Tuesday, November 30, 2010

About Those Federal Pay Freezes...


From Talking Points Memo:

Everyone Hates Obama's Pay Freeze Plan... Except Republicans

The early reviews of President Obama's plan to freeze federal worker pay are in -- and it gets a resounding "F" from just about everybody outside of GOP leadership.

Michael Linden, a budget expert at the liberal Center for American Progress, said the plan is small potatoes that risks driving away valuable civil servants with little budgetary upside.

"Bluntly doing it this way, we risk cutting off our nose to spite our face," Linden said in a phone interview. "We risk not hiring good people, we risk not giving a raise to people who deserve a raise, and we miss not cutting the pay of those who deserve a pay cut."

Linden recalled similarities between the plan Obama announced today and his previous call at an earlier political low point for a discretionary spending freeze.

"Both are sort of blunt instruments for reducing the deficit that don't reduce the deficit very much," Linden said. "The pay freeze is actually much smaller than the discretionary spending freeze," in budget terms.

If enacted, the proposal will disproportionately impact middle-income earners.
...
Honestly, it's hard for me to get very worked up over them.

In theory, of course, they are bad idea for a lot of reasons:
  • The amount of dough you save is minuscule relative to the deficit you are trying to pay down.

  • Using it as a bargaining chip makes sense only if you get something in return.

  • Asking middle class workers -- which most federal employees emphatically are -- to take one for the team while at the same time Wall Street banksters are back to doing wheelbarrows of coke paid for with the Bailout Bonuses which those same middle class workers are underwriting with their tax dollars is, well, I don't have a font big enough to spell out "Amazingly Stupid" and "Gratuitously Insulting" large enough to do it justice.

  • Every time you offhandedly screw over government workers to make some trivial political point, you reinforce the ugly wingnut meme that government workers are lazy, featherbedding, SEIU thugs so fuck 'em!

  • Solidarity!

Yeah, I get it.

However that is theory.

In practice, most government workers I know do not work for the Fed.

They work for other units of government -- the state, the city, the county, school systems, one transit authority or another, etc. -- all of which (like the Fed) have large deficits relative to their annual budgets.

They work very hard.

And for about the last three years, the various units of government for which they work have been a whiplashing blizzard of layoffs:

Chicago Community College Budget Calls for Hundreds of Layoffs
Alex Keefe Jul. 29, 2010

Hundreds of non-teaching staff members could be laid off under the new budget proposal for Chicago's community college system.

Next year's budget for City Colleges of Chicago could fund 311 fewer positions, some through attrition.

But that could include 225 non-teacher layoffs.

Chancellor Cheryl Hyman they would affect administrators, as the district tries to consolidate some workers from its seven colleges.

And...
New Chicago Public Schools Budget: Layoffs, Furlough Days, And Larger Class Sizes To Make Ends Meet

Chicago Sun-Times | Fran Spielman | 04/16/09

About 1,200 city school workers will receive layoff notices this week, and principals will begin sharing the budget pain via pay freezes and six furlough days, as Chicago Public Schools officials move today to plug their remaining $370 million deficit.
pay freezes...
"As outlined in the preliminary budget, the City will continue to generate $70 million in savings next year through union agreements and the extension of unpaid holidays and furloughs for non-union employees. Additionally, non-union employees will not receive a cost-of-living increase in 2010 for a savings of $6 million."
hiring freezes...

"Among many steps to balance the budget Daley said the City will...continue the freeze on non-safety hiring, which has been in effect since 2008, saving an estimated $20 million in 2011."

benefit cuts and unpaid furlough days.

Daley plans new round of furlough days, wage freeze
October 19, 2009

In an effort to save money next year, Mayor Richard Daley today said he will order non-union employees to take off 24 days without pay next year and won't give them cost-of-living raises, saving $26 million.

Also, to make up for these massive loses in productive capacity, the workloads of those who survive the periodic decimations have effectively doubled. No one will say it out loud of course, and the City, at least, has very strict public policies about working on furlough days, but everyone knows (wink/wink) what is expected of them, and everyone knows what the consequences are if the ever-rising tide of work does not get done to the Hall's satisfaction.

In better times, budget gnomes can play lots of complex games with various funding sources and accounting tricks to meet legal requirements while insulating management from taking any real hits by make positions appear and disappear like virtual particles. But these are not better time, and at least at the City, everyone from Fifth Floor down to the shoeshine guys in the lobby knows the situation is Very Fucking Bad -- worse than it has ever been -- and is only going to go sharply downhill from here.

(Except of course if you are in The Club --
clout_club3


From the Sun-Times:

Connected city worker spared in merger, layoffs
Never knew she had clout, Special Events director says

October 22, 2010

BY FRAN SPIELMAN City Hall Reporter

Clout apparently still counts in City Hall jobs -- despite Mayor Daley's promise to implement a personnel system free of politics in the wake of a hiring scandal that cost taxpayers $12 million to compensate victims of the city's rigged hiring system.

The wife of a former Democratic ward boss -- who also happens to be the daughter-in-law of a former alderman -- has survived a departmental merger that will eliminate 13 jobs and force nine layoffs.

Maureen Volini was a $73,752 administrative services officer for the Mayor's Office of Special Events.

Now that Daley's final budget is merging Special Events with the Department of Cultural Affairs, Volini has avoided the ax with a transfer to the Department of Procurement Services.
...
-- in which case you are still fucking golden.)

All of which is to say that, while I get that freezing federal salaries sucks, if you're expecting a lot of tears of betrayal to be shed over it, I suggest you take it up with some sleep-deprived, stress-sickened city worker who is in their third year of having their financial security cut out from underneath them...while doing twice the work they were hired to do...for a boss who has made it clear that more layoffs are on the way...and consider themselves one of the lucky ones.




10 comments:

Anonymous said...

Speaking of Clout club, I was wondering what you made of this:

http://online.wsj.com/article/SB10001424052748704008704575639103760556576.html

Apparently one of Rahm's challengers for office is a real estate developer currently living in his old house. Is this a Mike Matigan style "Keep your opponent on the payroll" stunt? Has some other faction decided to cause Rahm trouble? Is there any way that this story makes ANY sense?

fish said...

Speaking from the inside, fed departmental budgets have been flat for over a decade (meaning a roughly 3% cut each year because of inflation). When someone left a position, they are often not replaced to balance the books. So the fed employees are also feeling a serious workload squeeze (unless you work in Homeland security or DoD). The freeze is a slap in the face for sure, but it is just the most recent insult. A decade of disdain for the work the feds do has taken its toll. This isn't a pissing match for who suffers more, but maybe just one tear, eh?

Comrade PhysioProf said...

OK, seriously, I think Obama is purposely sabotaging himself for 2012, because he is just fucken sick of being the motherfucken POTUS. There is just no other explanation for intentionally pissing off what should be a solid Obama voting block for absolutely ZERO political or policy gain.

Mr. Natural said...

Rank and file congresspeople (I suppose this includes teabaggers) earn 174,000 bucks a year. Of course they are not going to cut into THEIR pay, job security, or pensions! (Shit, they are not even up to the 250 grand that is supposedly "middle income").

The party of NO is busily proving what assholes they really are by denying unemployment extensions and fighting tooth and nail for MORE sweet treats for the bazillionaires who slip it to them in the night.

As for President Obama, there have been some real hard victories in the first half of his first go-round, but he is certainly no risk taking leader. Hell, he is not even the guy he SAID he was. BTW, where the HELL do the Democrats keep coming up with these limp candidates? Why the hell not HOward Dean? I mean, JEZUS you guys!

Habitat Vic said...

Comrade,

Obama has lots of other ways to not run in 2012; the "spend more time with family," intellectual/philosophical reasons, whatever - all with less damage to his legacy, the Dem party, and the country.

I agree with DG and others, he just has the wrong makeup in light of increasing batshit crazy Repub extremism. I vacillate between anger and depression on this one. The country is being sold down the river by the wealthy and hardly anyone seems to give a shit. Or if they do care, most eagerly vote for their rich masters to put the screws to them even more.

Damned if I can understand it. Or maybe I don't want to acknowledge just how fucked we are and/or how bad things are going to get before they get better (if ever, in my lifetime).

Na szdarovia.

Kathy said...

Look at the politicians -like Dean- whom the repugs go after with all guns blazing, spending millions to have them thrown out of office, replacing them with obviously horrible people: Alan Grayson in Florida replaced by a fundy christian slimeball. Fiengold from Wisconsin replaced by a slimeball faux-businessman criminal. Ug.

The Repugs fear and hate those 3 men: so I'd look to one or all of them for at least advice on who should be our next Democratic, or a new "Free Party" presidential candidate.

Rehctaw said...

Maybe HE doesn't want to acknowledge how fucked we are because of how bad things WILL get if he does?

We're a few gajillion miles off course and beyond going back. So seriously, what difference does it make? Keep the hull from breaching and boldly go where no nation has gone before....

If not for the courage of the feckless crew, the Minnow would be lost.

Anonymous said...

Bless you. Really. I'm one of those government workers so vilified by the libertarians and Republicans here in Idaho. I never experienced collective hatred until I moved here. And a double dose of venom is reserved for those of us in the Tobacco Prevention and Control program. There seems to be a special sort of venom reserved for the Dept. of Health and Welfare. What none of us can understand here where I work is how can a state government effectively reduce the deficit by furloughing and laying off workers? Or to resist even the most miniscule of cost of living wages? I got 10 cents last year. Did I go out and support local, small businesses? No. And none of my coworkers have plans on spending any money except for essentials in the coming year. I feel sorry for the local businesses - they're run by good people who aren't greedy. But they'll suffer through the punishment of state government workers here.

greatestwirefan said...

Obama is one sorry-assed Dem. Instead of standing behind his federal workers, he freezes their salaries (as if that's going to make a difference) for purely pr purposes. I've worked in government for years and know that freezing wages and 'doing more with less' never works. The days still have 24 hours, and there's only so much work that can be done during a normal workday. And everyone knows that layoffs occur after salary freezes. Most government employees I know care about their jobs, are grateful for their benefits and work hard every day.

Does the public actually think they'll still get the services they've become accustomed to when layoffs are imminent? When local governments have to take over services that are no longer provided by the feds, states and counties, their taxes will go up again.

PR said...

Wake up assholes! Obama is nothing but a Republican plant. His agenda is to destroy the Democratic brand. All of his hope and change bullshit worked perfectly to get elected. But anyone who doesn't have his head up his ass could see by three months in this piece of lying shit was no good. The best thing to do is admit to yourselves and try to figure out how to form a political party that represents you best interests.