Some time ago, I posted on why the only lasting solution to our problem is to reconcile the rate of growth of our expenses to the rate of growth of our revenue. That is still the case. Until our expenditures grow at a sustainable rate, we really have no possibility of returning to fiscal health. There are those who ...
... doubt we can do it at all, for instance Mr. Lynam (read here). Please read these posts to get the thrust of my argument.
Defining the terms,
We have a revenue problem???,
Ladies and gentlemen, we have a winner!,
and Common Sense Solutions
Update-Added link to opinion from Standard Times by Mr Lynam.
Monday, August 25, 2008
Real solutions
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33 comments:
A town-sponsored salary analysis has found that employees' salaries are comparable with the wages received by workers in similar positions both locally and in other similar communities around the state.
Town salaries largely fall in the mid-third range when they are broken down into top-third, mid-third and low-third.
"We are at the median of the salaries," said Ed Tavares, the retired principal of the DeMello Elementary School, who prepared the report. "The people who get the top salaries wear multiple hats."
His study is based on the Municipal Benchmark Salary Survey, published in January 2007 by the Massachusetts Municipal Personnel Association Inc. The survey used salaries for fiscal 2007; fringe benefits weren't included.
No smoking gun here! Where are the CFRG members going to look next?
Now let's see if we can get our tax rate into the mid third and not the bottom third and just maybe we can end all this unnecessary banter. Look at the time these people are wasting on something that is unrealistic to achieve. Time to move on. Bring on the overrides!
If fringe benefits had been included, would that have changed the survey? Then what would our salary standing be?
I've worn "multiple hats" in the private sector. None of my employers gave me any more money in my paycheck. I was just told I was needed to do something out of my job description because that was what was needed at the time.
What about translating all those "fringe benefits" into something more financially realistic, like raises based on performance and merit, when affordable to give? That's how most of us get our thanks for working hard.
I'm referring to being more realistic when determining these fringe benefits, not eliminating them.
Listen folks, it doesn't matter what all my neighbors can afford. If I open my wallet and I have no money...I can't afford it. It's simple.
Looking at other communities doesn't matter, if you don't have money and people don't vote for overrides, we can't afford it.
Give me one week with that Benchmark Survey and I will have enough material to debate the retired town employee's report ad nauseum. I guess because of what happened with the Budget and Revenue Task Force Report, the new strategy is to not let these comparison reports out to the public before the town employees have a chance to put their spin on things.
Out of curiosity I just did a calculation. With our fire tax and the $2.1M overrides that got passed, our average tax bill is now in the middle third of the communities in the state. It is at the bottom of the middle third, but in the middle third none-the-less. This also doesn't take into consideration the trash fees that we pay that most others have included in their tax bill.
Wally - It is also interesting that the BRTF was asked to compile specific data from that report last Dec., by Mike and Kathleen. That was the last we heard of it. We weren't going to charge $500 either.
The initial data that I saw, which was quite rough, showed that for the most part the salaries were reasonable, the revenue intake including tax money was reasonable, but the expenses were about 2% higher than the norm. The BRTF was looking forward to working the data to get specifics.
I also agree with "wallet". As Greg Lynam always tells me, it doesn't matter if your neighbor drives a Mercedes if all you can afford is a Chevy. He hates comparisons for that reason.
Thats right. Comparisons with other communities dont matter.Averages dont matter. What bothers me is if you cant afford to live here its not cheaper anywhere else. We've become the community of last resort. And if "our average tax bill is now in the middle third of the communities in the state. It is at the bottom of the middle third, but in the middle third none-the-less." why are we at MNSS
"Real Solutions" that funny its the last thing you'll find here
I knew it would'nt take too long before the attacks would start. The previous survey done for free by the way chose 11 communities and came up with basically the same results as this one. However the CFRG said they felt the communities chosen in that study were not representative enough, so here we are with yet another survey with many more communities in it and guess what - still not good enough.
Nope, can't compare Dartmouth with anywhere else. We're unique,everyone's incompetent, we can do without, we're broke, does the complaining ever stop? Find a cheaper place to live if everything here is so disagreeable.
Heh, indeed!
If you read my post above or the others that I referenced, you will see that I have not argued that our problems are caused by high salaries. The cause is that our expenditures are growing faster than our revenue. Where our municipal employees salaries fall in relation to other communities is irrelevant to that fact. The report cited in the paper today doesn't provide us with any insight as to a solution. You can read my thoughts on that S-T article here.
I have tried to lay out the case that overrides or salary freezes or any other action which does not address the underlying problem is a temporary measure. While comparisons to other communities may point to budget areas where we are doing well and areas where we are not doing well, that is the limit of their usefulness. Comparisons do not provide solutions, they only provide information. Take a look at this post about our water department as an example of what I am talking about.
If you've been elected(by the townspeople no less) your incompetant or corrupt. the kids in schools dont need technology because my grandfather didnt need it. We can do without____ because my tax dollars should cover it. The town employees dont need a living wage(they all make 100,000+ anyway)the survey only used 350 cities!! its not accurate enough. its always something.
Bill, if "Where our municipal employees salaries fall in relation to other communities is irrelevant to that fact" why do all your loyal minions and cfrg flunkies continue to harp on extravagant salaries as the downfall of Dartmouth
Comparisons and surveys dont give you the answer but they do eliminate possible problems. This report shows we are not overpaying our employees as is so frequently cited here and by the cfrg. surveys are tools to see where(in this case) we stand in relation to other communities. There was widespread belief not long ago that we drastically overpaid our employees, well after two different surveys the truth is we dont. The truth is we have a very well run town that simply cant pay its bills with the current level of revenue. You can only cut expenes so far. Maybe we need to look at increasing revenue instead of making fewer people do even more work with less tools.
Reading over the comments here, I don't see any that harp on extravagant salaries. I do see comments saying that our salaries are not out of line. I generally agree with that statement.
Once again, my point is that we need to reconcile the growth of our expenses and revenue.
Putting aside my incompetence and corruption, I am trying to show that paying more taxes just makes us broke at a much higher level.
Bringing our expenditures in line with our revenue will require new approaches to how we deliver services. That is the challenge we face, how to get more while not spending more. I am sure I will hear about free lunch. That old saw is just not true. Information technology and increased productivity have greatly reduced the costs of many services. We need to apply those techniques to our town.
Try telling the guy that busts his hump to make $50k per year without any benefits that everything in town employee compensation land is just okie dokie. The point is that all the real jobs around here with unions have been shipped overseas so all we are left with is municipal employee unions. The working stiffs were left to sink or swim on their own. Public employees need to realize sooner than later that they have reached the saturation point of what those working stiffs left to twist in the wind can afford to pay them.
Of course continue to hire someone at the going rate of other communities, even if you really can't afford it, or should be trying to lessen the salary load. Come to think of it, the other communities that are paying the going rate that we are being compared to are also in the same boat as we are. Ever hear of keeping up with your neighbor whose grass is greener than yours? Where's it get you, if anywhere at all, except possibly in debt.
Do you always have to spend every penny you have just because you have it? Maybe and I'm not speaking for CFRG here, that is what some people, CFRG possibly included, feel has happened in Dartmouth, except no one will admit it, especially not those in administrative or official positions.
I have to laugh at some of the comments posted here - the complaint from the guy 'busting his hump to make $50k a year without benefits'. Well the truth is, whose fault is that? Change jobs, learn something different or learn more so you can advance past this position in life. That's how a free enterprise system works. It's not by bemoaning the fact that someone has it better than you so you need to drag them down to your level, it's about doing better if you are dissatisfied with your lot in life. I did it and continue to do it every day, to the point that no municipal salary is all that attractive anymore, and I was not born into it either.
As far as the CFRG goes, they have indeed made the case over and over that salaries have been one of Dartmouth's problems, Bill's hazy relatinship to the CFRG does not really matter to me, however the DFRG's continued misrepresentations on this issue have undoubtedly stalled any progress on most other issues in town.
The truth is that this survey was done by a former principle who apparently was not asked by the SB to do it. Who authorized it? The truth is that the cost of benefits were not included in the survey. HUH??? The truth is this survey has not been vetted. So as far as I'm concerned there is no truth here.
Lots of people reach their potential at $50k per year income so I guess anon doesn't think they should be allowed to live in Dartmouth. The fact remains, town employees have reached the saturation point of what the community can afford. Before you look down your nose at the $50k per year people, and there are plenty of them, remember, overrides require their vote.
Wouldn't it have been just plain common sense to include the fringe benefits cost in the salaries as well? This could change the figures drastically. How accurate does this make the report if these fringe benefits figures aren't included?
If Mr. Tavares is getting $500 off his taxes, too bad this report wasn't offered to a Dartmouth senior who had a background in this type of research, and could really use the monetary help. If this report were really needed, what a golden opportunity someone in Town had to help an ordinary, retired, non-school, non-Town employee.
Maybe it isn't the salaries that are unreasonable. It's the fringe benefits that are out of whack (buy-backs, carry-overs) and contribute to the problem. We were told this last year; these type of benefits are not common in the private sector.
I think Mr. Tavares' survey is interesting, but there are no solutions to our current fiscal problems (now or future) in this survey. Pick up the paper any day of the week and you'll read about one of these very communities and their fiscal woes. Communities across the South Coast are trying to find solutions. Most of the overrides have failed. I think people want change before we are flat broke. Although it is an interesting survey it doesn't address a solution. That's what Dartmouth needs.
I think that we should do exactly as the other communities that are going broke do. Maybe we can get a group rate on receivorship.
When will our town administrator stop trying to cover his butt and get down to work? The ST salary analysis article is just another example. Done by a retired school principle, released without the SB's knowledge and before being vetted. Fringe benefits were not included. Don't they cost the town money too or are they free? I somehow doubt it so why were they not included? Didn't fit in with the "our salaries are in line" propaganda? Some feel the "no" people are constantly looking for excuses but the simple fact is that until our town leaders stop playing games and get down to work we will continue to point out the problems, misinformation and spin tactics. Some may also feel it's just easier to hand over more money much like some parents do with children they cannot control but that method benefits no one in the end. The result is a depleted wallet and an out of control child.
To anon 3:42 - yep lots of people do reach their potential at $55k a year. No problem there, and I dont look down my nose at someone earning that, I know lots of people in that income category and they live a great life. The difference is that not one of them feels the need to disparage other people that made different choices and make more money. When I first got started I made peanuts, but I never looked at the guy that made more money than me in an envious or jealous way. I wanted to know how they did it. I still think that way. There's always someone with more money, no way around it, but I'm glad for them and if more money is important enough I figure a way to get it. The idea that my own limitations with regards to salary should automatically limit someone else to that figure is crazy. If more money is the prime motivator figure a way to get it not complain about someone that has.
Yep, let's look at the guy making $50k. Maybe he's smart enough to design and build his own home thereby saving architect and contractor fees equaling $250k over a four year period. Now his worth is in excess of 100k per year. He enjoys being independent and doesn't buy into the rat race mentality of paying colleges to get a paper that qualifies him for a teacher's position. Maybe he's even smarter than the average teacher, degrees aside. Heck,maybe throughout the years he's worked off enough poor architect plans that he's not really impressed with architects either, degrees aside. Now he's not jealous of people that make more than him and doesn't want to drag them down but perhaps just feels that he shouldn't be overpaying them either. They do after all average over $80k per year when you include the benefit package. Considering the short work year they have, I might just agree with him. How many of these town employees would be able to match their salary and benefit package in the private sector?
You make my point anon 8:47-that smart guy earning his $50k is smart enough to know what he wants and puts a value on those things - degree or not. But being as smart as he is is confident enough that he does not need to disparage or tear down others that make different choices for their own lives. Simple really, live and let live.
A few more thoughts anon 8:47. You talk about what our various leaders in town might earn in the private sector-The executive of a private business whose yearly budget is some $60m+ a year will certainly earn more than the executive of any municipality - many times more, same with a $34m school budget. The private sector argument goes both ways so who are you to determine what constitutes 'overpaying' someone? The design/build your own home analogy makes sense to a point. That point gets crossed when someone earns enough that his lost income in designing and building his own home costs him more than it would to hire an architect/builder to do it for him. And not everyone that makes a lot of money looks at it as being in a rat race-some actually enjoy it believe it or not.
My point in all of this is that it has been clear to me for some time that the cries of overpayment and high salaries and benefits are by and large not the real issue here and only serve as a distraction to the real issues that must be faced. But it seems many are more than happy to play the 'class' game and whether this most recent survey is legitimate or not (it does seem odd with some of the new informtion coming out about it) the game goes on with no solutions in sight.
Talk about comparisons to the private sector...in the private sector, an administrator and a financial director would have routine evaluations and would be accountable to produce or they would be shown the door.
In Dartmouth, that doesn't happen. In Dartmouth they write their own contract with sweetheart clauses. You can't get much better than that!
No argument there anon 8:11. Yearly reviews must be done and milestones and performance expectations set, also consequences for not meeting performance goals. There should be no stopping the implementation of these things right now.
Ya O.K., so you don't look down your nose at the working class, but that's only after you've been reminded that you need their vote.
8:07 anon - you're dead wrong about my looking down my nose at anyone, votes or no votes.
It was'nt me who talked about 'joining the rat race mentality and paying colleges to get a piece of paper to qualify me as a teacher'. That tells me about all I need to know about where you're coming from. Not much is gonna change that.
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