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Opinion editorials Handling of Pit Appeal Calls for a Time-Out |
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opinion editorialsThis editorial first appeared in the Albuquerque Journal. It was written by editorial page staff and is unsigned as it represents the opinion of the newspaper rather than the writers
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Saturday, February 28, 2009
Bad Times Can't Spare Big N.M. Government
When we go beyond a balance sheet and talk about real people — friends, relatives, neighbors — nobody wants them to have to absorb a pay cut, a benefit reduction or, worse yet, a job loss. But when we look at the overall economic picture and the burgeoning level of state spending on government workers, it's hard to reconcile A with B.
A state personnel reports says New Mexico has more state workers than ever and they make considerably more than ever. The state's gross annual payroll is on track to blow past $1 billion, and the general fund budget is up more than 50 percent since Gov. Bill Richardson took office.
According to the Rio Grande Foundation, a conservative think tank, there were 164,702 local and state government workers in New Mexico in 2007 (that's 24.5 for every 100 in the private sector, higher than the national average of 16.22) and on average they made more a year than their private-sector counterparts ($45,516 compared to $41,669.)
House Minority Whip Keith Gardner, R-Roswell, says "we've tried to employ ourselves to wealth in state government." Sen. John Arthur Smith, D-Deming and chairman of the Senate Finance Committee, says the state faces a structural deficit into the foreseeable future with recurring expenses outpacing recurring revenues and any fix will likely mean cutting the payroll.
Wall Street got drunk on mortgages, New Mexico on oil and gas royalties. Then the bottom fell out.
Given the sorry state of things, it's not very likely that you could hold one of the largest employers and its employees harmless as New Mexico tries to balance a budget with an estimated $500 million shortfall — at the same time most New Mexicans without a government gig take a pay cut, lose a retirement benefit or spend the afternoon applying for unemployment.
But that's what government and its unions would have happen.
The governor's spokesman says it's "dishonest" to blame state employee payroll growth for "something that is happening in every state and many businesses around the world." Faced with a proposed modest increase in the employee pension contribution, leaders of the union that represents state workers say cutting spending shouldn't be the state's only budget focus and recommend tax increases as revenue sources. The head of the Albuquerque teacher's union says there's a better way than asking employees to kick in an extra $20 a check to their pension fund.
Tell it to the 800 people laid off at Eclipse Aviation or the 230 who worked the mine in Questa or the 150 who saw the garage doors shut at Zangara Dodge.
When people talk about other sources of revenue, they usually mean tax hikes. It's possible some will be needed, though they further suppress the economy. Rep. Lucky Varela, D-Santa Fe, says slightly higher pension contributions might help prevent unpaid furloughs for state workers. Layoffs can't be off the table. But surely the modest step proposed is a better choice if it helps limit state job losses to attrition.
Government workers are not to blame. They got hired and they do their jobs. But there is no way to spare this big of group from what President Obama says will be sacrifices required of us all.
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