As part of an on-going dialog with a right-wing, anti-government acquaintance, I recently wrote this collection of myths and facts about California public sector employment from information in two recent Sacramento columns, both cited at the end.  I assume reporting was accurate.  

California Public Employment:  Myths vs. Facts

Submitted by Walt Schafer

Myth:  State government costs have ballooned in recent years relative to the state’s total economy.

Facts:  In 1977 state government consumed 6.6% of the state’s economy.  In 2010 that figure is 5.6%.

Myth:  The number of state employees has grown out of control over time and compared with other states.

Facts: 4o years ago, there were 9.1 state employees per 1000 state residents.  30 years ago, that figure was 9.5.  In the coming year, there will be 8.9 state employees for every 1000 state residents.   In 2008, California ranked fourth lowest among all states in the ratio of state employees to state population (28% below national average)

Myth:  State spending is at an all-time high relative to residents’ earnings.  

Facts: For each $100 Californians earn, the state spends $7.44.  That spending number has been this low only four times in the past three decades.  The cost of general fund programs (e.g., public schools, health, social services) hasn’t been as low as now ($5.19 for each $100 Californians earn) since 1973.

Myth: Public schools and higher education take an ever-growing share of state taxes.

Facts: Now public schools take only slightly more of the state budget (43.6%) as in 1998 (42.7%).   Public universities’ share of the state budget is slightly lower now (7.5%) than in 1998 (8.6%).  Meanwhile, state prisons ‘ share of the state budget has grown from 7% in 1998 to 11% now.

Myth: Welfare is eating up more and more of the state budget.

Facts: Welfare consumed 3% of the state budget in 1998.  That figure now is 2.4%.

Myth: The number of California public employees continues to grow at a faster rate than population growth.

Facts:  Between March 2008 and October 2009, the number of local and state employees declined by 70,000 while population increased by approximately 600,000.

Myth: State employees are not sacrificing like private sector employees.

Facts: Take-home pay for the same job classifications has declined by 44% over the past 15 years for California state employees (adjusting for inflation) as a result of pay cuts, increased medical insurance costs for employees, and furloughs.  Excluding furloughs, the decline has still been 30%.

Myth: State employees in California are no more educated than private sector employees and, hence, should be paid no more than private sector workers.

Facts: Public employees in California are more than twice as likely to hold a college degree or more compared with private sector employees (48% vs. 23%).

Myth: Public employees in California get way more total benefit packages, including pay, than private sector employees.  

Facts: California state and local employees earn less than private sector counterparts even when including retirement, health care, and other benefits.  Specifically, total compensation for public employees is 6.8% lower than for comparable private sector employees.

(Sources:  Dan Morain, Sacramento Bee, 5/13/2010, p. A13. and Peter Brand, Sacramento Bee, 7/06/2010. P. A9))