Our Governor has stated he wants to create jobs in the State of Florida. However his proposed cuts to State employee benefits that would ultimately put many people out of work.
1. He wants to require state employees to put 5% (it's looking like it will end up being 3%) towards their own retirement. Effectively, reducing their annual income by 5%.
2. He wants to cap the premium coverage the State pays for employees to $5000. Currently premiums range from about $6000 for individuals to over $13,000 for family plans. If you have a family plan, and the cap is put at $5000 you will now be responsibile for $8000 of it. Effectively reducing your income by an additional $8000 a year.
I believe we should be responsible for some of our costs to the state. I don't want anyone to think I am asking for everything to be given to us or for a free ride. However, having said that there are some major issues with these plans.
Current employees are effectively taking HUGE pay cuts. So if you are a state employee making $25,000 annually, you have almost lost half of your take home pay. You now will be making $15,750. For a good chunk of the lower paid State Employees this will be impossible to bear. They will have to find work elsewhere if at all. The more you make, the less it will hurt.
For reference on how a cut to an employee making $25,000 would effect them check out the poverty guidelines:
| Persons in Family | 48 Contiguous States and D.C. | Alaska | Hawaii |
|---|---|---|---|
| 1 | $10,890 | $13,600 | $12,540 |
| 2 | 14,710 | 18,380 | 16,930 |
| 3 | 18,530 | 23,160 | 21,320 |
| 4 | 22,350 | 27,940 | 25,710 |
| 5 | 26,170 | 32,720 | 30,100 |
| 6 | 29,990 | 37,500 | 34,490 |
| 7 | 33,810 | 42,280 | 38,880 |
| 8 | 37,630 | 47,060 | 43,270 |
| For each additional person, add | 3,820 | 4,780 | 4,390 |
*Chart from http://aspe.hhs.gov/poverty/11poverty.shtml
New employees will have the power (I'm assuming) to add this loss to their hiring process when it comes to pay. So instead of asking for a salary of $25,000 they will ask for $34,000. But for those already employed, they are basically out of luck. Better to quit and get rehired I suppose.
Upon hearing this news, I was freaked out! We are in the process of selling our house to buy a bigger house (spuring on the economy) and now it looks like we will need to rethink this big time! It would make more sense to me to grandfather in those already in the state system, and for future hires let this information be upfront so they can decide if they can afford to take a job at the new pay rates. I'm even ok, with the retirement charges as long as they aren't doubled up with the insurance premium cap at the same time.
So to Rick Scott, way to put people OUT of jobs and halt economic growth for the state of Florida!
More information: http://www.politifact.com/florida/promises/scott-o-meter/promise/607/bring-state-employee-health-insurance-costs-in-lin/
http://saintpetersblog.com/2011/03/02/some-state-workers-unaware-of-looming-cuts-to-their-health-care-benefits/
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