State budget proposes payroll increases
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My favorite lobbyists, the local 4-H members, were in Helena last week. Almost every legislator shows up for the 4-H breakfast and presentation.
Our payroll is pretty complex. Let me just start with your total state payroll, $1,376,787,312.32. Yes, that is $1.37 billion bucks. The university system is included, so even if we remove their salaries, state payroll is $840 million per year.
Half of that money is federal dollars and things like hunting licenses. Remember this is just state employees. You also employ county, city and school workers. Altogether, government is the largest employer in our state. I wish we could pay everyone what they are worth.
Another complicated number is just how many employees do we have? I get numbers from 12,500 and up. The Department of Administration told me that they print more than 16,000 checks per month. That number includes part time, sick leave, vacation, retirement payout — and let me tell you about health insurance.
For many years you might have heard that state employees did not get a raise. Instead, the employee unions negotiated increases in health insurance. In 2005 the state paid $506 per month per employee health insurance. The current governor’s proposal for 2017 is $1,054 per month. This money is better than a raise because it is not taxed. Obamacare might just tax this “Cadillac” plan in the future.
Before I go any farther, I better tell you my salary. Your legislators earn $82.64 per day. Not bad for a three hour Saturday, but only $7.52 per hour for an 11 hour day. And we have lots of those. We do get expense money during the session.
We also can opt in for the health insurance and retirement. And I am now eligible for Medicare as well. I estimate that I will earn $13,000 in salary and expenses in each of the next two years. Your legislators do not serve for the money. Many lose money when they are not home at their jobs. That is why many of us are retired.
There are other benefits state employees receive. We pay about 10 percent of the salary in retirement. The employee puts in less. The new state health clinics are free for state employees and their dependents. These are located in Helena, Billings, Miles City, and Missoula. There is not even the $15 co-pay requirement.
The agency told us that 64 percent of state employees use the new clinics. I do not think it is fair to the other 36 percent that have to pay the co-pay. The agency’s rationale was that more people would use the clinics and become healthier.
Last session the governor’s budget asked for a 5 percent raise in each of the next two years for state employees. State agencies gave longevity and reclassification increases of $54 million. And there was the usual health insurance increase.
The legislature was concerned about the lower paid employees and the large number of unfilled correction officer jobs. So, we gave the governor the cash for 3 percent for each year and asked that he use the money for those things.
A 5 percent increase in a top dollar job, say $100,000, is $5,000 dollars and only $1,750 for a $35,000 a year job. The governor chose to give the 3 percent to all and by delaying the next year increase several months, he was able to give a 5 percent increase the second year.
So, now when we start this new budget, the total payroll is much higher than we expected. Your legislature did not plan for this 8 percent increase. Now the new proposed pay plan calls for $.50 per hour for all employees.
Thanks for all the calls and comments. Leave me a message at (406) 444-4800. My cell is (406) 253-8766, but it is usually off. My email is sen.janna.taylor@mt.gov and my website is jannataylor.com. Remember that I work for you.
