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Iowans For Tax Relief: Agreement is a good first step, but it does not fix the real problem
12/1/2009

Contact: Katie Koberg, (563) 288-3600 or kkoberg@taxrelief.org




Yesterday, the Iowa state employee union approved the agreement offered by Governor Culver for a short-term employee pay reduction for the next seven months instead of laying off over 750 workers in Iowa.

Ed Failor, Jr., President of Iowans for Tax Relief, said today, "Governor Culver and the state employee unions agreement to keep more Iowans employed is good news for Iowa taxpayers. Yet, Governor Culver's solution is just another short-term reactionary measure. In seven months these same workers will be eligible for a union negotiated pay raise."

"All this agreement does is move the problem out for another seven months. It is like putting a band-aid on an infected cut and saying it is healed. Instead of treating the actual problem; cleaning the wound, administering antiseptic, and allowing time to heal, Governor Culver just moved the real issue out until next year," Failor continued.

It is unfortunate the temporary pay reduction does not do anything to correct the substantial pay gap between Iowa state employees and Iowans in the private sector. According to the U.S. Department of Labor, Bureau of Labor Statistics, the average annual wages for Iowa private sector workers is $35,256. In the state government sector, average annual wages are $51,688.

The long term solution to keep Iowans employed and bring in new workers is, in part, to bring state employee salaries in line with the private sector. Iowa has a substantial gap between private and public sector pay, and Iowans for Tax Relief proposed a five-percent pay cut for all state employees to close the gap a bit. Read it here and our other budget savings opinions here.

Failor continued, "Taxpayers need Governor Culver to go back to the bargaining table, reopen the current contract, cut the salary increases for next year, and bring state worker salaries in line with those in Iowa's private sector. We need to heal the wound, not just apply a new band-aid month after month."


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