Wisconsin Fringe Benefits Above Normal

Ouch… for the taxpayers of Wisconsin.

State-local government employees in Wisconsin received an average of $12,171 in fringe benefits in 2005, exceeding benefits for private sector workers by more than 50%. Public benefits cost Wisconsin taxpayers $4.62 billion in 2005, or an average of more than $800 per person. These are the key findings of the latest Wisconsin Taxpayers Alliance (WISTAX) study, “Public and Private Benefits in Wisconsin.” Celebrating its 75th anniversary, the nonprofit WISTAX keeps Wisconsin citizens informed through nonpartisan public-policy research.

In every state, public benefits are greater than those in the private sector. However, Wisconsin’s gap (50.1%) was much larger than the nation’s (34.9%). It was also larger than the gaps for all states bordering Wisconsin: Illinois (34.5%), Iowa (45.8%), Michigan (18.4%), and Minnesota (30.1%). The largest gap was in Oregon, where public benefits were nearly triple those in the private sector. If Wisconsin’s state-local employees received the same level of fringe benefits as the state’s private workers, Wisconsin governments would have spent $1.54 billion less in 2005, WISTAX said.

In addition to costing more, public benefits have also grown faster than private ones. From 2001 to 2005, Wisconsin’s public benefits per worker climbed 41.6%, or an average of 9.1% per year. Private benefits have also grown quickly (up 34.8%, or an average of 7.8% per year), but at a slower rate than public benefits.