Corzine's first budget
The State of New Jersey had some difficulty enacting a budget this year, and as a result, the state constitution required a shut down of non-essential services. It looks like the crooks - er, legislators - have worked out a compromise as to how they will fund the state's lavish services, and the taxpayer is left holding the bag. The big disappointment here is that Corzine could have used his experience as a bottom-line driven business guy as a basis to contain spiraling spending. Instead, he seems to be pandering to the state's unionized workers. I guess the temptation to reach into the never ending pot of tax money was too much for him to resist.
I know I have at least one reader who is a state worker - and one who isn't - (two readers is pretty sad)- do either of you know if the missed work days will end up being paid for anyway? That is, if in a normal July sees a state worker in his office 20 days, and paid for a full month, will this year see a week or so less pay? That could be a good thing for the taxpayers, if it's the case. Then we could try the same thing every few months...
I know I have at least one reader who is a state worker - and one who isn't - (two readers is pretty sad)- do either of you know if the missed work days will end up being paid for anyway? That is, if in a normal July sees a state worker in his office 20 days, and paid for a full month, will this year see a week or so less pay? That could be a good thing for the taxpayers, if it's the case. Then we could try the same thing every few months...
posted by Steve at 7/09/2006 04:03:00 PM
10 Comments:
Ok I knew this was coming.
Since I’m involved with the budget process I should be able to shed some insight. We begin doing the state budget for our department in the month of January. We made major cuts in the department and have been on a hiring freeze since January 2006.
The main problems with New Jersey budget is that they have created what I like to call Voodoo Revenue streams in the past. Claiming that they would be able to retrieve millions in these streams. So instead these legislatures or crooks have borrowed from different funds in order to not have the Taxpayer feel the pain. They went to court last year too issue bonds in order to avoid having anyone feel the burden of rising cost. These crooks have left a promise to return these borrowed funds, with no intent of doing so because it would be placed on the next fool behind them instead of handling the issue head on. I give Corzine that he took a stand, stop ignoring these bills and thinking it will just go away. Mayor Bloomberg did the same thing when he took office was to raise the sales tax and now New York is in better shape for it. These Democratic crooks have been borrowing from Peter to pay Paul; they worry about putting useless pork for their districts so they can show that they are working hard in Trenton. You want a balanced budget get rid of Political Appointees that make 100 grand plus, get rid of people holding 3 positions, get rid of legislatures passing a bill that enables all their cronies to be the only would that can submit a bid to a project & change 300% more.
Political Appointees are not on the Essential or Non-essential payroll. These are thank you positions for someone who donated to this individual while running. These are not people that do anything for the State of New Jersey except take up space. Why are Legislatures getting full health and pensions when they leave office?
These crooks don’t care about their responsibility too the people, they only care about their own pockets and the lobbyist they represent. The one area is that I think Corzine should of stuck to his guns and screwed Roberts. This property tax reform is something that I like to see to believe. Until I see something it’s being used to save face for these democrats that are up for election this year in November. I hope we see property tax reform, I really do but the Tax structure is the responsibility of your town. When we pay the School in each district about 70% of that bill and don’t complain about the 3 principles or Administrators that are used in each school or the wasteful spending. I’m married to a teacher and I hear all the negativity to this statement, which I add, then don’t complain about your taxes.
Now the average state worker salary is 24,000. The average state worker gets 12 days vacation and 3 personal days. The state work force was locked out of doing their job because the elected officials by New Jersey Citizens could not do their job. So in retrospective you believe that they should be some missionary worker. Each state worker does not pay taxes too, does not have a mortgage or a family to support? They deserved that one weeks paycheck, the people that should have not been saving face was these politicians who by the way never acknowledge that they would give their salary back for the week. So instead the focus are on these state workers. The News will focus on the state workers. I’m not claiming that everyone one of these people are doing a great job and there’s no company that can claim all their workers work their rear ends off.
I keep hearing we will get these state workers, make them pay more, they have such a cushy job. Well there was nothing from holding anyone back from joining the state workforce. All you had to do was take a test to show how competent you are to perform the duty you are applying for. I always took the side that if you think it’s so much better then join them. I worked in the private and the public sector and when I join the public sector that first year I took a $25,000 decrease in salary and I like to know how many people would make that type of commitment to something. I have been promoted twice since I have been here but still I’m not at the range I would have been in the private sector.
Now your saying well your benefits, you get better benefits then me in the private sector. Well I also make less then you for my position in the public Sector, I have a financial and accounting degree with a minor in management. If you want to pay me my private sector salary and I pay more for my pension and benefits I have no issue with that. What I have an issue is how do you expect to attract professional people to the state if you keep taking things away. You already are off the salary scale and if you make things even in the benefit scale this becomes a missionary job and I’m no missionary. You will have a mass exodus of professional employees into the private sector. Then you might be settling and desperate for a state position because there might be nothing available.
I could go on and on about this subject and there are points I agree with and disagree with. I’m not a political or union specific person at all. I’m a financial person that looks to get the biggest bang for their buck. Like I said I don’t think all across the board you have qualified individuals in each position but the minimum salary is $24,000. These 100,000 plus salaries you hear about are from political appointees. Supervisors in the state have not had a raise since Whitman’s administration. How many people in the private industry have received no raise since then? If you do a great job in the private industry you can 1 – negotiate your new raise or leave and negotiate your new salary. In the public industry it’s not negotiable, you can only get promoted to a new position or just get your measly 1% increase. But you do it for the benefits and that you think you are making a difference in the field you work in.
Umm - ok. But, you did not address the question - Will workers be paid for their time off. Recent news reports suggest no pay reductions, so all the whiners will get paid for the time off. Taxpayers screwed again - and why? Because no one represents them.
I appreciate that many state employees could earn more in the private sector, but who is kidding who? You are not irrational, you do not work for less because you feel charitable, you do it because when you compared the slightly less overall comp with the easier work, job security - govt, esp nj govt, is the best growth industry in the state - , and the occasional paid week off in July, you knew it was a good deal. No one is forced to take a job or stay in a bad one, but I do not see a "mass exodus" of state workers anytime soon. My general position on the topic is fairly simple. Starighten out the retirement plan situation so that it resembles the private sector. Be vigilant about reducing headcount or not increasing into areas that are redundant and unnecessary. Clearly, the ratio of state employees/spending to state population is exceptionally high in NJ - we are doing too much of something and need to stop. Your comments about political appointees, cronies, etc. are well put - how to address them is anyone's guess.
Property taxes? The taxes are administered in a generally fair manner - it's the spending, particularly the unnecessary and redundant spending on admin that you mentioned, that need to be addressed. A few teachers need a fire under their ass, and tenure reform might help that, but I have no problem with a teacher making a decent wage. That said, they should not complain that a successful banker MIGHT make 2 or 3 times what a successful teacher makes - they leave the house earlier, get back much later, put in about 30% more days, and can and do get fired at the drop of a hat. There's a reason people are lined up around the block for the teaching jobs, and it isn't the cafeteria food.
Welcome back to work - and thanks for the insights.
Dear Anon and Steve,
As a teacher, I can tell you some things that may or may not align with the received opinions you may or may not believe:
1. The pay is very good. The "poor starving teacher" went out with The Paper Chase. I make more than a few of my friends in the private sector who have corner offices.
2. The benefits are incredible.
3. Anon's remark about the 3 vice-
principals as wasteful expenditures, etc. is true
--BUT only if you're in a one-room schoolhouse. A school with 600+ kids (like so many middle and high schools in central NJ) needs more than one administrator. While there are "fat" positions, these are not endemic to school districts. The local police dept or Home Depot can (and probably is) just as top-heavy.
4. I don't bitch about my salary or anything regarding how much I "could make" if I left teaching. I don't think I'm a hero because I teach -- or, more specifically, I think as a teacher I do important work, but I don't bemoan some nonexistent salary that I "deserve." If I was so upset about my salary, hours, benefits, etc., I would go to school at night, take the MCATs, etc. I have it pretty damn good--and I work my ass off.
Steve,
Check this out:
http://money.cnn.com/magazines/moneymag/bplive/2006/top25s/homeapprec.html
Then click on the link to see the safest cities--surprising results.
While it's nice to see local towns like EB and even Howell-abama among the safest, the inclusion of Franklin makes me wonder about the selection criteria. That said, I often go to bed at night and forget to lock the front door....
If you are forced out of work not because you did your part but because others didn't pick up the slack like they were supposed too is not your fault.
If the State worker lock out of work for a week they could still apply for unemployment and get something instead of the average citizen thinking they were going to get nothing in return.
Let's face facts, the ones that should of been facing the blame was the democratic house that has been in charge of NJ since I was born. They had to save face by declaring a property tax rebate to hope that NJ DEAD voters will re-elect them.
I got paid and I feel I did my job. I gave all the information and made all the adjustments in my area way before this pissing contest began. Then I get told to stay home we can't figure it out. In other words we can't figure out how to avoid not being re-elected to ourt positions since when Florio raised taxes there was a complete wipeout in the house.
I got my paid off week and everynight I was watching the Budget hearing hoping the BS would end and I can get back to work.
If you think that the state is a cushy job then apply to the state. If its so great and wonderful here then go to the NJ DOP site and look at all the opportunities that exist for anyone in NJ to work. If not then you can't complain about it.
I have no problem with the retirement account resembling the private sector. I also refer you to watch the Frontline episode on 401K and how bad it has been for the majority of people. Still if that reduced the pension in the long run and the obligation that corporate America is abolishing for their own bottom lines, do it.
Also make sure you design every position like that of corporate America. You design the salaries for the degrees that corporate America pays. You make sure that on your retirement account you get matching contributions.
But if you think your going to keep the salaries low for competent educated people plus reduce their benefits & pension and still retain these people, no way. You will then be left for services that will still need to be provided contracted out to the private sector and then you are more under the gun to pay what maybe only one company provides.
I work my butt off, I’m here at 7:15 in the morning, working through lunch and dealing with a bureaucracy way worse then the private sector. I have to monitor 43 million dollars each and every day so where this concept comes that state work is cushy and easy it does not pertain to my position and what service I provide.
Do I get benefits that I would not get in the private sector? Yes. But I sacrifice my salary in order to get those perks. If you want to remove the perks than you better give me another reason to do my job, hence pay me like the private industry.
Also I do believe Teachers work hard, my wife is a teacher and she also tutors. All I was saying is that somewhere cost need to be contained in the school districts. I remember when I went to school you needed to pay for your books and supplies. You would get a list of things you needed before the class begun. Textbooks were used for several years before being updated. I just think the Teachers are the grunt and the administration should be look into to save more then taking funds per child away.
Have a good weekend..
Howell number 11....thats because their was a new sheriff in town...me
:-)
I'm glad Howell was a new sheriff - it's been like Deadwood way too long!
I can see that we are mostly, though not entirely, seeing eye to eye on the compensation / personal responsibility thing. My take on jobs, bills, life in general, is one where the individual needs to assume that he must look out for himself. I really could not care less who a given individual - you, jimmy burns, me, whoever, is employed by - but we all can safely assume that inefficiency in private enterprise is generally punished by failure - except when government intervenes. Conversely, inefficiency in public enterprise breeds further inefficiency.
As far as people not doing well with 401ks, maybe they should actually fund them instead of wasting money on unnecessary consumer goods and cell phones.
Side rant - Cell phones especially piss me off. Figure the average cell owner spends 45 bucks a month on that piece of crap, not too mention all the time wasted blabbing about nothing. If between the ages of 20 and 65, that 45 bucks a month were invested at 7%, compounded, you'd have over 150 grand at age 65. Saving is easy, people make poor decisions. Rant over.
The reliance on pensions, and I include Social Security as the Godfather of all pensions, is one more insult to all of humanity, assuming we are too stupid and lazy to save for ourselves. Sadly, many of us are too stupid and lazy.
By the way, I clearly do not think you are stupid or lazy, even if are part of their plan. :P
You know I was going to write has...we all make mistakes.
I believe the average citizen can't save and become and obligation one-way or the other to the Government. Instead people should live within their means instead of living by what they want and need. You sometimes find out that something you really thought you couldn't do with out you never needed.
Government has rescued plenty of industries that have failed. Just out of the top of my head is Saving & Loan, Chrysler..ect ect. It's letting companies who had signed contract with retired employees go bankrupt and pass on their pensions to the tax payer and off their own bottom lines. How is that a responsible thing to do? We pay for their negotiations and then they start making profits when that obligation is eliminated. It’s not on their books and should be their own responsibility for paying it off, nah we go bankrupt and look the other way. Very close to how governments are run today.
Business does not always pay the price of failure and now the buck has been passed on to the taxpayer. Business does not always go out of business each time they hit a roadblock. They raise prices of their product, they reduce the content of their product without the consumer realizing that the amount has been changed, they lay-off workers or deport the jobs to cheaper labor countries. Business goes out of business for many reasons, not just because they were not fiscally prudent.
I'm not saying that we need to be more fiscally responsible from the town, county, state & federal level. You're right all I'm saying is that the state workers are not the reason for all this pork that found it's way into the 2007 budget. It's pork projects that these legislatures think will get them re-elected. They are not a government for the people but for themselves.
If you want to remove the pension all I'm saying is make it a 401K, I have no problem with that too. But you have to at least pay people in comparison to the private level. If you’re going to expect a lower salary here then you have to have some incentive to draw professionals.
Howell Has a new Sheriff...
I could go on and on about how government is the problem, etc, etc, but - we can't forget now, Govt and the big bad corporations, with all their corporationy behavior, are merely groups of.... people! People in groups do things people alone would probably not do - soccer riots have something in common with Bush's Medicare debacle.
For a far more detailed and articulate expression of the economics behind the decline of this once great nation, buy the Friedman book referenced in the more recent blog entry - or better yet, borrow it from the library - one of the few govt services I see value in.
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