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This page contains a single entry from the blog posted on September 25, 2007 9:35 AM. The previous post in this blog was Like baloney?. The next post in this blog is More changes afoot. Many more can be found on the main index page or by looking through the archives.

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Tuesday, September 25, 2007

Must be nice

You're not the only one getting a kicker from the State of Oregon:

The state has about 60 department heads who will get raises of 21 percent to 24 percent over the next two years, Kulongoski announced Monday. Nearly 4,800 state managers will see their salaries rise 11 percent to 16 percent.
Plus, don't forget, a generous pension and oh, the fringe benefits!

Comments (15)

Well, at least it's "for the children".

Not mine, of course - but for those of the vast, underpaid bureaucracy of state government.

Poor babies.

I wonder how much scientific research Teddy did on the subject of whether this increase will actually increase the retention rate among these irreplaceable dept. heads and managers. Which professional consulting firm looked at this move with a view to its likely effectiveness? What evaluation was done to determine the value of the alleged purpose relative to spending these monies elsewhere? Was this a priority over schools? I'll bet Teddy just couldn't restrain himself and shot from the hip on this one.

Nice to see that not all stereotypes are false - maybe just backward - spend and tax; it's the Democrat way.

Considering the scopes of responsibility and size of budgets administered (as reported in this morning's Big Zero) then the new salaries don't seem unreasonable. Even with the benefit package.

Of course the big increases look bad in comparison with other public employee raises and of course they'll be compared with "average Oregonians". And of course there will be lots of debate about whether or not they're really needed to attract top people. But realistically, a $150K annual income just isn't that big a deal anymore - just ask a tax preparer.

The problem is the continuing growth of public-funded programs - examples of which are regularly discussed on this site. Social engineering and a Nanny State don't come cheap.


Boy, Ted sure thinks the gravy train is a-rolling. Amazing how short-sighted these guys are. We staff and give evryone raises and then, boom, we are in a financial crisis to support deserving state workers, have no money for schools/police and need to raise taxes. The hits just keep coming.

Sounds like he is bumping up some pensions for people about to retire.

And attracting top people? One would think that the benefits and PERS would be enough for that.

Is it odd that the State's tax revenues increased about 20%, and the pay raises match and the recent States budget spending increased 20%? Magic.

It my axiom that whatever tax/fee increases we have "for the children", for "public safety", that is all seems to go to pay raises.

These people (Ted, I mean) are their own worst enemy.

We will see the "wisdom" of these pay raises next year when the RECESSION hits Oregon.

The worst part about this is not the inflated salaries, but the concomitantly inflated PERS retirement benefits, that will continue for the life once these folks retire. The money would have been better spent on training replacements - preferably relatively new hires who are on the new "tier three" retirement plan, which is much more like a defined contribution plan. What a waste.

WHAT generous pension?!? Got news for you folks -- the old PERS I and II are no more, people hiring into the state now get dumped into PERS III, basically just your basic, stripped-down defined contribution plan. No defined benefit at all. When the economy tanks for good, thanks to Chimpy and peak oil, a PERS III pension will be worth very little.

basically just your basic, stripped-down defined contribution plan.

Welcome to reality.

BTW, I'm sure most of the agency heads are under the old system.

I believe the Tier III plan includes both a defined benefit component(1.5% of ending salary per year of service) and defined contribution component (guaranteed minimum annual return on contributions), with contributions to both accounts paid by the government employer.

Molly, I think you meant paid by the tax payers of the state.

Richard, you are correct. My point was to disagree with George, who stated the pension component was gone. Tier III still includes a generous defined benefit (pension) component, unlike most private sector retirement plans. Contributions to Tier III are not made by the employee through payroll deduction, but are paid by the government employer (funded by taxes, fees, etc) above and beyond salary, unlike most private employment arrangements.

I work for the Department of Human Services/Mental Health and Addiction Services, and let me tell you, I'm no fat cat state employee. After 4 yrs, I make about $26,000/yr. My PERS check (I am Tier II) will be MAYBE $1000, after taxes and health insurance. I don't sit behind a desk taking a break the minute it is your turn in line - I deal with behavioral emergencies that have put me in the ER twice this year, along with the other times I have been bit, had coffee thrown on me, been spit on, etc. Don't judge all state workers by what you see at the DMV.


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