Monday, July 2, 2007

Higher Labor Costs, Higher Taxes 

Filed As:  Budget and TaxMunicipal ServicesPrivatization

The Allegheny Institute for Public Policy, which analyzes policy in western Pennsylvania, reminds us of the link between an expensive public workforce and high taxes.

In its policy brief (PDF) Pittsburgh Finances: A Long Way to Go, the Institute compares Pittsburgh with four benchmark cities. The Steel City has more employees than the benchmark cities, its worker compensation costs are five times as high, and its spending 35 percent more. It could actually get worse; its ability to meet its pension obligations are at half strength compared with Charlotte, Columbus, Omaha, and Salt Lake City.

Bottom line: the city is in serious need of some cost-cutting, which most likely means some re-evaluation of current practices and priorities.

RSS feed