by Paul J. Gessing
Rio Grande Foundation
February 26, 2014
As the Legislature discusses the budget during the 2014 legislative session, pay hikes for State and local government workers are on the table. The Legislative Finance Committee has proposed relatively ambitious pay raises. Gov. Martinez, on the other hand, has proposed more modest pay hikes targeted at teachers. An earlier analysis from the Rio Grande Foundation demonstrated that government workers enjoy a greater than eight percent compensation premium over their private sector counterparts. Now, new research conducted for the Rio Grande Foundation demonstrates the source of that premium: In unionized sectors of New Mexico government, employee pay is higher than it is for government workers who aren’t union employees. In other words, taxpayers pay more than they have to for basic public services. Rather than providing pay raises for government workers, New Mexico’s elected leaders should look for ways to return resources to the private sector.



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