Policy Matters

Yesterday, the FY 2013 budget hearings commenced with an overview by the Mississippi State Personnel Board (MSPB).  Currently 34% of the state’s workforce is under the purview of the MSPB with the remaining workers including K-12 teachers, IHL, the community colleges and the Governor’s Office / Legislative Branch.

During the hearing, the MSPB highlighted a number of challenges facing the state in the support and recruitment of a competitive workforce:

• As of June 30, 2011, state employment experienced the largest decrease in employee numbers in the last decade.
• The average salary of our state employees is $34,279—however, 62% of all state employees earn less than the average salary.

• With 62% of state employees earning less than $34,279, many state workers are earning wages below self sufficiency levels.
• Mississippi’s state employees covered under the MSPB earn significantly less than state employees in each of its border states (between 14.7% less than AR and 31.5% less than workers in LA).
• Despite population increases, there are fewer state workers covered by the MSPB than there were ten years ago.

The information shared by the MSPB illustrates that many of Mississippi’s state workers are not earning high wages.  In fact – many are not even earning wages that bring their families to self-sufficiency. The wage information on state workers comes in light of two additional and important facts at both ends of career life cycle for state employees:

• Over the past 5 years 72% of employee resignations came from individuals that were employed for 5 years or less.
• Over the next 5 years, nearly 33% of the workforce will be eligible to retire.

Appropriately, much attention has been paid to the Public Employee Retirement System Study Commission.  Any policy changes considered regarding the changing of the Public Employee Retirement System should be reviewed in the context of the total compensation package available to state workers.  If Mississippi continues to provide very low wages and cannot offset the low wages with a competitive benefit package, how will it attract the talent needed to provide high quality services to its citizens?