Our country's free market system is truly alive and well, which means our state government entities are falling more and more behind the 8 ball.
As our local businesses and manufacturers continue to respond to economic pressures that are driving wages up, state employers such as Dickinson State University are now seriously feeling the pinch. DSU President Dr. Lee Vickers reviewed the existing scenario during the first Saturday morning coffee with local lawmakers for the 2007 legislative session this past Saturday at Dickinson City Hall.
Vickers is concerned about a proposed increase in the out-of-pocket medical expenses state employees would have to cover that's being discussed by lawmakers. The state pays the entire medical premium for state employees, which has been a longtime ace in the hole for attracting potential employees.
That ace will surely become a duce if an increase in state employee out-of-pocket medical expenses is included in any wage proposal approved by lawmakers. That's because the out-of-pocket increase could eat about half of the wage increase that's likely to result this session for state employees on the lower end of the wage scale.
"The point here is that it will have the greatest impact on the people at the lower end of the ladder," Vickers said Saturday. "We're having a really tough time recruiting people here because all of the businesses increase their salaries, and again, if we lose that perk, we're going to be in a world of hurt."
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Vickers stated North Dakota is dead last in the United States regarding higher education wages. That case also could be made for a number of other state agencies.
The bottom line is state government is soon to find out the benefit package it offers no longer provides a large enough incentive to offset the poor wages its pays. Lawmakers need to heed the wake-up call Vickers and other state officials are politely sharing with lawmakers this session.
If lawmakers don't listen closely to the message and fail to act, state government will be knocked off its employment pillar and will be left to slug it out with mainstream employers. Given the fact mainstream employers can react much more quickly to market pressures, state government will be left flailing flat on its back.
The end result will be state positions left vacant, and taxpayers receiving unsatisfactory services. It's a scenario we must prevent from becoming a reality and we strongly encourage our lawmakers to achieve this goal.
