Mayoral riposte to DeMaio’s financial figures
City Councilmember Carl DeMaio has been releasing report after report the last couple of weeks, each targeting some element of San Diego city employees’ compensation, usually trying to make the case that city workers are vastly overpaid, especially when it comes to pensions and health benefits. The reports have generated a fair amount of shock and outrage among some members of the public, but the buzz at City Hall has been more irritation at a pesky mosquito than any kind of full-throated outrage.
But there does seem to be a little fight among the powers that be. Just now, Mayor Jerry Sanders (or a staffer) posted a Twitter update that read: “Want to compare our city’s financial situation to another city?” and then linked to a Detroit Free Press article that suggests Detroit city government might do well to look to San Diego for ideas on how to clean up its act.
The message is a shot at DeMaio’s most recent report (PDF) which said that San Diego provides double the rate of fringe benefits than the national average. Union-Tribune reporter Helen Gao checked DeMaio’s assumptions and found he’d vastly overestimated the city’s benefit rates. From the story:
The city pays a 61 percent fringe-benefit rate, “a shocking number that should leave taxpayers fuming,” [DeMaio] said, compared with a national average of 34 percent for government workers.
But the comparison is misleading because the two numbers are calculated quite differently.
The city figure takes the benefits cost and divides it by base salary – creating a percentage for benefits above salary.
The national figure divides the benefits cost by total compensation, including salary and benefits, illustrating the portion of benefits costs in the total picture.
Using that formula, the city’s benefits make up about 38 percent of compensation, compared to a national average of 34 percent for government.
Gao quotes DeMaio blaming the city for providing him with bad numbers. If Twitter is any indication, Sanders was at least somewhat amused at the incident.
Doesn’t change the over all conclusion that city workers are overpaid. Calculations off or not, that much I think most San Diegans can agree with.
Actually, it doesn’t tell us all that much at all. National average is benefits make up 34% of total compensation, for the City it’s 38%. But, of course, if benefits stay constant and pay decreases, then benefits will make up a bigger share of the total. Maybe this is what DeMaio is suggesting?
You know what 4% means? $60 million. You know what the city’s deficit is? $50 million.
Sounds like DeMaio is right to be raising this issue. And thank god someone has the guts to be raising it!