Resolution to Align Pay and Benefits of Public Sector Workers with Private Sector Workers

 Resolution to Align Pay and Benefits of Public Sector Workers with Private Sector Workers

Model Resolution

WHEREAS, states will have faced $296.6 billion in budget gaps between fiscal year 2009 and fiscal year 2012, and

WHEREAS, states will face $127.4 billion in budget gaps for the remainder of fiscal 2010, fiscal 2011, and fiscal 2012, and

WHEREAS, the U.S. Supreme Court has ruled it permissible for states to modify contractual obligations for a significant and legitimate public purpose, such as the remedying of a broad and general social or economic problem

WHEREAS, states face approximately $3 trillion in unfunded pension obligations, which threaten in some jurisdictions their ability to provide essential government services within a tax level suitable to the general welfare

WHEREAS, the total compensation costs per hour worked for states and local government employees is 43.6 percent higher than the total compensation costs for private sector workers, and

WHEREAS, state and local government workers received $8,862 more per year than that of private workers in pay and benefits, and

NOW THEREFORE BE IT RESOLVED that the legislature of the state of {insert state}: will oppose any tax increase at the state level, until all levels of state government have evaluated their current compensation and hiring practices to align them with those in the private sector.

BE IT FURTHER RESOLVED, that {insert state} on record as opposing any form tax increase in this time of historic budget gaps before addressing the excessive amount of pay government workers receive in comparison to workers in the private sector.

BE IT FURTHER RESOLVED, accrued retirement benefit obligations to all state and municipal workers shall be immediately adjusted to a level comparable to that of private sector workers for positions of comparable responsibility and direct compensation.  Such adjustments shall be calculated by an independent review panel appointed by and answerable to the state [Comptroller] and, due to inherent conflicts of interest, sole jurisdiction for judicial review of such adjustments shall vest in the appropriate federal court and not the courts of the state. The Legislature directs the state [Comptroller] to eliminate from calculation all abusive practices such as, without limitation, use of overtime provisions to increase the compensation base against which retirement benefits may be calculated.

Approved by the ALEC Board of Directors, January 7, 2011.

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