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New Study Finds Big Gap in Pay, Benefits Between Government and Private-Sector Workers
Think Tank Documents the Disparities of 'The Two Connecticuts'
Hartford, January 10, 2006 -- Today the Yankee Institute for Public Policy released "The Two Connecticuts," a study that examines wages and benefits in the Nutmeg State's public and private sectors.
Written by Philip Gressel Fellow for Tax and Budget Policy D. Dowd Muska, "The Two Connecticuts" reveals that:
* the unionization rate has dropped to single digits in Connecticut’s private sector, but the portion of public employees covered by collective-bargaining agreements is over 80 percent
* in most job categories, Connecticut's public-sector employees earn more than private-sector workers -- sometimes as much as 95 percent more
* healthcare benefits in Connecticut's public sector are substantially better -- including the portion of insurance-plan cost that is covered by employers and the quality and variety of coverage offered
* while defined-benefit pension plans are shrinking in the private sector, they continue to remain common in Connecticut government employment
* paid leave is substantially more generous in Connecticut's public sector
* job growth may be stagnant in the Nutmeg State's private sector, but that’s not the case for government employment, which has outpaced Connecticut population growth by a factor of four since 1970
* strong anecdotal evidence suggests that misbehavior, cronyism, nepotism, and even criminal activity may be far more common in Connecticut's public sector
"This study confirms what many Connecticut taxpayers have long suspected," said Yankee Institute Executive Director Lewis M. Andrews. "Compensation for government works in our state is seriously out of whack with the private sector. No wonder cities, towns, and the state spend so much tax revenue."
"The cost of Connecticut's public employees is well over $10 billion," Muska said. "Imagine how much tax revenue could be saved with even minor reforms to our government-employment policies."
"The Two Connecticuts" explains that there are promising reforms to reduce the immense cost of the Nutmeg State's public employees, including privatization and competitive contracting. These reforms have been successful elsewhere, but they require political courage on the part of Connecticut’s elected officials.
Muska will appear this morning on the WTIC program "Sound Off Connecticut" with host Jim Vicevich to discuss "The Two Connecticuts." Muska will also appear on several radio and television programs over the next few weeks to discuss his findings.
The Yankee Institute for Public Policy is a nonprofit, nonpartisan, research and education organization that finds new ideas for lower taxes and better government in Connecticut.
Muska is available for print, radio, and television interviews. Contact Mary Crean at (860) 521-6164 or mary@yankeeinstitute.org.
WARNING: File size is large, so download time will vary depending on your connection speed.
D. Dowd Muska is the Yankee Institute's Philip Gressel Fellow for Tax and Budget Policy.
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The Yankee Institute for Public Policy, Inc. is a nonpartisan educational and research organization founded more than two decades ago. Today, the Yankee Institute's mission is to "promote economic opportunity through lower taxes and new ideas for better government in Connecticut." The Yankee Institute for Public Policy, Inc. is classified by the IRS as a 501 (c) (3) public charity. Contributions are deductible to the extent allowed by law.
