Mushrooming Public Sector Salaries Are Behind Our Province’s High Taxation Levels.

   

Have a look at the following files. They provide the details in the growth
of municipal public sector salaries and benefits. What has happened to
fiscal restraint? Why are so many public sector employees now making
more than $100,000 per year?

Adobe Acrobat required

Municipal Salaries - 1998
Municipal Salaries - 1999
Municipal Salaries - 2000
Municipal Salaries - 2001
Municipal Salaries - 2002
Municipal Salaries - 2003
Municipal Salaries - 2004
Municipal Salaries - 2005
Municipal Salaries - 2006
(click links to view in browser, or right click and save target to desktop)

Municipal salaries and benefits may just be the tip of the iceberg. The
Ontario Ministry of Finance lists the salaries and benefits for Ministries,
the Legislative Assembly, the Judiciary, Crown Agencies, Hydro One,
Municipalities, Schools Boards, Universities, Hospitals and Boards of
Health and other public sector employers. You can view the information
posted from 1997 - 2007 at the link below.

http://www.fin.gov.on.ca/english/publications/salarydisclosure/


Without exception the growth in highly paid public sector employees is
nothing short of mind-boggling. The cost to taxpayers is a factor in the
year to year tax increases sought by local governments and the province.

  If you’re alarmed by this growth then
you’re not alone.
   

Unless our Municipalities, Crown Corporations, Hospitals, Emergency Services, provincially-funded agencies and School Boards take a much tougher stance with the staffing budget, the growth in the $100,000 group will continue. That can mean only one thing for Ontarians - tax increases year after year.

The cost to Ontarians of letting this growth continue unchecked will be in the billions of dollars. Let’s take a typical example of this problem. For the City of London (Ontario) in 1996 there were 7 staff earning a total of $811,000 per year between them. By 2006, that number had mushroomed (by a factor of 10) to 71 people earning $8.95-million per year. Two estimates put the total salary and benefit tab by the end of 2010 at between $13,500,000 and $15,300,000.

Here’s another typical example: The Thames Valley District School Board, with a budget of about $650-million annually, dedicates 85% of that money to salaries, wages, and benefits. Six years ago, there were 13 staff members in the exclusive $100,000 Club. As of 2006 that figure had exploded to 54! A former Director of Education commented that 54 wasn’t such a big number. “If you think that’s a lot, you wait to see how many fall across that $100,000 disclosure line in the next few years.” He likened it to the tip of an iceberg. The school board is always in a state of near deficit, and yet refuses to find long-term solutions to its own budget woes. Instead it pleads for more handouts form Queen’s Park. They must realize that there is no way to tackle a 5% annual shortfall without adjusting the 85% pay envelope. This situation is not unique to this school board. It is common across the province.

The City of Toronto is always begging for money from the provincial treasury. In towns and cities and counties, ambulance staff, firefighters, and police are all highly paid, with numerous members over the $100,000 mark. The Municipality of Strathroy-Caradoc (population $22,000) had four $100K Club members in 2006 - 3 were policemen. The City of London’s chief Librarian was earning $136,000 in 2006.

  Are these realistic salaries?
   

When school board Director’s of Education earn more than the Premier of Ontario, something is wrong.

Tough questions need to be asked and hard choices need to be made. It’s time to tell politicians to downsize either staffing levels in this group, overall salary & benefit levels, or better still, both.

Consider the recommendations for London to curtail this top-level staffing spiral. If adopted they will reduce the size and cost of this group over the next 3 years.

Recommendations for lowering staffing costs:
1. Freeze all salaries over $100K at the previous year’s level.
2. Limit salary increases for the $100K group to the Consumer Price Index.
3. Review benefit packages over $1,500 and eliminate the perks.
4. Reduce total spending on the $100K group by 30% over the next 3 years through attrition, early retirements, and the consolidation of positions and responsibilities.

This information is brought to you courtesy of the new Reform Party of Ontario.

If you’re alarmed by this public sector salary growth, then you’re not alone. It’s time you helped correct this situation. It’s time you acted to protect yourself from ongoing tax hikes and eventual job losses in the future. Think about the future of our children.

BECOME A MEMBER, BECOME AN ACTIVE VOLUNTEER, BECOME A CANDIDATE IN YOUR RIDING IN THE NEXT PROVINCIAL ELECTION. MAKE A TAX-RECEIPTABLE DONATION TODAY.

 


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