Public employment continues to grow - Increase of 444.5 full-time equivalent employees in 2003

Prepared by Jason Mercier, Budget Research Analyst
Evergreen Freedom Foundation

3/12/04

Olympia, WA Contrary to statements from various officials that state employment has decreased over the past year, in 2003 overall employment actually increased by 444.5 full-time equivalent (FTE) positions.

To measure growth and spending over time, the state compares fiscal years (FY), which run from July 1 to June 30. The numbers show that state employment grew from 103,818.3 FTEs in 2002 to 104,262.8 in 2003. This upward trend is continuing once again in 2004.

Comparing employment trends in 2004 with the same time frame in 2003 shows that FTEs are once again increasing. If this year's trend continues, 2004 will mark the eighth straight year that state FTEs have increased. State employment has grown steadily since 1997.

State (public) employment growth

Fiscal year	Avg. total compensation*	Avg. comp. increase	FTEs	FTE increase	FTE percent increase
1997	$46,303	$349	93,608.3	1,849.9	2%
1998	$47,973	$1,670	95,028.5	1,420.2	1.5%
1999	$48,708	$735	97,906.9	2,878.4	3%
2000	$50,961	$2,253	99,929.2	2,022.3	2.1%
2001	$53,436	$2,475	102,042.5	2,113.3	2.1%
2002	$55,311	$1,875	103,818.3	1,775.8	1.7%
2003	$56,854	$1,543	104,262.8	444.5	Less than 1%

Source: Office of Financial Management. * Includes salary and benefits.

Because the number of FTEs fluctuates each month due to seasonal employment, another way to measure current trends is to compare months with their corresponding months in previous years. Comparing January 2004 to prior years, we see that while state employment decreased in one area (Natural Resources), it still increased overall.

State FTEs by Sector

January	General	Human Services	Natural Resources	Transpor-tation	Education*	Total
2002	8,928.8	33,490.5	5,618.8	10,558.7	45,672.7	104,269.5
2003	9,112.6	33,046.4	5,596.2	10,264.9	47,041.3	105,061.4
2004	9,313.8	33,459.5	5,540.6	10,445.3	47,693.8	106,453.0
Difference 2003/2004	201.2	413.1	<55.6>	180.4	652.5	1,391.6

Source: Office of Financial Management. * Excludes K-12 teachers.

These employment growth numbers are especially troubling in the context of the supplemental budget legislators are set to approve. Washington's current budget already exceeds forecasted revenue by $184 million for this budget cycle. Despite this, both the governor and legislature have suggested supplemental budgets that will increase spending even more. New spending additions only exacerbate the deficit for next biennium.

By adhering to the priorities of government budget model, if legislators determine that new FTEs and spending are necessary, these additions will be offset in the budget by reductions in areas of a lower priority. This will allow taxpayers the security of knowing that future tax increases will not be needed to pay for unnecessary government growth.

Prepared by Jason Mercier, Budget Research Analyst
(360) 956-3482 or jmecier@effwa.org