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What the City Needs is a Wage Freeze

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Pacman View Drop Down
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    Posted: Nov 29 2010 at 12:43pm

Obama Proposes Two-Year Pay Freeze for Federal Employees

Published November 29, 2010 | FoxNews.com

WASHINGTON -- Federal employees will find their salaries stagnant for the next two years as President Obama announced Monday that a pay freeze is necessary to put the country on sound fiscal footing. 

The president said the freeze would apply to all civilian federal employees, including those working at the Department of Defense, but would not affect military personnel. 

Examples of those subject to the cut are doctors and nurses who help veterans, individuals who administer Social Security checks, Border Patrol and law enforcement.

"Today, I'm proposing a two year pay freeze for all civilian federal workers," Obama said from the White House. 

Noting that hard economic times means small businesses and families must tighten their belt, Obama said, "I'm asking civil servants to do what they've always done, play their part." 

The freeze will save $2 billion during fiscal year 2011, he said.

The chairman of Obama's bipartisan deficit commission has proposed a three-year freeze in pay for most federal employees as part of its plan to reduce the nation's growing deficit. The commission's final report is due to be released later this week. 

Republicans said it's about time.

"At a time when our nation's seniors have been denied a cost-of-living-increase and private sector hiring is stagnant, it is both necessary and quite frankly, long over-due to institute a pay-freeze for the federal workforce," Rep. Darrell Issa, R-Calif., said in a statement.

He added that the $2 billion pay freeze is a start, but improper payments -- to the tune of $125 billion last year, were a bigger problem.

"The first place we should look to make progress on higher costs, increased debt and a stagnant economy is look inward at how taxpayer dollars are being spent and doing more to ensure that tens of billions of dollars are no longer erroneously paid out," Issa said.

Republicans over the year have suggested a pay freeze for federal workers, with Sens. John McCain of Arizona and Tom Coburn of Oklahoma proposing in May a compromise that included bonuses for employees and contractors among other items that were intended to help cover the cost of a $60 billion war supplemental. 

Shortly after taking office in January 2009, Obama froze salaries of top White House officials. He extended that freeze to political appointees across the government in last year's budget, and also eliminated bonuses for political appointees.

In a conference call Monday, administration officials said that individuals who are about to get a promotion would not be affected by the freeze

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Hermes View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Hermes Quote  Post ReplyReply Direct Link To This Post Posted: Nov 29 2010 at 3:45pm
Wonder if this "freeze" includes him flying around the world on AF-1 at $181,000 per hour ?
 
Funny how cuts never affect the boss.
No more democrats no more republicans,vote Constitution Party !!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote TANGO Quote  Post ReplyReply Direct Link To This Post Posted: Dec 04 2010 at 8:05am

Hey Pacman does your post have anything to do with the legislations first reading on tues council meeting?

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Pacman View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Pacman Quote  Post ReplyReply Direct Link To This Post Posted: Dec 05 2010 at 6:42am

"9. Resolution No. R2010-42, a resolution urging the Ohio General Assembly to reexamine and reconsider State laws limiting the ability of local governments to control personnel costs. (1st Reading)"

Tango while I agree the above law needs to be repealed and the sooner the better for the whole State of Ohio.  I would still say the City needs a Wage freeze across the board whether this resolution was put forth or not.
 
Many at City Hall are already not getting raises or very limited ones and some have even been laid off, all to continually support Public Safety workers.  Personally I find this just plain wrong and discriminatory.
 
These laws are bleeding many Cities, in particular Cities in Middletown's financial condition, to the brink of bankruptcy.  I applaud Mr. Laubach's attempt to bring this situation to the public and legislatures attention.
 
If the Police get another 3 years of 3% raises after their current contract expires that will be about $600-700k over a 3 year term I believe.  Fire maybe a little less.  So we are talking about an additonal $1,000,000.00+ per 3year period for an infinite number of 3 year terms.  At this rate Middletown will never dig itself out the whole it is in. This can not continue on without consequences.  Police and Fire are not going to step up and take a voluntary pay freeze, especially not without some clause saying they can recoup those funds down the road.
 
Almost everyone in Middletown has suffered salary wise in this depression except for Public Safety workers.  This can not continue on as it has.  More layoffs will result.  Public Safety can not be allowed to continually hold Cities General Funds hostage as their own personal banks or Middletown will surely be forced into Bankruptcy or State take over.
 
My statements have nothing to do with whether I think Poice and Fire do a good job, whether they deserve the raises, etc.  It is purely a financial observation from being in business for 22 yrs. and having to make the hard choices to just survive. 
 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote TANGO Quote  Post ReplyReply Direct Link To This Post Posted: Dec 05 2010 at 8:25am
I agree with you Pacman, this issue is consumes over 70 percent of the budget. I would like to see the city keep the present amount firefighters and police, but I cant see that happening with the present 1,000,000 + cost increase each year. Not sure the council  will be able to stand the pressure already mounting opposing this resolution.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Pacman Quote  Post ReplyReply Direct Link To This Post Posted: Dec 05 2010 at 8:55am
Council should remember the majority 75%+/- of the Public Safety workers don't live in Middletown hence they can not vote in Middletown.  In the big scheme of things this is not a lot and I know they talk to others to bring pressure to bear, but it is time that council stood up for a change and said enough is enough.
 
Ohio's law is archaic there are many states and thousand's of cities that operate without such laws as Ohio has and they get along just fine.  When was the last time you heard of a city that the Police went on Strike?
 
I worked in Public Safety for many years in a Right to Work State, had basically all of the benefits that the Middletown Police have, some better here, some better where I worked.  What we did not have is basically the guaranteed 3% a year that they get here.  Our raises were the same as everyone Else that worked for the city.  It the city gave Public Works 1% we got 1%, never threatened to strike because of it, never crossed our minds.
 
Personally I would walk into the next negotiations and tell them here is a list of the Officers eligible to be laid off if you demand more then the 1% or no raise what ever it is.  In other words if they want to go to Conciliation and win another 3 years of 3% that would mean over a 3 year period that about 6-7 Police personnel would be laid off.  Until such time as the city starts to get tough and do as the rest of the country has had to do, nothing will change. 
 
Why push the issue until this has to happen, then nobody wins, least of all the Citizens:
 

Camden City Council Approves Massive Police And Fire Layoffs

December 2, 2010 11:05 PM  

CAMDEN, NJ (CBS) – Camden City Council, as expected, voted Thursday to lay off almost 400 workers, half of them police officers and firefighters, to bridge a $26.5 million deficit.

That’s about a quarter of the city’s entire work force.

Five members of City Council voted unanimously to approve the layoff plan — two other members were absent. The cuts take effect in mid-January.

Exactly how many city workers will be affected is still an open question, although nearly half the city’s police and a third of the firefighters are slated to go.

Karl Walco (right) is with the union that represents non-uniformed Camden city workers.

“If we agreed to everything that the city proposed in concessions, it would only have a minor impact on the number of layoffs,” Walco told the council members.

No argument from Council. They sat impassively as workers and residents alike voiced their frustration.

When it was over, Council president Frank Moran suggested they’re not to blame.

“We didn’t put a price tag on public safety. Unfortunately, the governor of the State of New Jersey put that price tag on it,” he said at the packed Council meeting.

That price tag is $69 million, in transitional aid. Moran suggested that Camden residents should vent to Governor Chris Christie.

After the vote, council members and Camden Mayor Dana Redd avoided reporters by going into their offices.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Pacman Quote  Post ReplyReply Direct Link To This Post Posted: Dec 05 2010 at 9:41am
Tango maybe you know the answer to this.  Why does the Fire Dept. have 5 Deputy Chiefs with a total salary of about $501,000.00?  This is from the listings in the Journal that lists salaries.  This is the only source I have to check this morning.  I believe one of those may have retired which would leave 4 and a salary total of $370,000.00.  Why does a Dept of what 75-80 people need even 4 Deputy Chiefs?  The last city I lived in had 600-700 Fire Fighters and 2 Deputy Chiefs.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote TANGO Quote  Post ReplyReply Direct Link To This Post Posted: Dec 06 2010 at 9:20am

From my understanding the city manager makes a recommendations to council to fund these positions. So if that is true it looks like the good boys just cut some deals.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Captain Chaos Quote  Post ReplyReply Direct Link To This Post Posted: Dec 07 2010 at 9:23pm
Thank You -- Josh Laubach for throwing the gauntlet on the table.
Several who addressed council spoke of actions they could take to help the cities financial impass. The ball is now in their court to make it happen. City could request a plan of action by next council meeting or begin RIF to meet budget.
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