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And we wonder why there is a deficit in the San Francisco City budget...

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  • And we wonder why there is a deficit in the San Francisco City budget...

    http://www.sfgate.com/cgi-bin/articl...LUBN.DTL&tsp=1

    More than 1 in 3 of San Francisco's nearly 27,000 city workers earned $100,000 or more last year - a number that has been growing steadily for the past decade.

    The number of city workers paid at least $100,000 in base salary totaled 6,449 last year. When such extras as overtime are included, the number jumped to 9,487 workers, nearly eight times the number from a decade ago. And that calculation doesn't include the cost of often-generous city benefits such as health care and pensions.

    << See database of city's top earners >>

    The pay data obtained by The Chronicle show that many of the high earners bolstered their base pay with overtime and "other pay," a category that includes payouts for unused vacation days and extra money for working late-night shifts.

    Leading 2009's $100,000 Club was the Police Department's Charles Keohane, a deputy chief who retired midyear.

    His total payout was $516,118, city records show, the bulk of which came from cashing out stored-up vacation, sick days and comp time. Several other police employees who changed rank or retired also saw their annual earnings swell.

    When asked how he felt about landing in the No. 1 spot, Keohane joked, "Not so good, if it's going to get my name in the paper."

    The 36-year SFPD veteran, whose last assignment was head of administration, said much of that pay was taken out in taxes. "I helped reduce the deficit," he said.

    The average city worker salary in San Francisco is $93,000 before benefits, according to Deputy City Controller Monique Zmuda. The data take into account everyone from park gardeners and street cleaners to attorneys and technology specialists.

    Almost 100 city employees made $200,000 or more in 2009; six bumped past $300,000 when overtime and other cash-outs were included.
    Muni chief's base pay

    Only one city employee had a base salary topping $300,000. Nathaniel Ford, executive director of the Municipal Transportation Agency, made $332,489.

    Mayor Gavin Newsom had a base salary of $250,903 in 2009, which put him 29th on the list of best-paid city employees.

    The ballooning number of highly paid workers is driven by several factors, including inflation, a persistent reliance on overtime and generous contracts in a city known for its politically potent unions.

    The city also negotiated a deal to give raises to some workers who agreed to pick up a portion of their pension contributions, City Controller Ben Rosenfield said. That arrangement pushed almost 2,000 city employees above the $100,000 mark in recent years, he said.

    In years past, the $100,000 Club included large numbers of Muni operators, transit supervisors, firefighters, police officers and sheriff's deputies who padded their paychecks with hundreds of hours of overtime, paid out at a rate of time-and-a-half.

    But a 2008 rule capped most employees' overtime to 30 percent of base pay, in effect spreading out overtime opportunities to more employees, Zmuda said. That and other efforts to curtail overtime appear to be working, with payments projected to drop to $139.8 million this fiscal year, down from $142.1 million last year and $167.7 million the year before, according to the controller's office.

    In the fiscal year that ended in June 2009, city salaries accounted for $2.5 billion of the $6.6 billion budget. That does not include the cost of benefits.

    Faced with a $483 million deficit heading into the new fiscal year that starts July 1, Newsom is looking to reduce labor costs to help plug the gap.

    The mayor last week struck a tentative deal with union negotiators that includes 12 furlough days, equivalent to a 4.6 percent pay cut, for about 90 percent of city workers. The mayor also has asked city department heads and their top managers to take a 10 percent pay cut. The mayor and his chief of staff plan to give up 15 percent of their salary.

    Good work

    For some government jobs, San Francisco pays similar salaries as other Bay Area jurisdictions, according to compensation surveys compiled by the city's Department of Human Resources.

    For example, a stationary engineer in San Francisco earns a maximum annual base salary of $72,488, 1.6 percent above the Bay Area average. A San Francisco police officer has a maximum base salary of $102,648, 2.8 percent above the average.

    Payroll clerks, however, have a base salary of $54,314, 16.4 percent higher than the average, and firefighters make $100,646 in base salary, 6.6 percent above the average, the surveys showed.

    San Francisco Chamber of Commerce President and CEO Steve Falk said that annual salaries of $100,000 or more aren't as eye-popping as they were a decade ago.

    "I don't think the $100,000 pay threshold continues to be the best measure of city government efficiency. It is certainly a good tool for monitoring anomalies and excessive overtime pay, but the real concern is the pay comparison with the private sector," he said.

    Above private sector

    He pointed to state Employment Development Department data that show city workers on average earn 20 percent more than those in the private sector in San Francisco.

    In addition, Falk said, city workers "have significantly better health and pension benefits" that continue to be the biggest cost driver threatening city services. That needs to be reformed, he said.

    Many of the highest-earning city employees - including engineers, doctors and attorneys - are paid comparably to their counterparts in the private sector or can help make up for earning less pay with better benefits.

    "City government is becomingly increasingly technical and more sophisticated, and you have to pay for the talent," said Bob Muscat, head of Professional and Technical Engineers Local 21.

    In 2007, when Newsom was running for a second term as mayor, he negotiated a 23 percent pay increase for police and firefighters spread over four years. Muni drivers, whose pay is guaranteed under the voter-approved city charter to be the second highest among American transit operators, are set to get an 8 percent raise July 1.

  • #2
    Re: And we wonder why there is a deficit in the San Francisco City budget...

    Originally posted by c1ue View Post
    The 36-year SFPD veteran, whose last assignment was head of administration, said much of that pay was taken out in taxes. "I helped reduce the deficit," he said.
    Foolish thinking, taxing is a reflexive event across the whole economy.

    Comment


    • #3
      Re: And we wonder why there is a deficit in the San Francisco City budget...

      It is not that the city workers make too much. It is that the private sector employees make too little. One group's salary has kept up with inflation (well not real inflation), while the other has been falling further and further behind.

      There is a deficit because CA (US) allows the export of good jobs and the import of cheap labor.

      I would bet if you took the average salary of a city worker, examine how many people that salary can truly support, and compare it to 30 years ago, you would find that these over-paid city workers are not doing terribly well.

      Comment


      • #4
        Re: And we wonder why there is a deficit in the San Francisco City budget...

        Originally posted by chr5648
        Foolish thinking, taxing is a reflexive event across the whole economy.
        What's really sad is his statement is totally wrong.

        The $500K income he received may have yielded $100K or $200K in taxes, but the NET outflow is negative.

        Only in an accounting sense is any deficit reduced. And even then strictly speaking the reduction is to future obligations, not to the city deficit though there is some benefit to the federal deficit.

        Again, it isn't to pick on Mr. Keohane. Just correcting a mis-statement.

        Originally posted by aaron
        It is not that the city workers make too much. It is that the private sector employees make too little. One group's salary has kept up with inflation (well not real inflation), while the other has been falling further and further behind.
        In an absolute sense this statement is true.

        But in a specific sense this statement is not true: city workers receive a pension. Private sector - the pension is extinct.

        To have a comparable or higher salary AND a pension AND post retirement health care benefits - there is simply no comparison.

        Even those private sector jobs which cannot be outsourced don't get these types of perks.

        Comment


        • #5
          Re: And we wonder why there is a deficit in the San Francisco City budget...

          Originally posted by chr5648
          Foolish thinking, taxing is a reflexive event across the whole economy.
          What's really sad is his statement is totally wrong.

          The $500K income he received may have yielded $100K or $200K in taxes, but the NET outflow is negative.

          Only in an accounting sense is any deficit reduced. And even then strictly speaking the reduction is to future obligations, not to the city deficit though there is some benefit to the federal deficit.

          Again, it isn't to pick on Mr. Keohane. Just correcting a mis-statement.

          Originally posted by aaron
          It is not that the city workers make too much. It is that the private sector employees make too little. One group's salary has kept up with inflation (well not real inflation), while the other has been falling further and further behind.
          In an absolute sense this statement is true.

          But in a specific sense this statement is not true: city workers receive a pension. Private sector - the pension is extinct.

          To have a comparable or higher salary AND a pension AND post retirement health care benefits - there is simply no comparison.

          Even those private sector jobs which cannot be outsourced don't get these types of perks...unless you are a CEO.

          Comment


          • #6
            Re: And we wonder why there is a deficit in the San Francisco City budget...

            Originally posted by aaron View Post
            It is not that the city workers make too much. It is that the private sector employees make too little. One group's salary has kept up with inflation (well not real inflation), while the other has been falling further and further behind.
            City workers on the whole make less than private sector workers. $100,000/year sounds like a lot of money, but it is about middle of the road here, and it is not enough to buy a typical house within driving distance of the city ( even with a two income home ).

            Comment


            • #7
              Re: And we wonder why there is a deficit in the San Francisco City budget...

              And the SF Chronicle maintains its position as a national leader in perception management across the public domain. This time, it's serving as the tip of the spear to help frame the dialectic between the thesis [local government benefit] versus the anti-thesis [local government budgetary abuse during financial "crisis"]. The synthesis of this dialectic will of course be downsized local government to be replaced/complemented by Federal services at the local level. Well, that's my read of the situation.

              By the way, how many white DHS (Dept of Homeland Security) vehicles do you see cruising the streets of your city - now providing "local" policing and police support? When I pulled-up next to one of their white vans at a traffic light I asked the van's passenger why I'm seeing so many DHS vehicles in my city now, and the guy answered in a strong Russian accent. Talk about being freaked-out.
              The greatest obstacle to discovery is not ignorance - it is the illusion of knowledge ~D Boorstin

              Comment


              • #8
                Re: And we wonder why there is a deficit in the San Francisco City budget...

                Originally posted by c1ue View Post
                What's really sad is his statement is totally wrong.

                The $500K income he received may have yielded $100K or $200K in taxes, but the NET outflow is negative.

                Only in an accounting sense is any deficit reduced. And even then strictly speaking the reduction is to future obligations, not to the city deficit though there is some benefit to the federal deficit.

                Again, it isn't to pick on Mr. Keohane. Just correcting a mis-statement.
                I have always laughed at workers of the 'state' who say they pay taxes. Their wages come from the productive economy and the taxing of non 'state' workers.

                http://en.wikipedia.org/wiki/Reflexi...y_in_Economics

                Comment

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