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The Columbus Dispatch...
Editorial: Apples to Apples
Friday, February 25, 2011

For months, Ohioans have heard the debate over whether government employees are overpaid compared with the private sector.

State Auditor Dave Yost says he plans to address the issue in performance audits his office will conduct of state agencies and local governments.

If he can deliver a straight answer, free of ideological spin, he’ll bring significant added value to those audits.

As state leaders struggle to bring public-employee pay and benefits in line with those of private-sector workers, reliable comparisons would be invaluable. While some public positions, such as police officer and firefighter, have no exact private-sector counterpart, many jobs do, and policy-makers need to know how compensation compares.

While public-sector benefits clearly are superior in several ways, reports by ideologically based think tanks offer conflicting and confusing statistics about pay rates. The free-market-oriented Buckeye Institute for Public Policy Solutions reported that public-sector workers have considerably higher pay. The liberal Economic Policy Institute’s study concluded the opposite: that Ohio public employees earn less per year than comparable private-sector workers.

As with any complex question, two seemingly contradictory answers both can be technically correct, depending on what statistics are compared.

Yost figures neither of the think-tank reports is definitive, because each tries to provide a general answer covering a broad range of public agencies and job types.

In performance audits of state agencies, he says, he’ll make much narrower comparisons of specific job types. Some categories of state workers are likely to have higher pay than private-sector counterparts; for others, the opposite might be true.

Ohioans will expect Yost to approach the pay comparisons without predisposition, as the auditor is expected to do with any investigation of a government entity.

The Ohio Lottery Commission under Democratic former Gov. Ted Strickland chafed last year at plans by then-auditor, Republican Mary Taylor, to conduct a performance audit of the agency.

Taylor, who was running for lieutenant governor at the time, and who might have made political hay with such a review, enhanced her credibility by delivering a clinical, fair assessment that gave lottery operations generally high marks.

Some agencies and local governments might not welcome the extra scrutiny of a public-private pay comparison. Yost said deciding what to cover in an audit “is a collaborative process” with the entity being audited, but he should push to include the pay comparison.

One purpose of such audits is to identify ways the organization could operate more efficiently.

Given that the bulk of most government budgets is payroll, few operational details are more important than setting appropriate compensation.

Read it at the Dispatch


 
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