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Keith Faber’s Weekly Column
Senate Bill 5...
Jobs: By the numbers
April 19, 2011
Will Senate Bill 5 save any money? This is the question I have
been asked several times in the last few weeks. Opponents of the
bill have tried manipulating the truth, asserting that this bill has
nothing to do with the budget. Furthermore, in an effort to
capitalize on the emotions of fear and uncertainty, they’ve deemed
Senate Bill 5 as a political attack. Neither claim is true.
Senate Bill 5 is not a political attack; rather, it will save money in
the short term and in the long term.
In the short term, Senate Bill 5 simply asks that public employees pay
15 percent of their healthcare premium. This is not an egregious
expectation considering private sector workers pay, on average, between
21 and 31 percent of their healthcare costs; in fact, it might be
surprising to know that many government employees already pay more than
the 15 percent in the bill for their healthcare. This provision
will save money and it will bring additional transparency to local
governments. In my home of Mercer County, asking school employees
who don’t already to cover just 15 percent of their premium will save
more than $1 million. In terms of money, these are significant
savings, but let’s consider these savings in relation to staffing: in
Mercer County that equates to roughly 20 teachers. I frequently
heard the most hysteric of opponents of this bill refer to it as a
“job-killing” bill. Would those 20 teachers who are now able to
maintain their jobs agree? On the county level, this would save
more than $230,000. That would equate to roughly five sheriff’s
deputies. Do you think the sheriff’s deputies that can remain
employed would consider this as an effort to kill jobs?
The savings in some of the other counties in my district are just as
impressive:
Allen County: more than $325,000 in school district savings, county and
municipal governments could save more than $700,000;
Auglaize County: more than $700,000 in school district savings, county
and municipal governments could save more than $153,000;
Champaign County: more than $200,000 in school district savings, county
and municipal governments could save more than $150,000; Shelby County:
more than $440,000 in school district savings, county and municipal
governments could save more than $140,000.
Based on the information I received from local superintendents and
treasurers, by simply mandating that public employees pay 15 percent of
their healthcare premium, the total money saved by the schools in my
district would exceed $2,746,000. That is an average of $74,000
per school district. Counties and cities would save nearly $1.6
million at an average of $228,000 per county. The proof is in the
numbers. Opponents of this bill would rather you not see these
figures because they only solidify the fact that Senate Bill 5 is going
to save money, and in turn, save jobs.
By enacting this provision, schools, villages, cities and counties will
no longer have the option of hiding compensation from the sun.
Senate Bill 5 creates transparency, which is one of the most important
provisions of this legislation. An additional transparency
provision that was an integral part of this bill was the prohibition of
the “pickup on the pickup” for public pensions. This fringe
benefit, most frequently utilized by school administrators, is where
the employee pays less than their share of their pension contribution
and the remainder is covered by the taxpayers. Schools in my
Senate District will spend over $2.1 million on this benefit alone in
2011. As the public is often unaware of this unique benefit, it
was essential that the legislature address this issue and bring to
light the full cost of the employee’s benefit package. To not do so
would be anti-transparency. Ultimately, voters and taxpayers
should be included in a discussion that determines where their
hard-earned money is being spent. There is absolutely no excuse
to consider otherwise.
Senate Bill 5 will help level the playing field between public and
private sector workers. Several years ago, Ohio’s businesses began
adapting to the new economic realities. Unfortunately, many of
them were forced to reduce wages. Some were even forced to lay
off workers. Government should not be—and cannot be—immune to
these fluctuations in the economy. By ignoring the financial
challenges we face, a system is created that simply is not fiscally
sustainable. I understand that many public workers have made
concessions and I respect their willingness to do their part during
such turbulent economic times. However, when the increase in
personnel costs significantly exceeds the average cost of inflation,
which was the case in many of the school districts I researched, there
is an underlying problem that needs to be addressed. Management
needs flexibility—similar to what managers in the private sector
utilize to properly maintain their staffing and budget.
We currently have an $8 billion hole in the state budget. Closing
this budget hole will take sacrifices across the board. However,
giving the state and local governments more tools to manage their costs
will make it easier for everyone to deal with the necessary
reductions. Failure to control state costs will result in
increased taxes and will further cost Ohio private sector jobs.
Do not be persuaded by cheap scare tactics and empty threats.
Senate Bill 5 will help save the jobs of both private and public sector
employees. I have the utmost confidence in our local elected
officials to coexist with union leaders at the collective bargaining
table to create contracts that will protect the interests of both
employees and taxpayers. This is not a job-killing bill.
This is not a political attack. This is simply a matter of saving
money, which in turn saves jobs. The proof is in the numbers.
As always, I welcome your views on state government issues. Please
contact my office via e-mail: SD12@senate.state.oh.us, via phone: (614)
466-7505 or via mail: State Senator Keith Faber, 1 Capitol Square,
Columbus, Ohio 43215.
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