Friday, February 4, 2011

Study: Mich. public pay, benefits not out of line - Boston.com

Study: Mich. public pay, benefits not out of line - Boston.com

Study: Mich. public pay, benefits not out of line

By Kathy Barks Hoffman
Associated Press / February 4, 2011
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LANSING, Mich.—A new study released Thursday contradicts Gov. Rick Snyder's contention that public workers' pay and benefits are out of line with the private sector, saying instead that state workers make about 7 percent less in pay and benefits annually than their private counterparts, while local government workers make about the same.

"Public employees do get much better health care benefits than private-sector employees get, but they pay for it through lower wages," said the study's author, Jeffrey Keefe, a labor and employment relations associate professor at Rutgers University in New Jersey. "Public employees in the state of Michigan are ... neither overpaid nor overcompensated."

Keefe's research challenges a citizen's guide Gov. Rick Snyder released Monday that showed the average state worker makes over $85,000 in pay and benefits, while a private-sector worker makes just under $40,000.

The Republican governor acknowledged his data includes minimum-wage and