Professional Documents
Culture Documents
Research Conducted By
Matthew Marlin, Ph.D., Jonathon Scott, and Kaitlyn Wolf
Duquesne University
July 2010
The Grand Bargain is Dead iii
Table of Contents
8IZĉJT3FQPSU.BĨFSTUP:PV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
&YFDVUJWF4VNNBSZBOE.FOVPG$PTU4BWJOHT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
ĉF3FMBUJWF$PTUTPG0IJP1SJWBUFBOE4UBUF(PWFSONFOU&NQMPZFFT . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
"CPVUUIF"VUIPST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
"CPVUUIF#VDLFZF*OTUJUVUF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Grand Bargain is Dead
By MATT MAYER
0IJP JT GBDJOH BO FTUJNBUFE CJMMJPO CVEHFU "T0IJPHPWFSONFOUHSFXCZPWFS
FNQMPZFFT
EFėDJUGPSėTDBMZFBSTm"TPVSState of the PWFSUIFMBTUUXFOUZZFBST
0IJPTQSJWBUFTFDUPSOFĨFE
State SFQPSUGPVOE
TUBUFHPWFSONFOUXPSLFSTUPEBZ BNFSF
KPCTGSPN+BOVBSZUP.BZ
BSFQBJENVDINPSFUIBOUIFJSQSJWBUFTFDUPSOFJHI- PSKVTUOFUKPCTQFSNPOUIGPS0IJPTNJMMJPO
CPSTJOPVUPGDPVOUJFT8JUIUIJTDPNQSFIFO- citizens.
sive report comparing the median state government ĉFDPSFQSPCMFNJTOPUKVTUUIBU0IJPBEEFEBM-
XPSLFSBOEIFSQSJWBUFTFDUPSQFFS
JUJTDMFBSOPNBU- NPTUPOFOFXHPWFSONFOUKPCGPSFWFSZOFUQSJWBUF
UFSIPXZPVTMJDFJUUIBUUIFUPUBMDPNQFOTBUJPOQBDL- TFDUPSKPC
JUJTBMTPUIBUUIFDPNQFOTBUJPOQBDLBHFT
BHF GPS TUBUF HPWFSONFOU XPSLFST GBS FYDFFET UIFJS PGHPWFSONFOUXPSLFSTIBWFHSPXOJODSFBTJOHMZNPSF
QSJWBUFTFDUPSOFJHICPST
EFTQJUFUIFTJOHMFXPSTUEF- MVDSBUJWFBOEEJTDPOOFDUFEGSPNUIFFDPOPNJDSFBM-
DBEFTJODFUIFTGPSJOWFTUPSTBOEBOFDPOPNZJO JUZPGUIFWBTUNBKPSJUZPG0IJPBOTXIPEPOPUXPSL
TIBNCMFT GPSHPWFSONFOU4JNQMZSFBMJHOJOHTUBUFHPWFSONFOU
ĉJT FOPSNPVT DPNQFOTBUJPO JNCBMBODF DBO- XPSLFS DPNQFOTBUJPO QBDLBHFT UP NBUDI UIPTF PG
OPUCFNBJOUBJOFE
BTJUJTQMBDJOHUPPHSFBUBCVSEFO UIFJS QSJWBUFTFDUPS QFFST XPVME TBWF UBYQBZFST PWFS
POUIFCBDLTPG0IJPUBYQBZFST8IFUIFSZPVSJEFP- CJMMJPOJOUIFOFYUUXPZFBST
XIJDIJTOFBSMZ
MPHJDBMWJFXTDPNFGSPNUIFMFěPSUIFSJHIU
JUJTBO QFSDFOU PG UIF CJMMJPO CVEHFU EFėDJU XF OFFE UP
VOEFOJBCMFGBDUUIBUBWJCSBOUHPWFSONFOUUIBUQSP- FMJNJOBUF
WJEFTOFFEFETFSWJDFTUPWVMOFSBCMFQPQVMBUJPOTBOE *GTUBUFHPWFSONFOUXPSLFSDPNQFOTBUJPOQBDL-
QSPWJEFTPUIFSOFDFTTBSZGVODUJPOTDBOOPUCFNBJO- BHFT BSF OPU UPVDIFE BT QBSU PG BOZ CVEHFU EFėDJU
UBJOFEXJUIPVUBWJCSBOUQSJWBUFTFDUPSUIBUJTDSFBUJOH DPNQSPNJTF
UIFSFJTTJNQMZOPXBZUPCBMBODF0IJPT
KPCTBOEQSPTQFSJUZGSPNXIJDIUBYSFWFOVFTDBOCF CVEHFU XJUIPVU TVCTUBOUJBMMZ SBJTJOH ZPVS UBYFT 8F
derived. UIJOL ZPV IBWF TVĎFSFE FOPVHI BOE JU JT IJHI UJNF
ĉF QSPCMFNT GBDJOH 0IJP UPEBZ MBSHFMZ DBNF HPWFSONFOUXPSLFSTãMBSHFMZJNNVOFGSPNUIFJN-
BCPVUCFDBVTFPVSHPWFSONFOUHSFXCFZPOEUIFSFW- QBDUT PG UIF SFDFTTJPOãTIBSF UIF CVSEFO PG HFĨJOH
FOVFTHFOFSBUFECZBTZTUFNJDBMMZXFBLQSJWBUFTFDUPS 0IJPCBDLPOJUTėTDBMGFFU
The Grand Bargain is Dead 3
UIBOQFSDFOUPGUIFTUBUFHPWFSONFOUXPSLGPSDFã UIFDPTUTBWJOHTSFMBUFEUPUIFTFPQUJPOTGPSUIFNFEJ-
BTTVNJOHBUISFFZFBSIJHIFTUTBMBSZBWFSBHFPGPOMZ BOTUBUFHPWFSONFOUXPSLFSBSFTVCTUBOUJBM%FQFOE-
BOE BO BWFSBHF SFUJSFNFOU PG ZFBSTã JOHPOXIFUIFSTUBUFHPWFSONFOUXPSLFSTDBOSFUJSF
XPVMEUPUBMCJMMJPO BUBHFPSXPSLVOUJMUIFZBSF
UIFDPTUTBWJOHT
4FDPOEMZ
GSPN
UIF OVNCFS PG TUBUF SBOHFGSPN
UP
GPSUBYQBZFST
HPWFSONFOUXPSLFSTXIPXFSFQBJE
PSNPSF ĉFTFPQUJPOTDBOCFFYFDVUFEXJUIPVUBTJOHMF
GPSUISFFPSNPSFZFBSTUPUBMFE
8JUIUIFTFTJY MBZPĎBOEXJUIPVUBOZEJTSVQUJPOJOTFSWJDFT*GBTUBUF
ėHVSFIJHIFTUUISFFZFBSTBMBSJFTUPVTFJOUIFQFOTJPO HPWFSONFOU XPSLFS ėOET UIF FYFSDJTFE PQUJPOT UPP
GPSNVMB
UIFQFOTJPOPCMJHBUJPOPGUIPTFTUBUFHPWFSO- NVDIUPUBLF
IFJT
PGDPVSTF
BCMFUPRVJUBOEBWBJM
NFOUXPSLFSTJTBQQSPYJNBUFMZCJMMJPO"TNPSF IJNTFMGPGCFĨFSPQQPSUVOJUJFTJOUIFQSJWBUFTFDUPS
TUBUFHPWFSONFOUXPSLFSTNJHSBUFUPUIFTFTJYėHVSF (JWFO0IJPTIJHIVOFNQMPZNFOU
UIFSFBSFQMFOUZPG
TBMBSJFT
UIF QFOTJPO PCMJHBUJPO PG UIF
TUBUF NFOBOEXPNFOXIPXPVMEHMBEMZėMMIJTQPTJUJPOBU
HPWFSONFOUXPSLFSTXJMMSFBDIEJ[[ZJOHIFJHIUT5 UIFSFEVDFEMFWFMĉJTSFBMJUZDBOOPUCFGPSHPĨFOBT
.PWJOHTUBUFXPSLFSTGSPNEFėOFECFOFėUQMBOT UIFEFCBUFPOUIJTJTTVFSFBDIFTB[FOJUI
UP EFėOFEDPOUSJCVUJPO QMBOT XPVME TBWF UBYQBZFST ĉFTFDPTUTBWJOHTPOMZGPDVTPOTUBUFHPWFSONFOU
BOE FMJNJOBUF VOGVOEFE QFOTJPO QSPNJTFT .BJO- XPSLFST "EEJUJPOBM TBWJOHT DBO CF GPVOE CZ NBL-
UBJOJOH UIF QFSDFOU FNQMPZFF DPOUSJCVUJPO BOE JOHTJNJMBSDIPJDFTGPSMPDBMHPWFSONFOUXPSLFST
BT
SFEVDJOHUIFUBYQBZFSDPOUSJCVUJPOUPUIFQFSDFOU NBOZPGUIPTFHPWFSONFOUXPSLFSTCFOFėUGSPNUIF
QSJWBUFTFDUPS BWFSBHF
UIF DPNCJOFE DPOUSJCVUJPO TBNFHPMEQMBUFEDPNQFOTBUJPOTZTUFN"TPVS4UBUF
GPSBTUBUFXPSLFSXIPSFUJSFTBUZFBSTPMEXPVME PGUIF4UBUFSFQPSUGPVOE
MPDBMHPWFSONFOUXPSLFST
UPUBM
"TTVNJOH B QFSDFOU ZFBSMZ SFUVSO make more than their private-sector neighbor in 57
PWFSUIFXPSLFSTMJGF
UIFXPSLFSXPVMEIBWFBOFTU PVUPGDPVOUJFT8IFOIFBMUIDBSF
TJDLMFBWF
BOE
FHHPG
UPVTFGPSSFUJSFNFOUĉFXPSLFST QFOTJPOTCFOFėUTBSFBEEFEUPUIFFRVBUJPO
UIFMPDBM
DPOUSJCVUJPOXPVMEFRVBUFUPQFSDFOUPGUIFUPUBM HPWFSONFOUXPSLFSTDPNQFOTBUJPOGBSPVUQBDFTIJT
nest egg. QSJWBUFTFDUPSOFJHICPSTQBDLBHF
"ėOBMXPSEPOUIFDIBMMFOHFTXFGBDFJO0IJP
2012–2013 Potential Total Budget Savings 8IFUIFS UIF CVEHFU EFėDJU JT CJMMJPO
#ZTFMFDUJOH0QUJPOTB
BOE
UIFTUBUF PSCJMMJPO
GVOEBNFOUBMMZ
0IJPTHPWFSONFOUDPTUT
DPVMEDVUBOFTUJNBUFECJMMJPOGSPNUIFOFYUCJ- HSFBUMZ FYDFFE JUT UBY SFWFOVF ĉJT EFėDJU JT OPU B
FOOJBM CVEHFU
XIJDI SFQSFTFOUT SPVHIMZ QFSDFOU %FNPDSBUEFėDJUPSB3FQVCMJDBOEFėDJU
JUJTBEFėDJU
PGUIFQSPKFDUFECJMMJPOCVEHFUEFėDJU*G0QUJPOT DBVTFECZCPUIQBSUJFTXIPXFSFVOXJMMJOHUPLFFQUIF
"BOEBSFUBLFOBOEGVUVSFQBZJTJOEFYFEUPUIF HSPXUIBOEDPTUPGHPWFSONFOUJODIFDLBOEBMMUPP
QSJWBUFTFDUPS HSPXUI QFSDFOUBHF
UIBO FWFO HSFBUFS XJMMJOH UP TQFOE NPOFZ PO HPMEQMBUFE HPWFSONFOU
TBWJOHTBSFQPTTJCMFJOGVUVSFZFBST8JUIBEEJUJPOBM DPNQFOTBUJPO QBDLBHFT BOE QSPHSBNT "OZ FMFDUFE
SFGPSNTUPUIFQFOTJPOTZTUFNWJBPQUJPOTm
UP- PđDJBMXJMMJOHUPMPPLBUUIFEBUBXPVMEIBWFTFFOUIF
UBMHPWFSONFOUXPSLFSDPTUTDPVMECFMPXFSFEFWFO EBSLDMPVETHBUIFSJOHBSPVOE0IJPTQSJWBUFTFDUPSBT
NPSFTJHOJėDBOUMZ GBSCBDLBT
CVUDIPTFJOTUFBEUPKPJOUIFTQFOE-
"TEFNPOTUSBUFEJOUIFUBCMFPOQBHFTBOE
JOHTQSFFPDDVSSJOHBUBMMMFWFMTPGHPWFSONFOU
8JUIUIFQBTTBHFPG0IJPTDPMMFDUJWFCBSHBJOJOHMBXJOUIBUVOJPOJ[FE0IJPTHPWFSONFOUXPSLFST
UIFDPNQFOTBUJPOPG0IJPTHPWFSONFOU
XPSLFSTTLZSPDLFUFE'SPNUIFėSTU0IJP$JWJM4FSWJDF&NQMPZFFT"TTPDJBUJPODPOUSBDUJOUPUIFNPTUSFDFOUMZDPODMVEFEDPOUSBDUJO
UIFZFBSMZQBZJODSFBTFTãOPUJODMVEJOHUIFZFBSMZTUFQJODSFBTFT QFSDFOUmQFSDFOU
BOEUIFZFBSTUPMPOHFWJUZJODSFBTFT QFSDFOUm
QFSDFOU
ãIBWFBWFSBHFEBMNPTUQFSDFOUQFSZFBS"TBSFTVMU
TUBUFHPWFSONFOUXPSLFSTXIPCFHBOUIFJSDBSFFSTJOUIFMBTUZFBSTTUBOEUP
HBJOFOPSNPVTMZBTUIFJSTUBSUJOHQBZTBSFNVDIIJHIFSUIBOUIFJSHPWFSONFOUQFFSJO
XIJDINFBOTUIFJSQFOTJPOBMTPXJMMCFTVCTUBOUJBMMZ
higher.
The Grand Bargain is Dead
ĉPTF QSPĚJHBUF EBZT BSF PCWJPVTMZ PWFS 8JUI NPVTKPCMPTTFT
QBZDVUTBOEGSFF[FT
BOETUBHHFSJOH
UIF UIIJHIFTU TUBUF BOE MPDBM UBY CVSEFO UI JO MPTTFTJOUIFJSSFUJSFNFOUBDDPVOUT5PEBZ
UIFOVNCFS
BOE UIF UIXFBLFTU QSJWBUF TFDUPS PWFS UIF PGQSJWBUFTFDUPSKPCTJO0IJPJTSPVHIMZUIFTBNFBT
MBTUZFBST
UIFSPBEUPSFDPWFSZXJMMOPUCFQBWFE UIFOVNCFSBMNPTUTFWFOUFFOZFBSTBHPJO%FDFNCFS
XJUIIJHIFSUBYFTPOUIFQFSDFOUPG0IJPBOTXIP 4JODF.BZ
0IJPIBTMPTU
QSJWBUF
NBLF VQ UIF NBOBHFST BOE FOUSFQSFOFVST JO XIPTF sector jobs.
IBOET UIF GBUF PG PVS QSJWBUF TFDUPS BOE
UIFSFGPSF
*ODMFBSDPOUSBTU
UIFWBTUNBKPSJUZPGHPWFSONFOU
BCJMJUZUPGVOEHPWFSONFOUSFTUT8JUIBOFTUJNBUFE XPSLFSTIBWFOPUIBEUPFOEVSFBOZQBZDVUTPSGSFF[-
UPCJMMJPOPXFEUPUIFGFEFSBMHPWFSONFOUGPS FTBOEUIFJSQFOTJPOTSFNBJOVOUPVDIFE%FTQJUFUIF
VOFNQMPZNFOU DPNQFOTBUJPO
QBZSPMM UBYFT XJMM HP SFDFTTJPOBOEUIFQBTTJOHPGUIFTJOHMFXPSTUEFDBEF
VQ GPS NBOZ 0IJPBOT 3BJTJOH BEEJUJPOBM UBYFT PO GPSFRVJUJFTPWFSUIFMBTUDFOUVSZ
UIFSFBSFNPSFHPW-
0IJPBOT XJMM POMZ BDDFMFSBUF PVS EFDMJOF
BT NPSF FSONFOUXPSLFST
JO0IJPUIBOBUBOZUJNF
CVTJOFTTFTBOEXPSLFSTXJMMIFBEUPUIFTPVUIFSOBOE JOPVSTUBUFTIJTUPSZ0WFSUIFMBTUUXPZFBST
BTPWFSB
XFTUFSO6OJUFE4UBUFTXIFSFUIFUBYFTBSFMPXFS
UIF UIJSEPGBNJMMJPO0IJPBOTMPTUUIFJSKPCT
0IJPBEEFE
SFHVMBUJPOTBSFNPSFCVTJOFTTGSJFOEMZ
BOEUIFSJHIUT
DPTUMZHPWFSONFOUKPCT
PGXPSLFSTBSFQSPUFDUFE ĉFGBDUPGUIFNBĨFSJTUIBUGSPNUP
0WFSUIFMBTUUXPBOEBIBMGZFBST
0IJPTQSJWBUF 0IJPT QSJWBUF TFDUPS MPTU KPCT JO FJHIU PG UFO ZFBST
TFDUPS XPSLFST IBWF FYQFSJFODFE UIF QBJO PG FOPS- *O .BSDI
0IJP IBE
QSJWBUFTFDUPS
8F IBWF CFFO BTLFE UP DPNQBSF UIF UPUBM DPN- QFSDFOUJMFEJTUSJCVUJPOTGPSCPUITFDUPSTGSPNUP
QFOTBUJPO PG 0IJP TUBUF HPWFSONFOU FNQMPZFFT UP (PWFSONFOU XBHFT BSF TJHOJėDBOUMZ IJHIFS BU
UIBUPGQSJWBUFTFDUPSFNQMPZFFTJOUIFTUBUFĉJTDBO FBDIQFSDFOUJMFBOEJOFBDIZFBS
CFEPOFJOPOFPGUXPXBZTFJUIFSDPNQBSFUIFDPN- 5BCMF$TIPXTUIFBOOVBMXBHFJODSFBTFTGSPN
QFOTBUJPOSFDFJWFECZFNQMPZFFTPSDPNQBSFUIFDPTU UISPVHI ĉF JODSFBTF JO UIF IPVSMZ SBUF
UP UIF FNQMPZFS PG IJSJOH UIF FNQMPZFF #FDBVTF PG GPSUIFNFEJBOQSJWBUFXPSLFSFYDFFEFEUIBUGPSUIF
UIFEJđDVMUZJODPNQBSJOHFNQMPZFFDPNQFOTBUJPO NFEJBOHPWFSONFOUXPSLFSGSPNUPJOBMM
GSPNEFėOFECFOFėUBOEEFėOFEDPOUSJCVUJPOSFUJSF- TVDDFTTJWFZFBSTUIFHPWFSONFOUFNQMPZFFSFDFJWFEB
NFOUQMBOT
UIJTBOBMZTJTDPNQBSFTUIFDPTUUPUIFSF- HSFBUFSBWFSBHFBOOVBMQBZJODSFBTF
TQFDUJWFQVCMJDBOEQSJWBUFTFDUPSFNQMPZFST ĉFNFEJBOXBHFPGHPWFSONFOUKPCEFTDSJQ-
5PUBM DPNQFOTBUJPO JT FTUJNBUFE BT UIF TVN PG UJPOTUIBUQBJEBUPSOFBSUIFHPWFSONFOUXBHF
CBTF XBHFT
FNQMPZFS QFOTJPO DPOUSJCVUJPOT
FN- (8
NFEJBOBSFTIPXOJO"ĨBDINFOU"5BCMF
QMPZFSIFBMUIJOTVSBODFQSFNJVNDPOUSJCVUJPOT
BOE TIPXT B USVODBUFE TFU PG UIPTF KPC EFTDSJQUJPOT GPS
FNQMPZFS QBZNFOUT GPS TJDL MFBWF 0UIFS FNQMPZFS XIJDI UIFSF BSF DPNQBSBCMF KPC EFTDSJQUJPOT JO UIF
QBJECFOFėUT
TVDIBTMJGFBOEEJTBCJMJUZJOTVSBODF
BOE QSJWBUFTFDUPSBMPOHXJUIUIFDPNQBSBUJWFIPVSMZSBUF
HPWFSONFOUNBOEBUFEQBZNFOUTGPS4PDJBM4FDVSJUZ "TTIPXO
UIFHPWFSONFOUXBHFGPSFBDIKPCDBUFHP-
BOE VOFNQMPZNFOU DPNQFOTBUJPO BSF PNJĨFE 'J- SZXBTDPOTJTUFOUMZBOETJHOJėDBOUMZHSFBUFSUIBOUIF
OBMMZ
JUTIPVMECFOPUFEUIBUOPFTUJNBUFJTPĎFSFEBT DPSSFTQPOEJOHQSJWBUFXBHF 18
UPUIFHSFBUFSKPCTFDVSJUZBĎPSEFEUPUIPTFFNQMPZFE
CZUIF4UBUF"MUIPVHIOPURVBOUJėFE
JUNVTUCFSFD- B. Benefits
PHOJ[FEUIBUTVDIKPCTFDVSJUZEPFTIBWFSFBMFDPOPN- 1. Retirement
JDWBMVF &NQMPZFF CFOFėUT BSF CFDPNJOH BO JODSFBT-
JOHMZ JNQPSUBOU QPSUJPO PG UIF UPUBM DPNQFOTBUJPO
A. Wages—Percentile Distributions FBSOFE CZ "NFSJDBO XPSLFST ĉF UXP NPTU JNQPS-
#BTFE PO B TBNQMF PG
BDUVBM KPCT
UIF UBOUCFOFėUTBSFQFOTJPOSFUJSFNFOUQMBOTBOENFEJ-
NFEJBO UI QFSDFOUJMF
TUBUF HPWFSONFOU XBHF JO DBMJOTVSBODFĉFTUBUFPG0IJPPĎFSTJUTFNQMPZFFT
0IJP JO XBT QFS IPVS PS
QFS BEFėOFECFOFėUQFOTJPOQMBOBUBDPTUPGQFSDFOU
ZFBSĉFNFEJBOQSJWBUFTFDUPSXBHFJO0IJPJO PGUIFFNQMPZFFTFBSOJOHT'PSUIFiNFEJBOTUBUFFN-
XBT QFS IPVS PS
QFS ZFBS CPUI BO- QMPZFF
uUIJTFRVBMFE
QFSZFBSJO
OVBMSBUFTCBTFEPO
IPVSTQFSZFBS
7 The dif- "DDPSEJOH UP UIF #VSFBV PG -BCPS 4UBUJTUJDT
GFSFODF CFUXFFO UIF UXP XBHF TDBMFT JT
QFS QFSDFOUPGQSJWBUFTFDUPSXPSLFSTIBEBEFėOFECFO-
ZFBS5BCMFT"BOE#TIPXUIFIPVSMZBOEBOOVBM FėU SFUJSFNFOU QMBO BOE QFSDFOU IBE B EFėOFE
"OOVBMEBUBQSPWJEFECZUIF4UBUFPG0IJPGPSBMMFNQMPZFFT
UISPVHI)PVSMZSBUFTMFTTUIBOUIPTFTUJQVMBUFEJODPMMFDUJWFCBSHBJOJOH
BHSFFNFOUTGPSUIFSFTQFDUJWFZFBSTXFSFFYDMVEFEGSPNUIFTBNQMFT4VDIKPCTXFSFQSJNBSJMZJOUFSOTIJQT
MJGFHVBSET
FUD1SJWBUFTFDUPSEBUBXBT
PCUBJOFEGSPNUIF6OJUFE4UBUFT%FQBSUNFOUPG$PNNFSDF
#VSFBVPG4UBUJTUJDT
BUhttp://www.bls.gov/oes/oes_dl.htm +VOF
THE BUCKEYE INSTITUTE
PRIVATE GOVERNMENT
10th 25th 50th 75th 90th 10th 25th 50th 75th 90th
2003 $10.56 $13.11 $16.23 $20.56 $24.61 $14.26 $16.08 $19.08 $26.19 $33.95
2004 $10.79 $13.44 $16.88 $21.31 $25.96 $14.26 $16.00 $18.88 $25.74 $33.66
2005 $10.81 $13.70 $16.97 $21.43 $26.00 $14.70 $16.64 $19.55 $26.80 $34.97
2006 $10.97 $13.55 $17.38 $22.07 $26.88 $15.27 $17.14 $20.13 $27.42 $36.24
2007 $11.28 $14.11 $18.04 $22.95 $27.45 $16.00 $18.21 $21.80 $30.05 $38.05
2008 $11.64 $14.46 $18.33 $23.80 $28.75 $16.60 $19.06 $22.84 $31.70 $39.38
PRIVATE GOVERNMENT
10th 25th 50th 75th 90th 10th 25th 50th 75th 90th
2003 $21,965 $27,269 $33,758 $42,765 $51,189 $29,661 $33,446 $39,686 $54,475 $70,616
2004 $22,433 $27,945 $35,110 $44,314 $53,986 $29,661 $33,280 $39,270 $53,539 $70,013
2005 $22,474 $28,486 $35,298 $44,574 $54,080 $30,576 $34,611 $40,664 $55,744 $72,729
2006 $22,807 $28,184 $36,150 $45,907 $55,900 $31,762 $35,651 $41,870 $57,034 $75,379
2007 $23,452 $29,349 $37,523 $47,736 $57,096 $33,280 $37,877 $45,344 $62,504 $79,144
2008 $24,211 $30,077 $38,126 $49,504 $59,800 $34,528 $39,645 $47,507 $65,936 $81,910
PRIVATE GOVERNMENT
10th 25th 50th 75th 90th 10th 25th 50th 75th 90th
2004 2.13% 2.48% 4.00% 3.62% 5.47% 0.00% -0.50% -1.05% -1.72% -0.85%
2005 0.19% 1.94% 0.53% 0.59% 0.17% 3.09% 4.00% 3.55% 4.12% 3.88%
2006 1.48% -1.06% 2.42% 2.99% 3.37% 3.88% 3.00% 2.97% 2.31% 3.64%
2007 2.83% 4.13% 3.80% 3.98% 2.14% 4.78% 6.24% 8.30% 9.59% 4.99%
2008 3.24% 2.48% 1.61% 3.70% 4.74% 3.75% 4.67% 5.00% 5.49% 3.50%
The Grand Bargain is Dead
$60,000
$30,000
$38,126
$30,077
$20,000
$24,211
$10,000
0
2003 2005 2007 2003 2005 2007 2003 2005 2007 2003 2005 2007 2003 2005 2007
2004 2006 2008 2004 2006 2008 2004 2006 2008 2004 2006 2008 2004 2006 2008
DPOUSJCVUJPO L
State Job Code Description Hourly Comparative Private Job Description Hourly
Rate (SOC Code in parenthesis) Rate
CFMJFWFEUPCFSFBTPOBCMFBTTVNQUJPOTGPSUIFHPWFSO- r 1FOTJPODPTUTXJMMSFNBJOBUQFSDFOUPGXBHFT
NFOUFNQMPZFF r )FBMUI JOTVSBODF DPTUT XJMM JODSFBTF BU QFS-
r 6TJOHUIFBMUFSOBUJWFTQSFTFOUFEJO5BCMF
UIF DFOUQFSZFBS
FNQMPZFFJTFJUIFSBOBVUPNPUJWFUFDIOJDJBOPSBMJ- r $PTUTPGTJDLQBZXJMMSFNBJOBUUIFTBNFQFS-
DFOTFEQSBDUJDBMOVSTF1BZ(SBEFBOE4UFQ "D- DFOUBHF QFSDFOU
PGXBHFTBTUIFZBTUIFZXFSFJO
DPSEJOH UP UIF DPMMFDUJWF CBSHBJOJOH BHSFFNFOU
UIF
ėSTUTUFQJO1BZ(SBEFXBTQFSIPVSJO
r ĉFFNQMPZFFXJMMXPSLUPBHF "MUIPVHI
BOEUIJTXBTJODSFBTFECZQFSDFOUJO
QFS- VOMJLFMZ GPS B HPWFSONFOU FNQMPZFF XIP DBO SFUJSF
DFOUJO
BOEQFSDFOUJOĉFėSTUTUFQ XJUI B GVMM QFOTJPO BěFS ZFBST
UIJT BMMPXT GPS B
4JNJMBSBOBMZTFTGPVOEUIBUQVCMJDTFDUPSFNQMPZFFTJO.JDIJHBOFBSOFEQFSDFOUNPSFUIBOQSJWBUFFNQMPZFFTBOEUIBUGFEFSBMHPWFSONFOU
FNQMPZFFTFBSOFEQFSDFOUNPSFUIBOQSJWBUFFNQMPZFFT4FF.BDLJOBD$FOUFSGPS1VCMJD1PMJDZ
i%JNJOJTIJOH1SJWBUF4FDUPS,FFQT
4VQQPSUJOH#MPBUFE1VCMJD#FOFėUT
uBUhttp://www.mackinac.org/10839 +VOF
BOEiĉF(PWFSONFOU1BZ#PPN
uĉF8BMM4USFFU
+PVSOBM
.BSDI
m-POHFWJUZ1BZ#FHJOOJOHPOUIFėSTUEBZPGUIFQBZQFSJPEXJUIJOXIJDIBOFNQMPZFFDPNQMFUFTėWF
ZFBSTPGUPUBMTUBUFTFSWJDF
FBDI
FNQMPZFFXJMMSFDFJWFBOBVUPNBUJDTBMBSZBEKVTUNFOUFRVJWBMFOUUPPOFIBMGQFSDFOU QFSDFOU
UJNFTUIFOVNCFSPGZFBSTPGTFSWJDFUJNFT
UIFėSTUTUFQPGUIFQBZSBUFPGUIFFNQMPZFFTDMBTTJėDBUJPOVQUPBUPUBMPGUXFOUZ
ZFBSTĉJTBNPVOUXJMMCFBEEFEUPUIFTUFQSBUFPGQBZ
$POėSNFECZ0IJP%FQBSUNFOUPG"ENJOJTUSBUJWF4FSWJDFT1BZSPMM-FĨFS
+VOF
"DDPSEJOHUPUIF,BJTFS'BNJMZ'PVOEBUJPO
GBNJMZJOTVSBODFQSFNJVNTIBWFJODSFBTFECZBOBWFSBHFQFSDFOUQFSZFBSTJODF4FFhttp://
www.kff.org/insurance/index.cfm +VOF
THE BUCKEYE INSTITUTE
DPNQBSJTPOXJUIBQSJWBUFTFDUPSFNQMPZFFXIPXJMM XBHFTXJMMJODSFBTFBUUIJTSBUFCFHJOOJOHJO
CFFMJHJCMFGPSGVMM4PDJBM4FDVSJUZCFOFėUTBUBHF
r 1FOTJPOSFUJSFNFOUDPTUTXJMMSFNBJOBUQFS-
5BCMF"TIPXTUIFQSPKFDUFEMJGFUJNFDPTUGPSUIF DFOUPGXBHFT
NFEJBOTUBUFFNQMPZFFJTBQQSPYJNBUFMZ
r )FBMUI JOTVSBODF DPTUT XJMM JODSFBTF BU QFS-
SPVOEFEUPUIFOFBSFTU
%JTDPVOUFEUPQSFT- DFOUQFSZFBS
FOU WBMVF DVSSFOU EPMMBST
BU QFSDFOU
UIF DPTU JT r $PTUTPGTJDLQBZXJMMSFNBJOBUUIFTBNFQFS-
5BCMF#
DFOUBHF QFSDFOU
PGXBHFTBTUIFZBTUIFZXFSFJO
2. Private Employee
ĉF GPMMPXJOH BSF CFMJFWFE UP CF SFBTPOBCMF BT- r ĉFFNQMPZFFXJMMXPSLUPBHF
TVNQUJPOTGPSUIFQSJWBUFFNQMPZFF 5BCMF " TIPXT UIF QSPKFDUFE MJGFUJNF DPTU GPS
r ĉF ėSTU TUFQ BTTVNFE GPS UIF HPWFSONFOU UIFNFEJBOQSJWBUFTFDUPSFNQMPZFFJTBQQSPYJNBUFMZ
FNQMPZFF
JT QFSDFOU PG UIF NFEJBO
%JTDPVOUFEUPQSFTFOUWBMVF DVSSFOUEPM-
HPWFSONFOUFNQMPZFFXBHFJOĉFTBNFQFS- MBST
BUQFSDFOU
UIFDPTUJT
5BCMF#
DFOUBHFJTBQQMJFEUPUIFQSJWBUFFNQMPZFF Y Total Lifetime Cost Differences
#BTFE PO UIF BCPWF BTTVNQUJPOT
PWFS UIF FN-
r ĉFFNQMPZFFCFHJOTXPSLJOBUBHF QMPZFFTXPSLMJGFUISPVHIBHFUIFDPTUPGUIFiUZQJ-
r .FEJBOQSJWBUFFNQMPZFFXBHFTJODSFBTFEGSPN DBMuTUBUFFNQMPZFFXJMMCF
NPSFUIBOUIBU
QFSIPVSJOUPQFSIPVSJO
PGBUZQJDBMQSJWBUFFNQMPZFF 5BCMF"
%JTDPVOUFE
BOBOOVBMJODSFBTFPGQFSDFOU*UJTBTTVNFEUIBU UPQSFTFOUWBMVF
UIFEJĎFSFODFJT
5BCMF
The Grand Bargain is Dead
#
*OFBDIDBTFUIFTUBUFFNQMPZFFDPTUNPSFUIBO TFDUPS FNQMPZFF PWFS ZFBST JT BCPVU
UXJDFBTNVDIBTUIFQSJWBUFTFDUPSFNQMPZFF 8IFO EJTDPVOUFE UP QSFTFOU WBMVF 5BCMF #
UIF
DPTUJT
Lifetime Costs (30 Years Service)
Government Employee Total Lifetime Cost Differences
#FDBVTF TUBUF FNQMPZFFT DBO SFUJSF XJUI B GVMM #BTFE PO UIF BCPWF BTTVNQUJPOT
PWFS UIF FN-
QFOTJPOFRVBMUPQFSDFOUPGUIFJSėOBMTBMBSZ
NPTU QMPZFFTXPSLMJGFPGZFBSTUIFDPTUPGUIFiUZQJDBMu
TUBUF FNQMPZFFT XJMM OPU XPSL UP BHF 5BCMFT " TUBUFFNQMPZFFXJMMCF
NPSFUIBOUIBUPG
VOEJTDPVOUFE
BOE# EJTDPVOUFEQSFTFOUWBMVFT
BUZQJDBMQSJWBUFFNQMPZFF 5BCMF"
%JTDPVOUFEUP
TIPX UIF FTUJNBUFE DPTU PG FNQMPZJOH TPNFPOF GPS QSFTFOUWBMVFUIFEJĎFSFODFJT
5BCMF#
*G
ZFBST"TTIPXO
UIFDPTUPGUIFHPWFSONFOUFN- OPUEJTDPVOUFEUIFHPWFSONFOUFNQMPZFFDPTUTKVTU
QMPZFF JT BCPVU
8IFO EJTDPVOUFE UP BCPVUUXJDFBTNVDIBTUIFQSJWBUFTFDUPSFNQMPZFF
QSFTFOUWBMVFUIFDPTUJT
8IFO EJTDPVOUFE UIF HPWFSONFOU FNQMPZFF DPTUT
Private Employee BCPVU QFSDFOU NPSF UIBO UIF QSJWBUFTFDUPS FN-
"T TIPXO JO 5BCMF "
UIF DPTU PG UIF QSJWBUF QMPZFF
State Job Code Description Hourly Rate State Job Code Description Hourly Rate
Administrative Assistant 2 $22.81 Librarian 1 (Non-Degreed) $22.84
Administrative Secretary $22.86 Licensed Practical Nurse $22.82
Executive Secretary 2 $22.81 Paralegal/Legal Assistant 1 $22.81
Administrative Staff $22.85 Penal Workshop Superintendent $22.81
Automotive Technician $22.83 Qualified Mental Retard Profes $22.84
Building Maintenance Supt 1 $22.81 Radio Technician 2 $22.83
Correction Lieutenant $22.84 Records Management Supervisor $22.81
Correctional Commissary Mgr $22.81 Residential Care Supervisor 1 $22.81
Correctional Food Srvc Mgr 1 $22.81 Restoration Mason $22.83
Crime Victims' Claims Investig $22.84 Tax Auditor Agent 1 $22.86
Enforcement Agent $22.83 Transportation Manager 1 $22.86
Human Capital Mgt Analyst $22.86 Word Processing Supervisor 2 $22.81
Judicial Employee $22.85
$420,027
$400,000 in 2054
(Cumulative
State Cost: $8.84
Employees million)
$300,000 The cost of the median
state worker after
22 years exceeds the
cost of the median
$200,000 private sector worker
after 45 years. $168,370
$173,379 in 2054
(Cumulative
$100,000 Cost: $3.99
Private million)
Employees
0
2010 2015 2020 2025 2030 2035 2040 2045 2050 2054
The Grand Bargain is Dead
¥CZĉF#VDLFZF*OTUJUVUFGPS1VCMJD1PMJDZ4PMVUJPOT
&BTU#SPBE4USFFU
4VJUF
$PMVNCVT
0IJP
rXXXCVDLFZFJOTUJUVUFPSH
THE GRAND BARGAIN IS DEAD
Matt Mayer, Matthew Marlin, Jonathon Scott, and Katilyn Wolf
#6$,&:&*/45*565&4$0..*5.&/55026"-*5:4$)0-"34)*1
ĉF#VDLFZF*OTUJUVUFGPS1VCMJD1PMJDZ4PMVUJPOTJTEFEJDBUFEUPQSPWJEJOH0IJPBOTXJUITVQFSJPSRVBMJUZBOE
EFQFOEBCMFSFTFBSDIPOQVCMJDQPMJDZJTTVFT8FHVBSBOUFFUIBUBMMGBDUVBMTUBUFNFOUTBOEEBUBVTFEJOPVSQPMJDZ
SFQPSUT
QPMJDZCSJFGT
WJFXQPJOUT
BOEPUIFSSFTFBSDIQSPEVDUTBSFBDDVSBUF
BOEJOGPSNBUJPOBĨSJCVUFEUPPUIFS
TPVSDFTJTUSVUIGVMMZSFQSFTFOUFE
"TBQBSUPGPVSDPNNJUNFOUUPRVBMJUZ
XFXFMDPNFSFWJFXBOEDSJUJRVFTPGPVSXPSL*GBDPODFSOBCPVUUIFBD-
DVSBDZJTCSPVHIUUPUIF#VDLFZF*OTUJUVUFTBĨFOUJPOXJUITVQQPSUJOHFWJEFODF
XFXJMMSFTQPOEJOXSJUJOH*GBO
FSSPSFYJTUT
UIF#VDLFZF*OTUJUVUFXJMMJTTVFBOFSSBUBTIFFUUIBUXJMMBDDPNQBOZBMMTVCTFRVFOUEJTUSJCVUJPOTPGUIF
QVCMJDBUJPO
XIJDIDPOUJOVFTUIFDPNQMFUFBOEėOBMSFNFEZVOEFSUIJTHVBSBOUFF