HARRISBURG, Pa. – Auditor General Jack Wagner said that state government could save taxpayers up to $381 million annually by offering all commonwealth workers a voluntary severance package similar to the successful program he offered his own employees this past summer.
The Department of the Auditor General saved $1.5 million when 50 workers, or 7.5 percent of the Department of the Auditor General's workforce of 665, chose to participate in Wagner's Voluntary Retirement Incentive Program. The goals of the program were to reduce department costs to meet budget constraints and reduce the number of involuntary furloughs. The program was so successful that enough employees accepted the incentive eliminating the need for furloughs.
Wagner said his program, if offered to all state employees, could produce taxpayer savings of up to $381 million, assuming a participation rate of 7 percent of the state's total workforce of 77,168.
“State government has grown too big and Pennsylvania taxpayers can no longer afford it,” Wagner said. “With Pennsylvania facing a budget deficit of $4 billion to $5 billion next year, it's time to institute a voluntary retirement incentive program that would shrink the state payroll and reduce the cost of state government to taxpayers.”
Wagner, the state's independent fiscal watchdog, said that his financial stewardship of the Department of the Auditor General should serve as a role model for state government. During his 5 1/2-year tenure, Wagner has reduced the size and cost of his department while continuing to produce award-winning audits that have highlighted hundreds of millions of dollars in potential savings to taxpayers. At about $44 million, the department’s current budget is almost $2 million less in the current fiscal year than when Wagner took office in January 2005. These savings were achieved through various measures, including a reduction in the department’s auto fleet, reduced travel expenses and the elimination of overnight trips. The department’s workforce has been reduced from 755 employees in January 2005 to its current 615 -- without any furloughs.
Wagner offered management and, with cooperation from the American Federation of State, County and Municipal Employees, union employees of the Department of the Auditor General a one-time voluntary retirement incentive in July of this year.
The 50 workers who accepted the incentive received $1,000 for each year of service, up to a maximum of $25,000, and left employment with the department on or before Sept. 3, 2010.
There are currently 77,168 salaried employees under the governor’s jurisdiction who are earning an average total compensation of $70,478, including salary and benefits. If 7 percent of the workforce were to accept the voluntary retirement incentive, there would be 5,402 retirees, and based on projected savings of $37,200 per employee (after incentive and leave payouts), the state would save $201 million the first year. In the second year, if those 5,402 positions are not filled, the state would save $381 million.
“These are significant savings that the state can realize on an annual basis,” Wagner said. “Rather than repeatedly raising the spectre of state employee furloughs to address budget shortfalls, I urge the governor, the general assembly, and future governors to offer their employees a voluntary retirement incentive, which would provide greater cost savings in the long run.”
(Source)
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5 comments:
I wonder how long before the loonies on the right start screaming "fire the lazy gov. employees" while the loonies on the left scream "they want to see these workers starve". At which time all common sense initiatives will fall to the wayside.
All governments large and small seem to operate ponzi schemes. There was not ample funds set aside for the pensions when the governments enticed people years ago to leave the private sector and work for the governments. It is really criminal.
The Federal Government is trying to convince all of us now that they don't have to "repay" the loan they took from the Social Security Trust Fund (like you can actually borrow money from a Trust Fund). They are saying Social Security will be "insolvent". That is only because they stole the money! They forced us to pay into the program and now refuse to honor their end of the "deal" (they made us an offer we couldn't refuse - or rather, if we refused we were incarcerated into a Federal Prison).
This is much better than layoffs- these guys go out the door with their retirement and incentives, not into the unemployment line.
This is a great idea that really does save $. The City of Salisbury should look into an early retirement incentive. Other local municipalities have done it and have saved a ton.
Dear Mr. President,
Please find below my suggestion for fixing America 's economy. Instead of giving billions of dollars to companies that will squander the money on lavish parties and unearned bonuses, use the following plan. You can call it the "Patriotic Retirement Plan":
There are about 40 million people over 50 in the work force. Pay them $1 million apiece severance for early retirement with the following stipulations:
1) They MUST retire. Forty million job openings - Unemployment fixed.
2) They MUST buy a new American CAR. Forty million cars ordered – Auto Industry fixed.
3) They MUST either buy a house or pay off their mortgage – Housing Crisis fixed.
It can't get any easier than that!!
P.S. If more money is needed, have all members in Congress pay their taxes...
Mr. President, while you're at it, make Congress retire on Social Security and Medicare. I'll bet both programs would be fixed pronto!
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