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))

This post originally appeared at Speak Out California

Republicans like to claim that businesses leave California because of having to pay taxes.

I used to own and run a business, and I have some news for Republicans:  Businesses only pay taxes on profits.  You don’t pay taxes unless you are making a profit.  Paying taxes means you are making a profit.  Making a profit is a good thing, and California businesses pay a small percentage of the profits to the state to help cover the expenses that enabled you to make that profit.

I’m not sure how many different ways I can say it.  You pay taxes after you make a profit.  At the end of the year you add up your revenue and you subtract your expenses and other deductions and then you know what your profit is.

Oh, one more thing for the slower-thinking Republicans out there: profits are a good thing, not a bad thing.  And when you are making a profit the last thing you do is pack up your business and leave behind the circumstances that enabled making that profit.

I understand that Republicans hate government and are enraged by the idea of actually giving something back to the community to help pay for the roads, bridges, courts, police and fire protection, educated citizenry and the other parts of the state’s infrastructure that created the environment that led to the ability to make a profit.  Yes, they hate that.  I understand.

But the fact is that businesses do not pack up and leave when they are making profits.  So if Republicans want to trick people into supporting tax cuts for the big companies that shelled out so much cash put them in office they really do need to come up with better stories than trying to claim that businesses pack up and leave the state because they are making too much profit.

Click through to Speak Out California