State Employee Pay Grows 25 Percent Above Inflation Since 1999

Total Payroll Up $1.5 Billion Despite Fewer Workers

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The average state employee compensation package costs approximately $93,039. Inflation-adjusted wages and benefits have increased 25 percent since fiscal 1999. The figures include the value of all benefits from state-paid retirement contributions to dry cleaning allowances.

The largest cost increases came from retirement benefits (which increased from $309 million in fiscal 1999 to $772 million in fiscal 2008) and health insurance (which increased from $273 million in fiscal 1999 to $554 million in fiscal 2008).

The wages and benefits of Michigan's over 50,000 state employees cost taxpayers $4.7 billion in fiscal 2008. This is up from $3.2 billion in fiscal 1999, despite the state now employing 15 percent fewer workers.

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Education Policy Director Ben DeGrow discusses his study and its context to Michigan's Adequacy Report in Education Spending, May 2016. To see study go to http://www.mackinac.org/22332

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