It's ironic that a state with the second highest tax burden in the nation also has state employee salaries increasing at a rate more than two times the cost of living, with top state administrators receiving salaries far in excess of their counterparts in other New England states.
Before granting raises to top administrators in December 1999, neither the Governor nor the Department of Administration bothered to do a comparison study with other states. Had they done so, they would have learned that RI administrators were already compensated considerably more than their counterparts in other New England states as shown in the table below.
| January 1, 2000 | |||||||
|---|---|---|---|---|---|---|---|
| RI Jan 1999 | RI | VT | NH | ME | MA | CT | |
| State Controller | 94,008 | 104,048 | 74,568 | 65,508 | 73,466 | ||
| Labor Relations Administrator | 90,092 | 102,761 | 54,600 | 62,171 | 69,638 | ||
| Personnel Administrator | 90,842 | 101,324 | 67,392 | 74,372 | 71,032 | ||
| population (millions) U.S. Census Bureau 1996 | 1.0 | 0.6 | 1.2 | 1.2 | 6.1 | 3.3 | |
Note: OCG is waiting for data from MA and CT.
When Governor Almond was campaigning for reelection in 1998, he rejected raises for many of these same individuals. In his rejection message, he said that such large pay raises were unacceptable. (At that time he had salary comparison data provided by Operation Clean Government (OCG).) Now, eighteen months later, he has for some reason found the raises quite acceptable and his spokesperson even denies that his apparently clear rejection in July 1998 was, in fact, a rejection. In this go-around Governor Almond either was not shown or he ignored compelling data which OCG handed-delivered to his office several days before the raises were finalized. Identified were percentage increases up to 28 percent in 1999 alone and up to 70 percent for the past five years.
It's hard to believe, but Rhode Island actually has more job classifications than the federal government! Of the approximately 1800 job classifications for all state employees, over 600 of these are single person classifications. A change of one word in a job title brings about a new pay grade. This process bloats the salaries at the top of the scale, with everyone trying to do catch up with other employees they consider to be doing jobs of equal importance.
There have been studies since 1990 that recommend overhauling the salary structure for state employees. A special report dated July 1997 "Personal Reform in Rhode Island" by Rhode Island's own Department of Administration states "…the single most serious flaw in the state personnel system is the state's antiquated classification system, kept viable only through a patchwork quilt of revisions and modifications. …Our study shows that it is outdated, lacks an objective basis for evaluating the skills, knowledge and abilities of workers, and should be replaced with a better system."
Additionally, the report states "Specifically then, we recommend that the state implement a classification/compensation system based on point factor methodology…" (in contrast to the present whole job methodology). One step in the implementation strategy contained in the report would be to " Identify state classes for which RI Point Factor Evaluation System would create a downgrade, and red line them for appropriate action when vacant." OCG's First Vice Chair, Beverly Clay states "The longer this piecemeal process continues, the more classes that will need a downgrade, waiting for the person in that position to retire, thus costing RI taxpayers not only their high salaries, but also the lifetime pensions that accompany these salaries."
The report goes on to say "It is the Administration's intent to submit a comprehensive Personnel Reform Package to the 1998 General Assembly…" We are now in the 2000 legislative session. Where is this legislation form the Governor?
Ron Santa, OCG Board member states, "in 1994, there were 63 Employees receiving salaries in excess of $100,000. Today after a minimum of 3.5% increases last July, that number is at least 169. Additionally, during this five-year period, 431 state employees received salary increases ranging from $20,000 to $60,000. Granted that some of these employees received promotions and changes in job titles, however, many have had no change in job title."
During these last five years the increase in the average salary for all Rhode Island State employees is more than twice--26.5%--the accumulated cost of living increase--12.7%. OCG Board member Bruce Lang states "Under any standard for government employee pay, this degree of difference is totally inappropriate, unfair and unacceptable. These kind of increases take away from the state's ability to fund other important state programs such as secondary and higher education, infrastructure needs and payments to cities in lieu of taxes."
OCG Chairman Robert Arruda states "it is not only a burden to taxpayers to grant increases in state employee salaries far in excess of cost of living increases, there is a double problem of equity. While many Rhode Islanders in the private sector are receiving no raises or minimal raises and while Social Security recipients will receive a 2.4% cost of living increase in January 2000, last July all State employees received a salary increase of 3.5% and additionally some received step increases. The discrepancy might be justified if state employees had some catching up to do. On the contrary, in a study done by the American Legislative Exchange Council, published in January 1993, Rhode Island ranked number one over all other states with public employee salary and pay benefits 36.7% higher than that of private industry. The recent increases authorized by the Governor further widen the gap between private sector pay and that of state employees. The inequity just keeps growing." Arruda adds,"The spiraling salaries of many in state government make a mockery of the term 'public servant'." In fact, the taxpayers have become the servants of a great number of public workers. Is this Rhode Island's version of corporate welfare?"
Operation Clean Government holds accountable those whom the citizenry entrust with the stewardship of their state government. Transparency in government and the citizen's access to their government are essential to a healthy democracy. OCG advocates strong democratic laws and institutions that instill public confidence that common policies are fairly debated and decided on the merits, and that common resources are used responsibly.
The next monthly meeting of the OCG Board of Directors is
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