12 23Sun05262013

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Cut from the top

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WE CAN’T recall the last time we’ve seen such an obvious, ham-handed political ploy as the spate of voluntary salary reductions we’ve seen in the last 48 hours by high-ranking administration officials.

In a move clearly designed to put pressure on the Legislature as it deliberates GovGuam cost-cutting measures, eight upper management level people (so far) from the Calvo administration have offered to follow the example the governor set last year and voluntarily accept a 10 percent reduction in their pay, with a request for the savings to go toward the timely payment of tax refunds.

Yes, it sure looks like overt political arm-twisting at its finest...

And we support the policy 100 percent – although not necessarily for the reason it’s being done.

The governor and his team speak of “leading by example.” That is certainly a laudable thing to do, and we very much agree that everyone in a management position in any organization – and certainly in GovGuam – should try their best to do so.

In the case of government cost-cutting, however, it seems to carry with it the nuance that everyone on the government payroll bears equal responsibility for our fiscal mess, and that everyone should share a similar burden in cleaning it up.

We’re not so sure about that one.

Are the salaries and benefits paid to the ordinary GovGuam employees ... the police out there on patrol, the firemen putting out a fire, the road workers filling in the potholes in the summer heat, the clerical workers answering the phones and trying to keep the government’s paperwork in order, the teachers in the classroom – the people who do the actual work that keeps the island running – are they the real source of the problem?

We don’t think so.

Yes, they get a living wage, and their health care is covered. Yes, most of them are able to take care of their families and keep their children properly fed and clothed; but the last time we looked, they weren’t all driving Lexuses and living in penthouse apartments.

We also suspect that, dollar-for-dollar, the money paid to people toward the bottom of the GovGuam scale has a more stimulative effect on the local economy. The ordinary workers are not investing in exotic financial instruments or going off-island several times a year for expensive vacations.

As a rule, pretty much everything they get goes right back out – right here on Guam – for the necessities of life.

So when thinking about cutting down on GovGuam’s expenses, we’d like to see a basic principle be that those who can afford it most should take the biggest hits.

By cutting their own salaries, the governor and his management team have taken a good first step in this direction, but why not go further.

For example, we were shocked to see, on the recent financial disclosure statements made by the candidates in our upcoming election, just how much money many people – from both parties – are getting in government retirement benefits, even while receiving their legislative salary. One senator, for example, listed a “GovGuam retirement annuity” of $57,914, while another cited combined pension payments of fully $115,200.

Before cutting any benefits from people at the bottom, how about setting an absolute cap on what any one person can receive?

Or how about doing some sort of means of testing for higher GovGuam salaries and benefits? Does someone who is already wealthy really need the same government salary as someone who is relying on it as their family’s sole source of income?

These are also things which could be done on a “voluntary” basis, and would also represent serious “leading by example.”

Let’s cut from the top.

Comments  

 
-1 #2 Mitch Stevens 2012-09-26 12:25
The benefits in GG are extremely generous. Did you know that if you work 1 pay period, you get 1 day paid leave? They might call it 4 hours sick leave and 4 hours annual leave, but it totals 8 hours leave. In a year you have 26 pay periods. That's 26 days off a year. That is more than 5 weeks vacation annually! Thank you Mr. and Mrs. Taxpayer.
 
 
+5 #1 Dale 2012-09-26 05:17
Well, I for one am not holding my breath waiting for this to happen. Those reveiving retirement should receive NO salary as a senator, or if they do stop all retirement pay and recalculate it when they leave government servive!
 

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