Benefits for state workers to cost taxpayers $7.9 billion by 2012, a 42 percent jump over this year

$8 billion benefits bombshell

By BRENDAN SCOTT Post Correspondent

Last Updated: 8:44 AM, February 1, 2010

Posted: 4:38 AM, February 1, 2010

ALBANY -- The price of providing state workers with generous pensions and gold-plated health plans could reach a mind-boggling $7.9 billion by 2012 -- a 42 percent increase over the current tab, state budget documents show.

The Paterson administration expects the cost of providing benefits to the average state employee will equal 62 percent of their salary within three years, according to Budget Division estimates.

That's up from 44 percent now and about double typical rates in the private sector.

Today, the average state worker costs taxpayers about $91,724, including $63,750 for wages, plus $27,974 for pensions, health care and other goodies.

The average cost of pay and benefits could balloon to $114,000 a year if trends continue through 2012, according to a Post analysis of the data. Perks alone would cost $43,000.

"It's just unsustainable," said Lise Bang-Jensen, who runs the Manhattan Institute's NY Public Payroll Watch blog. "Public-employee unions obviously want to keep the status quo, and that's understandable. But whether taxpayers can continue to pay these benefits is a good question."

Health-care and retirement costs have outpaced inflation for years. The Budget Division blames the current spike on pension contributions, which soared after retirement funds shed tens of billions of dollars in the recession.

Benefit costs are projected to jump $880 million in 2010 alone, a 16 percent increase over the current $5.5 billion bill.

A spokesman for the Civil Service Employees Association, which represents the largest pool of state workers, said the union would be willing to discuss cost savings in upcoming contract talks.

"It's obviously in [Gov. Paterson's] interest to present this in a worst-case scenario," CSEA spokesman Stephen Madarasz said.

brendan.scott@nypost.com

Benefits for state workers to cost taxpayers $7.9 billion by 2012, a 42 percent jump over this year - NYPOST.com.