Employees cost public about twice base wages
For each hour a public employee works, the true personnel cost equals approximately twice the rate of salary, a new study concluded.
The study, commissioned by the state of Oregon and released last week by Portland State University's Center for Public Service, didn't just look at base salaries for public employees but also factored in the cost of health insurance, retirement benefits, Social Security and Medicare taxes, overtime and paid time off.
PSU researchers used data from 21 municipal governments, including Vancouver and Clark County.
Eleven job titles were analyzed: accountant, corrections officer, finance clerk, geographic information systems analyst, human resources analyst, institutional registered nurse, maintenance crew lead, mental health therapist, police officer, senior information technology specialist and utility worker.
The goal of the study, according to the report, was to "give elected officials, government managers and public employees a more complete and comprehensive picture of the aggregate costs of employing personnel in the local and state government sector in Oregon and Southwest Washington."
Personnel costs, the study noted, are government's single biggest expense.
On Sept. 11, the U.S. Bureau of Labor Statistics reported that private industry employees cost an average of $28.80 an hour in total compensation, while state and local government employees cost an average of $41.10 per hour.
In the PSU study, researchers calculated the "burden rate" of employees by the 11 job classifications. The "burden rate" includes all employee costs: annual salary, health insurance, retirement, vacation pay, holiday pay, sick leave and overtime.
The burden rates were calculated as a percentage of the annual salary.
In Vancouver, for example, a city accountant has a burden rate of 178 percent, a police officer has a burden rate of 183 percent and a finance clerk has a burden rate of 201 percent. An accountant working for Clark County has a burden rate of 180 percent, a sheriff's deputy has a burden rate of 206 percent and a finance clerk has a burden rate of 194 percent.
The study also broke down the effective hourly cost of employees. Neither Clark County nor Vancouver topped any of the 11 job classifications.
Within job classifications, there are pay step levels.
Vancouver police officers have the highest entry-level annual salary -- $55,728 -- among the 21 jurisdictions studied. Clark County's pay for entry-level sheriff's deputies was $47,712, the 11th-highest figure.
Top-step Vancouver police officers earn $74,676 a year; top-step Clark County sheriff's deputies earn $60,876.
As for health care costs, Gresham, Ore., had the highest average annual cost for general service employees, with $20,779. Clark County ranked sixth, with an average of $16,903, and Vancouver ranked 14th, with an average of $13,898 per employee.
The city of Sandy, Ore., paid the least for general service employees' health care, at an average of $8,510.
Clark County also had the sixth-highest average annual cost for health care for law enforcement employees, at $17,297. Vancouver ranked 15th, with an average of $13,898 per law enforcement employee.
Linn County, Ore., had the highest average health care costs for law enforcement ($22,428) and Sandy had the lowest, at $9,016.
When comparing retirement compensation, Clark County and Vancouver had the lowest burden rates. Both Washington and Oregon have a Public Employee Retirement System but it's standard for Oregon jurisdictions to pay a PERS "pick-up" equal to 6 percent of an employee's salary.
Clark County and Vancouver don't pay such a pick-up.