Policy Blog

Philosophy 101 was one of those classes that most college students loved or hated. For me the class was interesting. I remember some of what I learned in that class, however, I can't say it shaped my academic career or changed my life. What did make a significant impact upon me was a non-philosophical ad-hoc discussion about the "reasonable person" theory. I incorporated it into my life and I have used it often ever since.

The "reasonable person" theory says that when all else fails - philosophy, psychology or any number of management thoughts - one has to ask oneself what a reasonable person would do in such a situation. Hence, what would the guy on the street do if he or she were in a similar situation? Normal everyday people make the best decision they can based upon past experience and their own mental abilities.

Recently I have been concerned about the price of government - that is to say unless governments have a tax windfall, most of them will have some reckoning in their future. No amount of philosophy, psychology or even management theory will save them unless they take a common sense approach and slow down the spending spree. But on what are they actually spending so much money? Nationally, as we all know, wars and entitlements are driving costs through the roof. At the state levels revenue shortfalls, employee benefits, pensions, and entitlements have wreaked havoc in state budgets. Locally, revenue shortfalls, health care and even pensions have overwhelmed the system.

Blame is in the eye of the beholder - some say politicians haven't adequately funded the retirements or taxed the population; others believe that unionized public sector employees have been too successful. To be sure, the public sector is now more highly paid and their benefits are super-sized compared to the private sector. According to Forbes Gilt-Edged Pensions from February 16, 2009, a police officer's pension could cost upwards of $2 million dollars considering heath benefits, cost of living raises and so forth if he or she lives to 78 years old. The Wall Street Journal published The Government Pay Boom on Friday March 26, 2010, which reported that state and local public employees outstripped private employees by making an average $39.66 total compensation per hour verses the total private compensation of $27.42 per hour. To be sure, there is plenty of blame to go around.

However, this is not to say public sector employees are not worth what we pay them. In Duluth, I have yet to deal with a publicly employed person that I could say was less than helpful or didn't do his or her job well. In fact, I am downright impressed with those who I have come into contact with. We can be proud of our city, county and school district employees. They work hard, and I am happy that they have a good life as a result of a good paying job.

Given the paradigms outlined above, what, then, is the problem other than we have a lack of adequate revenue to meet our stated expenses? The answer to that of course is varied - some say cut expenses while others say we ought to raise revenue. The answers are different depending upon your point of view. And these problems did not just appear last weekend. They are complex, loaded with politics, and not easily solvable.

As an example, the Duluth News Tribune recently reported one utility employee to have made approximately $128,000 in a single year. This employee made a great portion of that money in overtime pay. The employee is not to blame. He was just doing his job as described in a union contract. You or I may well have responded in a similar manner to such incentives. In fact, I would have been disappointed had he not had the initiative to earn as much as possible. Cumulatively the city pays in excess of $3 million dollars annually in overtime alone. Yet, without overtime it is doubtful we would have the level of services we are provided.

The Chamber understands the complex nature of the problems, and we are seeking to untangle how we have arrived at such a point. This includes looking into the work rules that determine overtime, scheduling and so forth. If simpler and more reasonable rules could help alleviate the problem we may all be better off. We do know that the task will not be easy, but given a sense of "reasonableness" it will be a start.

At the FORVM, Tuesday, May 4th at 8:00 AM in the Playground Theater, we have invited City Councilors Jim Stauber (a long time critic of overtime) and Todd Fedora (a councilor given to detail) to be guests. We have also invited Chief Administrative Officer David Montgomery, the person at City Hall responsible to oversee all employees. At the FORVM we'll seek to begin understanding the problems and begin to formulate some suggestions that might serve as a basis for resolution.

We are committed to a reasonable and respectful discussion at the FORVM. You are invited to attend and have your voice heard.

See you at the FORVM.
Andy


**The FORVM is intended to educate, generate ideas, and offer positive solutions. Public employee bashing will not be tolerated.