State workers' wages, benefits are out of whack

When lawmakers return to Olympia this week, they will be confronting another budget deficit of immense proportions -- a $2.6 billion shortfall.

It's a challenge that not only demands bipartisan stewardship, it also requires systemic changes. Revenue has dipped to 2006 levels while expenses keep rising as the state tries to assist, among others, the 125,600 workers who have lost their jobs since November 2008.

During a meeting with the Yakima Herald-Republic's editorial board last week, five lawmakers from Central Washington were surprisingly upbeat about the chances for making substantial changes to the way state government operates. The all-Republican contingent said they looked forward to reaching across the aisle and working with Democrats, who not only hold solid majorities in both chambers but also control the governor's mansion.

What minority Republicans propose for the upcoming session is a heavy dose of what has been on the party's agenda in the past -- promoting job growth in the private sector, making state agencies more accountable for their actions and passing regulation reform so employers and employees are treated fairly. The GOP lawmakers mentioned reshaping the state's workers' compensation system, which has the second highest cost per employer and third highest benefit package in the nation.

Unemployment insurance is another area that falls under the heading of "needs reform." Unemployment tax rates for businesses are second highest in the nation and offer benefits that are ranked fifth.

What intrigued us most, though, was a comment made by Rep. Charles Ross, R-Naches, who pointed out another topic that must be addressed -- wages and benefits for state workers.

The historic budget shortfalls that the state has suffered these past two years cry out for at least a temporary change in direction for how state workers are compensated. Continuing the upward trend in wages and benefits is unsustainable.

The disparity between public-sector and private-sector wages is stark. According to the U.S. Department of Commerce's Bureau of Economic Analysis, the average government employee in this state made $52,542 a year while a private-sector worker averaged $33,054 -- a difference of $19,488.

When asked last month about confronting the wage issue, Gov. Chris Gregoire ruled out tackling union contracts for fear of litigation. But there appears to be a way to renegotiate contracts through the state's collective bargaining laws, according to Amber Gunn, economic policy director for the Evergreen Freedom Foundation, a conservative think-tank in Olympia.

In the event of a significant revenue shortfall and after a "declared proclamation of the governor or by resolution of the Legislature, both parties shall immediately enter into collective bargaining for a mutually agreed upon modification of the agreement."

Gunn notes correctly in a recent news release that public employees are a significant budget driver in overall spending. With many state workers anticipating another pay increase of roughly 5 percent, lawmakers do indeed need to reach across the aisle -- both Republicans and Democrats -- and confront the issue of what state employees are paid in wages and benefits. Declaring a budget emergency and opening up the labor contracts is something lawmakers should consider.

As Rep. Bruce Chandler, R-Granger, told the editorial board, "We can't spend our way out of this problem."

If we continue on the path of higher salaries and too costly benefits for state employees, that's exactly the failed strategy we are going to get.

* Members of the Yakima Herald-Republic editorial board are Michael Shepard, Bob Crider, Spencer Hatton and Karen Troianello.