State of Michigan Employee Pension System Consumes 36% Of The Annual Budget

Every pay period when a Michigan taxpayer looks at their pay stub and see’s state taxes taken out, they can calculate 36% of every dollar paid is going to a retired state employee’s pension check.

Recent post on how Michigan spends taxpayer money showed some grim forecasts on mandatory spending taxpayers have no say over:

Taxpayers also have had to bear the costs of skyrocketing costs for state employees. Michigan spends $118,000 for every state employee, up from $80,000 in 2000, adjusted for inflation. As I’ve noted before, “Overall, since 2000, the state has 14,700 fewer employees but is spending $286 million more for them, adjusting for inflation. That’s a 38% spending increase on 24% fewer workers — not a good deal for the state, citizens or even the unions representing them.” Michigan taxpayers are also shelling out around six figures for every school employee. And 36 cents of every dollar spent are for pensions, mostly to make up for past underfunding.

Source: Mackinac Center

Published by Hoosier Econ

Located out of Central Indiana. Blogger of economics, politics and societal trends.

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