Squealing about the income gap


The 2009 "Maine Piglet" book, from the Maine Heritage Policy Center, is billed as the encyclopedia of the pork in Augusta. It is filled with indiscriminate criticism; it attacks Dirigo Health and playgrounds equally, under the banner of waste.

This hamfisted approach distracts from its most concerning revelation — the gulf between public and private salaries, which has nothing to do with pork, and everything to do with policy. Of all issues facing lawmakers, this is the most explosive.

According to the "piglet book," the average compensation for a state worker — including benefits — in 2007 was more than $51,000. Analyses of private sector salaries in Maine — excluding the self-employed, farmers and the military — top out at an average of $46,000.

It's a rough comparison and doesn't prove waste. The trend, though, is clear. As the public sector in Maine sees its compensation (especially benefits) increase while the private sector stalls, tension between these sides intensifies.

Consider what's happening nationally. An analysis of Commerce Department data shows the average federal wage is $79,000, while the average private wage is $49,000. If benefits are included, these increase to $119,000 and $60,000.

This disparity is unsustainable.

Like or loathe the messengers of this information, this gap cannot be ignored. The problem is bipartisan: Maine's income gap has grown under Democratic control, while the federal divide went hogwild under President George W. Bush.

Pointing ideological fingers doesn't help. Everyone's been at the trough. The question is what to do about it.

If unaddressed, this gap between public and private compensation may undermine the important work of government: educating children, caring for the needy, building roads, restoring our economy. It's not unreasonable to think it already has, as the steady undercurrent behind the repeated citizen initiatives to garrote government spending in Maine.

Augusta has responded to tight budgets with furlough days and layoffs but still hasn't quite got the message. Talk that Maine lawmakers may be asked to restore $3 million to $4 million in frozen longevity pay to union workers, a budget-balancing concession that is now the subject of several human rights complaints, proves it.

It's ugly sport to slam state employees for making too much money. The "piglet" book is a prime cut; for example, it cites that the state's chief medical examiner, Dr. Margaret Greenwald, earns more than Gov. John Baldacci. Is this waste? It sounds right to us.

Evaluating compensation of state workers as if they're professional athletes is folly. The real problem is the disparity, which is getting worse and not going away. Some propose freezing or slashing public compensation as the appropriate strategy.

While this would relieve pressure, it would not address strengthening the private sector to offer superior wages and benefits. Closing the income gap won't come from slaughtering pigs alone. 

editorialboard@sunjournal.com

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Displaying comments, from newest to oldest

skippy's picture
verified

Used to be that working in

Used to be that working in the public sector meant low wages, but great benefits. Now it means both high wages and great benefits. Unfortunately this cannot continue as the taxpayers will revolt. It may take a long time or the some tax payers simply leave for less taxing pastures. Some of our former governors are now citizens of other less taxing States and I wonder if Maine taxes had any part of their decisions to use a less taxing address. One of the problems is unions fighting for never ending raises. Unfortunately we cannot call the fire or police departments in China or some other low wage country for service. If one looks at all the industries that have been lost in this State and Country one sees the effect of high wage demands by unions. Our State leaders have to wake up and start standing up to unreasonable union demands. They should look at what President Reagan did with the Airport traffic controllers and do the same thing here. This would be more beneficial than cutting services to helpless special needs children or elderlies etc.

jalbrecht1's picture
verified

Well, thank you mikec for

Well, thank you mikec for your repeating these republican myths. Fact is tax rates have gone down for 45 years. Last tax changes were all reductions. $55,000,000 tax cut in LD 1495. State sales tax rate reduced from 6% to 5%. Federal income top tax rate fell from 90% to 35%. Last significant tax increase was G H W Bush's in the late 80's.
Jon Albrecht Dixfield

Proudliberal's picture

I hereby nominate this post

I hereby nominate this post and it's author for a wingnut wanker award for 2009. This is some world class stupidity and should be spread far and wide to warn of the effects of watching Fox "News" and thinking you are watching news.

aronzio's picture
staff

Hi folks,  A

Hi folks, 

A clarification on one figure posted in today's editorial: the average figure cited for private salaries in Maine, $46,000, does not include benefits. But it does not include the self-employed, military or agriculture sectors. If it did, the average private salary in Maine would decrease to about $33,000, according to economists.

Anthony Ronzio
Editorial Page Editor
Sun Journal
tronzio@sunjournal.com

jalbrecht1's picture
verified

If the editorial board

If the editorial board really thinks there is a problem with state worker salaries, then bring in unbiased professionals in salary administration to make a valid comparison and make a judgement on whether a real gap exists. Let's not use partisan propaganda.
Jon Albrecht Dixfield

jalbrecht1's picture
verified

So Tron you support raising

So Tron you support raising the Governors salary to $250,000? Everyone else we need to pay based on market rates or they leave.
Jon Albrecht Dixfield

jalbrecht1's picture
verified

How many Ph'd's work in

How many Ph'd's work in private firms in Maine. Jackson labs a few more here and there. Maine State government is full of them in and out of higher education. They have to be paid current market rates. To compare average state government wages to average private wages without adjusting for the vastly different occupations each employs makes the comparison useless. Several other factors are also not accounted for age, sex, education being just the top three. These number mean nothing. The report shows no gap. Only an occupation by occupation comparison which adjusts for factors taken into consideration in setting salaries can show if a gap really exists.
Jon Albrecht Dixfield

Ron's picture

I'm sure I'll get a lot of

I'm sure I'll get a lot of biting comments in reply but I'm going to make my comments anyway. This wage discrepancy issue is Maine voters own fault. Regarding state wages, nothing will change until voters stop putting the Democrats, who are beholden to the state labor union, in charge of state government. And on the county and municipal level, voters sit back and watch the teacher, police, and fire unions run all over city management and councils. Management and councilors don't dare challenge these unions, because the voters (who complain about taxes) don't stand up and back them up by vocalizing their support, which the union supporters do.

JLaBonte's picture

Very good point, Tron!

Very good point, Tron!

Rinoblast's picture

One fact worth mentioning:

One fact worth mentioning: Baldi makes $80,000/yr before benefits, making him the second-lowest paid governor in the country (Some sources will rank him a little higher because people like Ahhhhhhnold don't accept their salary). To claim it's unacceptable for employees to make more than him shows a misunderstanding of salary and what people should be making in comparison to the private sector (whose salaries rise with inflation every year, unlike the governor's which is subject to politics). If all public employees were capped at earning less than the governor, we wouldn't have many high-quality, high-ranking officials (although I'm surer many would claim we don't have that today either).

tron's picture

I firmly believe no public

I firmly believe no public official in this state should earn more than the governor. Not just state officials but county and municipal workers also. Somehow it seems that paying someone to run a city like Lewiston or Auburn is NOT worth more than running the state. And definitely Police and Fire chiefs of either city should NOT earn more than the Governor. Who do these people think they are, and the governing boards of the cities really deserve to be put on the spot with this piglet book. Local councils control the wages and to allow such run away salaries is disgusting.

Jabba's picture
verified

And that model should be

And that model should be adhered to throughout government infrastructure. i.e. A school superintendent should not make more than a city manager, as is the case in Lewiston.
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