City workers will receive merit pay

By MARCIA NELESEN ( Contact )   Tuesday, Nov. 29, 2011
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— City workers who contributed to their pensions beginning in August will get most of that money back after Monday's council vote.

The $192,500 the city saved will be returned to employees via a one-time merit payment that will not be added to their base salaries.

One council member, Sam Liebert, said he voted to give workers raises because they chose not to unionize and they got "screwed by (Gov.) Scott Walker, to put it mildly."

He referred to state legislation that requires public workers to contribute half of their retirement pensions. The legislation does not cover firefighters and police officers, and it does not affect workers covered by union contracts.

City Manager Eric Levitt suggested the one-time payments to lessen discrepancies between union and non–

union employees, the latter of whom lost about 15 days of pay.

The 2012 city budget includes no merit pay or cost of living increases for non-union employees while union workers negotiated raises beginning at 1.75 percent.

Levitt had also suggested another $33,257 be taken from reserves to pay police and fire supervisors because they are not receiving raises next year.

Councilman Yuri Rashkin made a motion that the city use only the $192,500 from 2011 for merit pay.

The vote was 4-2 in favor of the payments, with council members Kathy Voskuil, Russ Steeber, Rashkin and Liebert voting in favor. Tom McDonald and Deb Dongarra-Adams voted against.

Steeber said workers affected are not only supervisors and engineers but clerical workers, as well.

In 2009, non-union employees received merit pay, and in 2010 they received a cost of living increase. In 2011, they received neither and also began paying 5.8 percent of their salaries into their retirement accounts, Steeber said.

Dongarra-Adams said she would love to give city workers more money, but nobody at her small business has had a raise in five years. She said her employees now are working only four days a week and have taken salary cuts and contributed more to their benefits.

Dongarra-Adams understands there should be no salary discrepensies, but that could be corrected when the union contracts run out in 2012, she said.

Liebert said many of the city workers affected are just "regular middle-class people—single parents trying to get by … I wish we could do more."

Levitt will not get merit pay.

reader COMMENTS
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(22)
ALLin
Dec 4, 2011 at 7:58 a.m.
Suggest removal

sparky - the money isn't really theirs to give away - it's the taxpayer's money.

sparky2728
Dec 3, 2011 at 9:26 p.m.
Suggest removal

Instead of giving city workers merit pay,maybe they should use the money for the food banks and the shelters. They need the money more then the city workers. The city workers already earn a descent wage.

ALLin
Dec 3, 2011 at 4:06 p.m.
Suggest removal

RWT - your calculations pan-out. But your conclusion is incorrect. The 25% tax bracket is based on taxable income, not on earnings. Someone making $34,500 (from your example) would not be in a 25% bracket after exemptions, deductions, etc.

belman
Dec 3, 2011 at 2:46 p.m.
Suggest removal

feduptaxpayer and the rest of you people that only complain really is strange to me. Maybe you should better yourself and and find a job that has benefits. When you take away from others we only drag the whole group down to the bottom. Which is the way the teaparty and Repubicans what this county to be. A race to the bottom. If you worry about what others have look at Congress and ask them why they have better benefits. First take that away.

poobah
Dec 1, 2011 at 6:03 p.m.
Suggest removal

RWT FIRST said, "A single taxpayer with taxable income of $34,500 & a married couple with $69,000 will hit the 25% tax bracket for federal tax alone."
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THEN RWT said, "Eat chips poobah. If a married couple filing jointly exceed a taxable income of $69,000 the rate goes to 25%. It's in your link and this one too. Are you missing something?"
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Notice how RWT has cleverly slipped the word EXCEED in their second comment? But it still doesn't help your case it all. The savings aren't the absolute tax rate, but the difference between their tax rate now and the tax rate when they retire and start taking distributions. Remember that ONLY the dollars from 69,001 to 139,350 are taxed at 25%. The dollars from 0 to 17,000 are taxed at 10% and from 17,001 to 69,000 at 15%. Nice try, no cigar this time. And we're still waiting for you to provide the source you used to determine the incomes of city workers and their spouses.

RWT
Dec 1, 2011 at 3:13 p.m.
Suggest removal

Eat chips poobah. If a married couple filing jointly exceed a taxable income of $69,000 the rate goes to 25%. It's in your link and this one too. Are you missing something?
http://www.savingtoinvest.com/2010/04/20...

leominpin
Dec 1, 2011 at 11:10 a.m.
Suggest removal

This is a completely asinine decision! Unbelievably stupid. Unfortunately, people who would actually come up with this idea of paying them the pension contributions and similiar ideas are absolutely hopeless to any kind of rational thinking. They MUST be voted out. Even then, they wouldn't get it but it's the only way of stopping this kind of misuse of taxpayer money.

poobah
Nov 30, 2011 at 4:38 p.m.
Suggest removal

RWT, said, "A single taxpayer with taxable income of $34,500 & a married couple with $69,000 will hit the 25% tax bracket for federal tax alone."
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WRONG! The incomes you listed are in the 15% tax bracket, NOT the 25% bracket. The IRS can help you understand the graduated tax brackets, RWT. If you want a simple summary of the tax brackets, go to http://www.mydollarplan.com/tax-brackets... and scroll down to the 2011 table.
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Also, please cite your source of income of city workers and their spouses that you used to determine the tax bracket they are in.

janesvillean
Nov 30, 2011 at 3:57 p.m.
Suggest removal

dc510190, the city has no classes, teachers, or sports. The school district does. You are, I hope, aware that these are separate entities with separate budgets.

RWT
Nov 30, 2011 at 1:48 p.m.
Suggest removal

What is the REAL cost of the pension contribution that public employees are asked to pay? Folks, because pension contributions are for retirement, this money is not taxed by the Feds or by the State. At a 30% tax rate (see following paragraph), that's about a 1.8% savings of the total 5.8% contribution. If the workers elect to stop paying union dues it will save them another 2%. In a nutshell their 5.8% gross contribution has a 2% net effect on their take home pay. So the city council now wants to 'reimburse' them 5.8% when they're really out only 2%, giving them a net 3.8% bonus over their gross pension contribution.
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Numbers don’t lie folks.
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A single taxpayer with taxable income of $34,500 & a married couple with $69,000 will hit the 25% tax bracket for federal tax alone. Add the state tax rate of about 5% to the federal tax rate of 25% (or more) and it puts total tax savings on the 5.8% pension contribution over 30% for most, if not all, public workers. 30% of the 5.8% total pension contribution is about 1.8%.

dc510190
Nov 30, 2011 at 10:47 a.m.
Suggest removal

The city is broke, cutting teachers, classes, and sports, but we are ok with giving merit raises. what a joke most companies in this day and age are not getting raises and having to pay for Ins. and put into healthcare. This town will not learn instead of giving more to the employees we should be cutting the expenses. Most industries are seeing the same types of economic downturns and the only area that seems to put blinders on and keep giving is the government sector.

ifiruledtheworld
Nov 30, 2011 at 9:24 a.m.
Suggest removal

Mr. Liebert, you have with this type of language confirmed my initial thoughts about you. You're way too young with NO significant REAL work experience to be in the position you are in--of making decisions on behalf of the city folks. It is truly embarrassing to have you as a council member.

vatoloco
Nov 30, 2011 at 9:07 a.m.
Suggest removal

Start outsourcing public services like road construction, landscaping, grounds keeping, snow removal, and trash collection.

gamblerone
Nov 30, 2011 at 9 a.m.
Suggest removal

Hey, I know. Let's take it out of the surplus we are going to have on the wheel tax. We all know what a horrible job the city of Janesville does on patching up our streets. There's sure to be some extra money left over. I"m sure you realize, this will have to go to non union employees though, as we all know they make enough already.

Feduptaxpayer
Nov 30, 2011 at 8:57 a.m.
Suggest removal

I work in the private sector. I pay 100% of my retirement. My out of pocket expense for health went up 35% in March. All you public employees are paid by us the taxpayers. It is time your cadillac contracts meet the real world. What a bunch of cry baby losers. Wah - Wah - Wah. L

orange
Nov 30, 2011 at 8:26 a.m.
Suggest removal

Don't forget the teachers have to contribute towards their pensions too. Does that mean they will get their money back as well ? What's good for the goose should be good for the gander !

gamblerone
Nov 30, 2011 at 7:54 a.m.
Suggest removal

I have worked the last 3 years without a raise or a bonus. I pay part of my pension and insurance also. Gas,groceries,utilities,taxes and every thing else has gone up, while my paycheck keeps getting smaller. But then again I work in the private sector. Don't feel sorry for me as I will make it, always have. This is such a big joke. Man up you big babies and pay your fair share like the rest of us has to. I can' wait until election time.

lumberjack754
Nov 30, 2011 at 6:11 a.m.
Suggest removal

When will the city wake up and realize we are all struggling and we need a break. Most of us have had to take cutbacks in our pay. Myself about 25% what makes you people so freakin special?

earnednotgiven
Nov 29, 2011 at 10:52 p.m.
Suggest removal

If you are upset with the way Mr. Liebert is speaking and if you are tired of the City Council being Unprofessional, I urge everyone to send them an email and let them know how we collectively feel. This has gone on long enough!!!

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