Raises for state workers — but 25 percent?

State employees shouldn’t be forced to live in poverty, but their compensation increases shouldn’t vastly outpace the private sector.

Recently, legislative Democrats proposed a series of pay hikes for state workers. The proposal included a 2 percent increase, effective April 1, an 8 percent to 10 percent hike this July and a 4 percent raise next July. There would be $250 quarterly retention bonuses for the next two years and the return of longevity pay. Plus, they called for increasing the employer portion of contributions to the Public Employees’ Retirement System. Currently, state government and employees split those evenly.

“The package represents upwards of a 25 percent take home pay increase by the end of 2024,” legislative Democrats wrote in a news release.

If that sounds massive, you’re right. In 2022, private-sector compensation rose an average of 5 percent. Over the past two years combined, it’s up just more than 10 percent, according to the Federal Reserve Bank of St. Louis. Democrats want to bestow state employees with raises that private-sector workers who would be forced to foot the bill can only dream of.

Gov. Joe Lombardo has already signed a bill giving state workers two $500 retention bonuses. He hasn’t been shy about his plans to boost state worker compensation, either. He proposed 8 percent and 4 percent annual pay bumps and $2,000 annual retention bonuses. He argues the money is necessary to fill state positions, which have around a 20 percent vacancy rate. Those are high numbers, but at least retention bonuses don’t increase future PERS obligations.

Pay hikes are one thing, but raises for government workers that far exceed private-sector realities are another. But it’s no surprise that Democrats prioritize public-sector employees. They’re a key special-interest group and a primary financial benefactor. Democrats and government unions have long enjoyed a symbiotic relationship at the expense of taxpayers. Labor bosses use member dues to elect Democrats. Once in office, Democrats push for evermore lucrative pay and benefit packages for favored unions. On and on the cycle goes.

There are many warning signs that a recession is looming. Tech companies have announced major layoffs. Interest rates are up. Home prices have fallen. Politicians shouldn’t dole out pay hikes that will almost certainly require tax increases to fund in future sessions. In addition, compensation adjustments should bear some relationship to what the average taxpayer — who is responsible for the bill — can expect.

Pay hikes? Fine. But a 25 percent raise over the biennium is exorbitant.

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