Wednesday, June 3, 2009

Pay Cuts

April 29, 2009

Mr. Jim Miller
Riverside Press Enterprise
P.O. Box 792
Riverside, Ca. 92502

Dear sir:

Thank you for listening to my bluster today. Being a native Californian and resident for most of my life, my perspective, at least in my own mind, is to ask what is best for our future. I’m listening to President Obama contend that his goal isn’t big government but that the hardship of these times give him no choice.

As you know President Reagan rightly saw government to be the problem, not the recessionary economy. Only smaller government will prove economically viable going forward. As we discussed, the dwindling tax base will force more taxes upon those who remain loyal, most will move away. The result can only be a downward spiral. The times demand big change not big government.

So what shall we do? Vote no on all the propositions. Wake up California, let us reject further denial and deceitful advertising. The government is not the employer of first resort in any growing economy. Cut the size of the public sector. Cut back on the extravagant benefit and pension plans. Cancel the failure liability for the state if employee pension and retirement funds go bust. Life in California is not without risk, let’s accept the risks and reject the entitlement mentality of the public sector.

Government can pump up the private sector if we make the effort. The editorial in the Daily Press by Mr. Getty was correct with it’s touch of libertarian moxie. Each suggested action could make a positive impact on the private sector. Some are rather extreme but the times demand these kind of actions. As a small business person, an investment tax credit kept me in business on two occasions. Where are our politicians? The priority seems to be, let the government do the hiring.

What was most shocking in the article was the disparity of incomes between the two sectors. The public sector makes twice as much! In another Daily Press article it was noted that a senior teacher in Apple Valley makes over 80,000 dollars for nine months work. The tax base can not sustain the inequity. A Victor Valley School District Superintendent wants a million dollars. These salaries are insane when the struggling private sector is mandated to pay the retail price.

Our discussion turned to the question, could there be any other untried alternative. Why not require an across the board pay cut of 10% for the entire public sector? Why not include healthcare professioals, educational professionals, correctional professionals, city, county and state workers? Most importantly, all the various politicians would volunteer for the axe. What a wonderful world that would be!

This would be an opportunity to set California on the path of being great once more. Could the pipedream happen? It is not likely, but what would be the fiscal impact upon the budget with such a plan? Mr. Miller, with your resources, would such a cut balance the budget? Is it in the neighborhood of $14 billion dollars?

I must confess to being slightly curious. What is the total payroll of California’s public sector? If you find out or are even able to make a guess, please call so I can relax just a bit. Thank you again for listening.

Sincerely yours,
G.Goslaw (There has been no reply)