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POLICY HIGHLIGHTER

Volume 12, Number 2
February 19, 2002

State payroll continues to grow

Locke hires an additional 10,000 full-time equivalent positions

While Washington’s business climate suffers and the unemployment rate climbs, one source of employment remains secure: working for the state. In fact, while many state industries have suffered under massive layoffs, the total number of state employees has grown at a faster rate than state population since 1994.

In 1994, the Office of Financial Management (OFM) reported that the state employed 108,595 people. In 2000, the official count – after a rigorous, three-month accounting ordeal – was 169,712 employees.

Whether the state payroll has really grown by more than 60,000 employees since 1994, or whether the true number of state employees has been under-reported all these years is unclear. When the Evergreen Freedom Foundation (EFF) asked for an accounting of state employees, it became painfully obvious that no one really knew the answer. Procedures for counting and monitoring state employment were flawed to the point of being useless and numerous errors were discovered. It took three grueling months for EFF to work with OFM and come up with an actual head count, based on actual earnings, of state workers employed in 2000.

It is, of course, impossible to travel back in time and perform the same head count on the state’s 1994 employment rolls, so any comparisons must be made between the actual 2000 count – which includes "off budget" employees who are paid from various revenue sources – and OFM’s 1994 count as reported in its Personnel Detail Report.

These difficulties and the inability to obtain a clear and accurate count of how many employees taxpayers are compensating underscores the lack of accountability in state government.

In addition to job security and growing employment rolls, state workers have done well financially. The average full-time equivalent (FTE) salary increased by 23 percent between 1994 and 2000. As of 2000, the average FTE salary was nearly $10,000 more than the average per capita income for the state.

In 1994, OFM reported 89,574 FTEs earning an average salary of $34,651. Factoring in benefits, total average compensation for FTEs was $43,871. At the time, Washington’s average per capita income was $22,948. In 2000, OFM reported 99,929 FTEs earning an average salary of $41,018 and average total compensation of $50,961. By 2001, average total compensation had risen to $53,437. While per capita income is not yet available for 2001, average income in 2000 was $31,129.

Here is how the numbers break down:

Number of FTEs per citizen
1994 - 1 FTE for every 60 citizens (state population = 5,374,564)
2000 - 1 FTE for every 58 citizens (state population = 5,772,731)

Number of state employees (full & part-time) per citizen
1994 - 1 employee for every 49 citizens (reported)
2000 - 1 employee for every 34 citizens (actual)

Number of state employees who earn $70,000 or more annually
1994 - 2,033 (reported)
2000 - 5,760 (actual)

Average FTE salaries and total compensation
1994 - $34,651 salary, $43,871 total compensation
2000 - $41,018 salary, $50,961 total compensation
2001 - $42,779 salary, $53,437 total compensation

Average increase in FTE salary and compensation between 1994-2001
Salary increase - 23 percent
Total compensation increase - 22 percent

Cumulative state employee salaries
1994 - $3,161,167,073 (reported)
2000 - $4,420,312,443 (actual)

Cumulative FTE salaries
1994 - $3,103,860,853
2000 - $4,098,854,460
2001 - $4,365,204,910

Cumulative FTE compensation
1994 - $3,929,710,727
2000 - $5,092,483,116
2001 - $5,452,768,959

These numbers show that state government is growing out-of-control. If legislators want to rein in state spending, they need to make a serious evaluation of the state’s core functions and objectively determine the number of state employees necessary to carry out essential services. Once that is done, employee compensation should be evaluated as well. State salaries should be based on the more reliable and accurate Implicit Price Deflator instead of the Consumer Price Index. If this is done salaries can reflect increases in inflation without adding undue burden on the budget.

Washington citizens are feeling the squeeze of our current economic crisis. We’re tightening our belts and re-evaluating our spending habits. Isn’t it time for state government to do the same?

* All per capita personal income and population figures derived from Bureau of Economic Analysis.

Contact: Jason Mercier, Deputy Communications Director, (360) 956-3482 or jmercier@effwa.org


Evergreen Freedom Foundation
P.O. Box 552, Olympia, WA 98507
Phone: (360) 956-3482, Fax: (360) 352-1874
Email: effwa@effwa.org


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1 Part Honesty; 2 Parts Arrogance

At a March 23, 2005, House Appropriations hearing on a bill to gut the voter-approved I-601 spending limit, Rep. Jim McIntire (D) asked a supporter of I-601’s two-third supermajority requirement for the legislature to raise taxes the following question:

"Can you name a time when we [legislators] have actually not just set it [supermajority requirement] aside by majority vote? I mean, this is in many respects a procedural motion that has no bearing. It’s a statutory constraint that cannot constrain any legislature that chooses as a majority to set it aside . . . have we ever used a supermajority [to raise taxes]?"

- Rep. Jim McIntire (D - 46)
(360) 786-7886

Despite the arrogance of some state officials, Washington's constitution is clear: "All political power is inherent in the people..."

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