Published: Wednesday, Feb. 10, 2010

Updated: Wednesday, Feb. 10, 2010

Pare back perks for Florida’s state employees ORLANDO SENTINEL EDITORIAL | Retirement, health benefits are too generous

Gov. Charlie Crist submitted a starry-eyed budget plan to state lawmakers last month. Rather than face up to a deficit that could reach $3 billion, he called for spending $2.7 billion more by banking on several uncertain revenue sources.

As a result, Crist put the burden on state lawmakers to make the hard choices that would go into a credible spending plan.

Senate President Jeff Atwater, who takes a more realistic view of the budget, has said those choices could include layoffs of state employees.

That’s an option — surprise! — not proposed by the governor. Plenty of other public and private employers have shed jobs in the recession, and maybe, just maybe, there are some state agencies that can function with fewer workers.

But legislators also should take a look at another area Crist found too hot to touch — state employee benefits. Most state workers still get cheap health care and pay nothing toward their pensions. Raising their contributions closer to the level paid by workers outside state government could generate real savings.

The monthly premiums paid by most state employees in Florida for health insurance, $50 for individuals and $180 for families, are about half what the average state resident paid in 2008, according to a Kaiser Family Foundation survey.

But at least 26,000 of the state’s top bureaucrats, political officers and appointees pay no monthly premiums — nada, zip — for individual or family coverage. This fortunate group includes at least 2,400 employees making more than $100,000 a year, including Crist.

Legislators, most making less than $30,000, also qualify, though they are considered part-time employees. And their staffs also don’t have to pay premiums.

Florida is one of just seven states to provide family coverage sans premiums for some employees, according to the National Conference of State Legislatures.

Crist said he considered scaling back this perk but decided it was not the time to impose new costs on employees.

We would argue that with the state budget in crisis, and more cuts looming for education and safety-net programs, now is precisely the time to consider it.

Even requiring employees who now get free insurance to pay the same bargain rates as other state government employees would save $46 million a year, according to the independent researchers at Florida TaxWatch.

State employees in Florida also aren’t required to contribute to their pensions. They still have access to a defined benefit plan, an option many private employers have abandoned in favor of cheaper 401(k) plans.

As the economy has gotten worse, some employers have reduced or eliminated their matching contributions.

In Florida, state agencies make a pension contribution equivalent to about 10 percent of their employees’ salaries, according to TaxWatch.

If employees split the cost of their pensions, paying the 5 percent that’s typical in other public retirement systems, Florida taxpayers could save over $300 million a year, TaxWatch says. Other cash-strapped states have told employees to contribute more to their pensions.

But in Florida, the reflex in recent years from legislators has been to hike fees, raid trust funds, deplete reserves and whittle away at worthy programs.

We don’t wish hardship on state employees. But taking their generous perks off the table when looking for budget savings isn’t fair to other Floridians.