Related to a previous discussion forum post on public sector pensions is the general state of public sector finances.
Barron's (subscription required) Editor Thomas Donlan wrote a recent piece (click here to read) on the alarming state of state finances.
Donlan provided some enlightening statistics from Bureau of Labor Statistics on the average wages and benefits of state and local governments versus the private sector:
- Average wages and benefits are $26.24 an hour in government versus $19.45 an hour in private employment.
- Health benefits cost state and local government an average $4.43 an hour compared with $2.01 for private employers.
- State and local governments award their workers an average $3.23 an hour for pensions and savings plans compared with 94 cents an hour in the private sector.