Michigan governments would save $5.7 billion if the employment benefits of Michigan’s state and local government workers were set at private sector averages.
State and local governments currently employ roughly 400,000 full-time workers in Michigan. It may be procedurally difficult to attain all of the $5.7 billion in a single year, but a policy that public-sector employees will not be paid more in benefits than private sector averages will eventually result in these savings.
Here’s what $5.7 billion can buy:
- A year’s clothing budget for every family in Michigan.
- A round of golf for every Michigan resident at both Arcadia Bluffs and Bay Harbor.
- A brand-new 50-inch 3-D plasma screen T.V. for every household in the state.
- A year’s worth of electrical bills for every household in Michigan.
But as a policy matter for legislators:
- Michigan can eliminate the Michigan Business Tax, resolve its budget deficit and still have $2 billion left to spare.
- It can eliminate its personal income tax in its entirety.
In a politician’s terms: every man, woman and child in Michigan could max out on their personal contribution to any state representative of their choosing.
Governor-elect Rick Snyder said he will investigate this disparity, provided that consideration will be given to the affected workers.