As a way to save taxpayers an estimated $2.24 billion-$2.6 billion, Senate Majority Leader Mike Bishop (R-Rochester) uncovered a series of 10 reforms in January to restructure and downsize government throughout the state.
One was for elected officials and public workers at all levels to receive a 5 percent pay cut while contributing up to 20 percent for their health insurance.
‘Some may view this as a mean-spirited attack on government, an attempt to address the problems of the economy on the backs of public employees. This couldn’t be farther from the truth,? said Bishop, in a statement posted on the state senate website.
‘Our neighbors, our family members, the people we serve every day are hurting. I am asking that we and all who serve them make some sacrifices so that we may continue to serve the citizens of this fine state and work to reestablish Michigan’s economic vitality.?
The proposal includes all elected officials; all state, county and municipal government workers; and all employees working for public schools and public universities including administrators, teachers and professors.
According to the state Senate website, the pay cut would save an estimated $1.2 billion annually for all levels of government combined. Employee costs make up 75-80 percent of government costs.
How do local officials feel?
Clerk and Treasurer for the City of the Village of Clarkston Jan Gillespie said the five percent pay cut is necessary to ‘stay in business.?
‘But the senators, the representatives, the governor and everybody needs to do that too,? Gillespie said. ‘It starts at the top and works its way down, we just got to stick together and weather the storm.?
Springfield Township Treasurer Jamie Dubre said she felt some sort of contribution toward healthcare was needed.
‘I think the contribution needs to be addressed. We just don’t have that much money anymore,? she said. ‘The days of not paying anything towards hospitalization (are over).?
Dubre noted Springfield currently does not contribute anything to their healthcare, but had gone from a PPO plan to an HMO plan, which has reduced the cost. However, she feels further things can be done to reduce more.
‘It’s hard to ask people to give (toward healthcare) when we haven’t given anymore (raises),? she said. ‘At the same time, that’s what’s going on all over the place.?
Dubre said it’s almost $14,000 added to workers salaries because the township pays for it.
Independence Township Trustee David Lohmeier said on the surface he was not opposed to it, but ‘there are areas where you get less bang for the buck there.?
‘Healthcare, whether it’s 20 percent or not, government employees in general have in general more generous healthcare plan then the average person, so that’s probably one of the biggest opportunities,? he said. ‘I agree philosophically that’s probably where we need to make some adjustments.?
However, Lohmeier wasn’t sure if he agreed with it ‘across the board? or whether they could just make deeper cuts in general.
‘You can do it two ways,? he said. ‘You can bring everybody’s pay down or you can take entire departments and people out.?
This year the Independence Township board took people out and staffed at a minimal level. Lohmeier noted through the ‘bumping process? a lot of employees took a drop in pay.
‘I just don’t like being that broad based about it,? he said. ‘I like being a little more strategic and first look at things you could stop doing that maybe you don’t have enough value you at.?