs were in the private sector and less than 20% in government, says Shilling. This leads to some stark imbalances: 84% of state and local governments offer their employees defined benefit pension plans. That compares with a mere 21% in the private sector, says Shilling, noting that in California, public safety workers retire at age 50 after 30 years of service with benefits equal to 90% of their final year's pay. Result: states and municipalities are on the brink of insolvency. He mentions that San Diego is one candidate for bankruptcy.

City Councilmember Carl DeMaio tomorrow (March 3) will hold a press conference at the 13th floor press conference room in city hall at 11 a.m. Subject: the rhetoric of city employee pay cuts does not match the reality. He notes that the city awards more than 2,000 raises and pays a top pension of $299,103 in the middle of the budget crisis. Among other things, he will discuss how many city employees entered the notorious "$100,000 Club" last year.

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State and local employees receive 34% higher wages on average than workers in the private sector, and the government workers' fringe benefits are 70% higher than those in private industry. This is one of the stunning revelations in a new study by New Jersey economist A. Gary Shilling. Last year, 51.4% of unionized jobs were in government. In the early 1970s, more than 80% of unionized jobs were in the private sector and less than 20% in government, says Shilling. This leads to some stark imbalances: 84% of state and local governments offer their employees defined benefit pension plans. That compares with a mere 21% in the private sector, says Shilling, noting that in California, public safety workers retire at age 50 after 30 years of service with benefits equal to 90% of their final year's pay. Result: states and municipalities are on the brink of insolvency. He mentions that San Diego is one candidate for bankruptcy.

City Councilmember Carl DeMaio tomorrow (March 3) will hold a press conference at the 13th floor press conference room in city hall at 11 a.m. Subject: the rhetoric of city employee pay cuts does not match the reality. He notes that the city awards more than 2,000 raises and pays a top pension of $299,103 in the middle of the budget crisis. Among other things, he will discuss how many city employees entered the notorious "$100,000 Club" last year.

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Government Employees Pull Far Ahead of Private Sector Employees in Pay, Fringes

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