Biden Approves pay raise for Federal Employees

Biden Approves Largest Pay Raise for Federal Employees Since Carter Administration

As you read this, you are probably wondering when the economic pain of the Biden administration will end.

If you are like most of us, your wages are being outpaced by inflation and your bank account has yet to stop moving backward since Biden took office.

Well, get ready for that pain to hurt a little more because Biden has decided to give federal workers a big, fat pay raise, the biggest they have received in decades. AND GUESS WHAT--You, the taxpayer is paying for it.

“Executing on the President’s 5.2 percent pay increase for both military and civilian workers recognizes the Federal workforce’s dedication and service to the American people and positions the Federal Government to better compete in the labor market to attract and retain a well-qualified workforce.”

Just to put this into perspective, the average federal worker has a salary of $98,943, while the average private industry worker has a salary of about $58,000, and our taxes pay their salaries.

Read about it...

Social Security for 2023

Social Security Checks Could Rise by 9.6 Percent in 2023

The slight decrease in inflation announced Wednesday, from 9.1% in June to 8.5% in July, is likely to bring down 2023’s Social Security cost-of-living adjustment (COLA) as well, to 9.6%.

Last month, the Social Security Administration was planning to give seniors a 10.5% boost. That would have brought the average Social Security recipient’s benefit up by $175 to $1,668 a month. We will know sometime in October

That’s now likely to be slightly smaller: a $159 bump to $1,656 a month, Barron’s reports, citing estimates by the Senior Citizens League.

Read about it...

More in the Omnibus bill

Americans Can't Afford Gas, Congress Just Gave Itself a 21% Raise

The $1.5 trillion omnibus bill has plenty of inflationary spending, and the honorable members of the legislature didn't leave themselves out.

This legislation would provide $774.4 million for the Members Representational Allowance, known as the MRA, which funds the House office budgets for lawmakers, including staffer salaries. This $134.4 million, or 21 percent, boost over the previous fiscal year marks the largest increase in the MRA appropriation since it was authorized in 1996, according to a bill summary by the House Appropriations Committee. For paid interns in member and leadership offices, the House would get $18.2 million.

Read more...

Lake Worth Commission - Working less for more?

Ever since this commission gave themselves a big raise at the end of 2016 and beginning of 2017 in the 2nd reading, they are meeting less...that's a fact. AND, ever since the voters gave them three year terms that they wanted so badly, they are meeting less. Why is that? They didn't need voters for their big raises, only their politically incorrect votes from the dais like three year terms. They have the voters right where they want them.  Put it on a referendum and it usually always passes as they know that the people generally trust their elected officials.

What they gave themselves nearly two years ago--
Ordinance No. 2017-03 - First Reading. Raise the compensation for elected officials as follows:

• Increase the Commissioners’ annual salary to $24,500 (formerly $14,500). This is a 68.9% increase
• Increase the Mayor’s salary to $29,500 (formerly $15,500). This is a 90.32% increase;
•  - Includes a car allowance of $500 per month which brings the mayor's salary up to $35,500 and the commissioners' salary to $30,500. 
•  - Includes participation in the City’s 401a retirement plan (the city manager and department directors currently participate through ICMA); and/or
• City staff recommended continuation of the current health insurance benefits and furnishing the communication devices (or in lieu of the devices, a $100 per month total stipend if the elected official chooses to furnish his or her own devices).

If you notice January 2019 meetings, there is only one scheduled on January 15.  This is following suit to several months last year where they only had one general meeting.

No pay raises in 2019 for Federal Employees

4 Key Points Nobody’s Addressing About Trump’s Federal Pay Decision

"President Donald Trump announced he’s not granting the usual 2.1 percent pay hike for federal employees, prompting staunch opposition from many Democratic lawmakers.

In recent years, the Congressional Budget Office and conservative think tanks, the Heritage Foundation and the American Enterprise Institute, all produced reports finding federal compensation packages far outpace the private sector."  Nearly one in three federal employees — 32.3 percent in 2015 — are either union members or have jobs covered by an employee association contract.

We are all under the impression that employees in the City of Lake Worth get good employment packages. It has now been suggested by the Lake Worth Finance Advisory Board that the minimum wage be increased to $15.00 for Lake Worth workers. Also, there are some employees at the City who feel that those in the IBEW get preferential treatment by the City in wages, benefits, etc. in comparison to those represented by the PEU and PMSA.

Government employee salaries are good for the most part but federal compensation packages are more than generous. As of 2014, the federal government employed 2,711,000 people (excluding non-civilian military).

Read the article... that justifies and explains what the President has decided.

News Media and Nancy Pelosi--We know who is "pathetic"

City Commission Meeting tonight and Mike Bornstein's raise

Some of the items on the Agenda:

• Spending $197,518 on a street sweeper even though that function is farmed out to U.S. Sweeping.

• Agreement with Palm Beach County for demolition services up to $25,000 per demolition that must benefit the low to moderate income residents in the area.

• A Credit...can you believe it--under budget? of $53,317.38 for coming under budget for pump design

• $36,134 for additional road design on 16,17,18 Avenue North and Terrace Drive.

• $115,225 for chemicals for our water!

And then we have the City Manager's Raise

You know how retail operations price everything under one penny to make it sound cheaper...$1.99, $5.99 as an example. Well, that's the same gimmick being implemented with the Bornstein raise.

City Manager Bornstein is up for a big raise--16.55%--but this is not surprising considering he just promoted Juan Ruiz to assistant city manager for a salary of $135,000 plus big "bennies."

Second Amendment to Employment Agreement for City Manager Michael Bornstein
SUMMARY:
This amendment will adjust the annual compensation provided to the City Manager, increasing his base annual salary from $145,000 to $169,000.

BACKGROUND AND JUSTIFICATION:
Under the April 7, 2015 Amendment to the City Manager’s Employment Agreement, the City Commission agreed to review Michael Bornstein’s base salary on an annual basis on or about April 1st of each successive year of employment; however, no increase in compensation has been addressed in the past two years.

In 2015, the City Commission established the annual salary for City Manager Bornstein at $145,000. A recent survey of City Manager Compensation in the surrounding Palm Beach County area shows this salary to be one of the lowest in the Palm Beach County area. The previous City Manager to City Manager Bornstein held an annual salary of $150,000 during her tenure at the City from 2009-2011. (To be specific, she left after 32 months when she was fired by the new commission--The Trio--because she did not "have my vision," said Triolo).

IN ADDITION:
City contributes 10% of salary into 401(k) or now $16,900 a year.
$1,000 for life insurance premiums
Medical and Dental insurance
Paid 12 sick days and 15 vacation days per yea--probably more by now who knows?
Travel and expenses reimbursed to outside meetings
Professional dues and subscriptionspaid
Cell phone and cell service
$500 monthly automobile allowance.
Healthcare

No Raises until City is Great Again

Letters to the Editor
Palm Beach Post
January 16, 2017

No raises until city is great again


Our politics here in Lake Worth should be all about re-connection and realizing how beautiful it once was. This vision put forward by our mayor and certain commissioners, of growth as prosperity for our area, has been disastrous, creating nothing but gridlock and the never-ending pursuit of debt, such as the bond issue, to solve problems.

Lake Worth should be willing to introduce bold programs such as expanding solar and wind power, and move away from expensive fossil fuels. It would set an example to the rest of the county that this city can net responsibly and have a cheap source of power into the future.

Goals other than profit-making would ensure a quick transition for all.

We must keep the money we generate in our local community and stop giving it to outside sources. We must demand from our representatives that they start to localize our economy again and let the residents have a greater say in moving forward.

Then, and only then, should our mayor and commissioners be looking for a pay raise.

JAMES THOMSON
LAKE WORTH

Commission Salaries and Non-disclosure

Demographically speaking, Greenacres is nearly the same as Lake Worth. Their average citizen's income is a little higher than Lake Worth's. The major difference is that they don't have their own Utility as we do that substantially helps subsidize our operations to the tune of $9 mil a year.  The Lake Worth Utility was one of the justifications that City manager Bornstein gave as to why our commission deserves to double their salary. I doubt if one of them can answer how much one kilowatt of power costs.

Back in 2012:
Greenacres: Mayor: $12,600; council members: $11,100. No allowance for car or cellphone.
Lake Worth: Mayor: $15,400; commissioners: $14,400. City cellphone or $1,200 allowance.

Tuesday night our commission voted in a raise for themselves which now will be:
Mayor:  $29,500 plus $6,000 car allowance for a total of $35,500.
Commission:  $24,500 plus $6,000 car allowance for a total of $30,500.

Back in 2012, Scott Maxwell believed that he should work for no salary and had said this on more than one occasion. And he might have something there as meetings are much shorter now and tons of items are thrown onto the Consent Agenda. Take Tuesday night as an example--$1,650,000 was on the consent Agenda with zero discussion.

Commissioner McVoy asked to pull two of the items off the consent Agenda for discussion but the Trio, consisting of Maxwell, Triolo and Amoroso would not second a motion to do so. Commissioner McVoy represents this city and it is bully behavior by this commission not to recognize a legitimate request.  Those two items alone came to $163 thousand but it wasn't the cost that bothered him but the Mayor receiving a $300 campaign contribution from one of the sub-contractors, Sharon Merchant. We would not have known about it unless McVoy mentioned it.

Sec. 2-101. - Additional and supplemental disclosures requirements. Any elected official of the City of Lake Worth, who is a current sitting member of the city commission and has accepted an election campaign contribution in an amount that is more than one hundred dollars ($100.00) from an individual or business entity having an interest in a matter before the city commission in which the city commission will take action, must publicly disclose, both verbally and in writing, such contribution prior to any discussion or vote on the matter. The written disclosure must be submitted to the city clerk.

Quote of the Day - Commissioner Christopher McVoy

“$210,000 going to five people.. That seems like a big chunk. We’re not in this for the money or personal benefit.”

~ Commissioner Christopher McVoy
speaking to the pay raise voted in by the majority commission last night.

And McVoy is right. No one asked these people to run for office. Public Service is never about money. They know going in that the pay is minimal. Now, they have told everyone that they are in it for the money. Voting yourself a raise of this magnitude is arrogant. Not only do they get a pay raise, they get health insurance, a $6,000 year car allowance whether they drive their car or not and other benefits that I can't seem to get from City Hall.

Besides City Manager Bornstein being their number one cheerleader for justification, the coolest thing of all is their office accounts--rolled over campaign funds that are used for dry cleaning, meals at plush places, gasoline, you name it and you will find it on their office reports.

On Lake Worth Elected Officials Raises

Including the car allowance,
The mayor will be making $35,500 and each commissioner $30,500 a year for part-time work. We've come a long way, baby.

Under normal circumstances, an employee asks his boss for a raise.  But public servants who make the decision to serve for the greater good (it's not supposed to be about the money), go to their employee to intercede on their behalf. It would just look too crass to vote yourself in a whopping raise but if your city manager is telling all of us how wonderful you all are, then it can be justified.

City Manager Michael Bornstein talked for ten minutes on why the mayor and commissioners deserved a raise---it's for all the things they do. He said, "The job is like being on a board of directors of a major corporation." After having worked for two public corporations, I know what boards of directors do--they go along with anything their executives want as long as it's for the greater good of the company. In our case, we are spending more than we are bringing in during this new budget. Managing the city in a deficit is never a good decision. And these raises aren't even in the budget.

Commissioner McVoy argued that the duties really hadn't changed that much. Andy Amoroso said that the job position does change and it depends on the person holding the position.  Actually, some commissioners have the opportunity if they own their own business and can make arrangements to travel here or there for the League of Cities LGBTLO or whatever and get off from work to attend ribbon cuttings,  etc.

Salary creep is a phenomenon and it's happening more and  more in city governments for elected officials who feel they deserve a better salary or a full time salary for part-time work. They know going in that their salaries are low and do not compensate for the time and effort and energy that is devoted as the job is public service for part-time work. It's a self-justifying dip into the cookie jar but this time their employee, city manager Michael Bornstein did the dirty work for them. He is up for a review in January for his own salary increase.

When you can vote on increases for yourself of 68.9% for commissioners and a 90.32% for the mayor, you have to wonder who this Trio is working for as they just raised taxes on everyone in this city and even spent money sending out mailers on the bond issue. (It took them years to finally give the employees a 4% raise).   On top of their salary increase, they get an additional $6,000 a year for a car allowance. Perhaps relief should go to the taxpayers before any rewards are showered on the mayor and commission, not to mention all the benefits. So, including the $6,000 a year car allowance, the mayor will be making $35,500 and each commissioner $30,500, what it takes their average constituent to make in one year doing full time work..

The quote of the night was from Commissioner Andy Amoroso: "I bust my butt for the people of this city and I'm happy to do it." Obviously he isn't that happy as he voted in the raise for himself.  The vote was 3/2 with McVoy and Maier dissenting.

City Manager Michael Bornstein up for Review

Tonight will probably be another Trio "love fest" for City Manager Bornstein. The City Manager is up for a review tonight...it is the last item under New Business. That means we will probably see his buddy Lantana mayor Dave Stewart in the chamber cheering him on.

The review must have slipped the mind of the commission so they got a little nudge.  If the CM wants a raise, they had better put the Review on the Agenda to get it into the new budget. His original employment contract commenced on April 16, 2012 for three years.

In April of 2015, City Manager, Michael Bornstein was given a new contract for an additional five years that included a $10,000 raise and an extra week vacation for a total of 4 weeks. He now makes $145,000 a year. He gets $500 a month for his car allowance. The biggest surprise of all was when Scott Maxwell suggested an unheard of five year contract and then urged the entire commission to vote five years in solidarity. The vote was 3/2 with McVoy and Maier dissenting.

TA agreed with City of Lake Worth on Pension

Comment Up

As I was unable to attend today's meeting between the Union employee negotiating committee for the PMSA and PEU union contracts and City staff, I just received the following results:

1.  Tentative Agreement reached
2.  Pension is a separate agreement from raise
3.  4% raise is retroactive from October 1, 2015.

I am rather confident that our city attorney, Glen Torcivia, had a lot to do with moving this issue forward to an acceptable agreement with the employees. This team of employees was very impressive as was employee Nicholas Petrino who stood up, was steadfast, and convinced the city.

Union and City - Pension Tug of War

A Battle that Never Ends...

Today is D-Day...Decision Day--hopefully--a compromise and a decision will be decided upon on this long-drawn out union negotiation with the city's desire to move all of the Lake Worth employees to a 30 year retirement plan. Many of our employees were hired under the old plan. Employees have held their own saying you hired us under certain conditions that we accepted and if we voluntarily switch, we will lose a lot of retirement dollars.

So many costs are rising and the city's infrastructure is crumbling at their feet. They are looking for savings in anyway they can get it thus a new employee contract is strongly being pushed. The City is saying that they no longer can afford the old plan and have been holding up the 4% raise to all employees since October 1 (the money is in the budget) until a final contract is signed. Although employees don't begrudge management getting their raises, it is something they grumble about as they themselves haven't received one in many years.

It will be interesting to see how this plays out as the employees will be the ones giving up something--possibly it will be either the 4% raise after not having one in nearly 8 years or the old retirement plan. If the employees elect to stay with the old plan, the question then is, will the city employees ever expect a raise again? Will all of this be the final nail in their coffin? Will it all turn out fairly?

I can't see where a compromise will make anyone happy, least of all the employees. In the meantime, they are doing their jobs with a shortage of staff and working their butts off. But in a tug of war, it is the guy with the most strength who prevails. The city is the guy who signs the check.

The meeting will be held at the City Hall conference room, today at 9am.

The Problem
(Click to enlarge)

Employee Raises - Lake Worth

Comment Up

We get it.  Lake Worth employees are angry.  They haven't received a raise in eight years.  Even the raise that this commission voted in for them will cost this city almost $1 million, nearly twice what we received in added ad-valorem taxes for this year's operating budget.

At 1:43 one morning, someone came on this blog and tried to post totally false assumptions on the employee retirement matter.  One question he/she asked was why didn't our former city manager give them raises in 2010. The writer was placing the blame on all the wrong people and was irate. It's easy to blame the "other guy."

If you check, we are not the only city that has not given raises in 8 years.  It is all across the country.  The State of Florida employees have not had a raise in eight years either. We had a major recession/depression not too many years ago and it has been a slow climb. The City of Lake Worth can't afford these unfunded liabilities and that's a fact.

The General Employees Retirement System (GERS) was established in 1996 and is a Defined Benefit Plan. From what I can ascertain, another Plan came into effect in 2010 and all new hires were to be under the new plan going forward. But my understanding, and it is confusing as I am not directly involved and know nothing about union contracts, is that the city now wants to eliminate the original plan of 1996 altogether which affects many employees and promises made by the City.

As a conservative, I believe that it is imperative that any business or municipality work within its budget, not spending more money than it receives in revenues and not paying our bills from savings.  Simple premise. But, how do we not stand by a promise. Let's figure it all out, Lake Worth, but be fair.

The above graph's figures have changed slightly to 33.60% Controllable or $10.4 million and 66.40% Non-Controllable or $20.6 million. It's a "living document" we have been told.

The next time the city and union reps meet is April 19 from 9 a.m. to 1 p.m. at City Hall.

Palm Beach Post article of today. 

Union workers hold their ground with Lake Worth city staff

Comment Up

The meeting was to start at 1pm.  The clock kept ticking. The city is "always late" I was told.

I attended the Union and the City of Lake Worth discussion on the PMSA and PEU union contracts on Friday, March 18th.  I only stayed for one hour as the writing on the wall for me was that the city was not about to give an inch and the union members were just as steadfast. There were several breaks for caucusing while I was there. Nothing changed but the union members stood their ground, were very respectful and matter of fact and at least they did not talk down to city staff.

In the minds of the union members, the city is asking them to give up too much and are not living up to their original agreement with them.  They are offended by the city's "take it or leave it" approach.

Peter 2nd from right
He was amazing as were they all

The carrot is the 4% raise being held in front of them that they have yet to receive unless, of course, they buckle down and accept the city's terms. Once a contract is agreed, I have been told that the raise is not retroactive even though it has been budgeted and the money is there. Peter said that the Union was educating its members and the city attorney said "no," it was just the opposite--accusing them of advocating. But isn't it the Union's job to suggest what they feel is the best way forward to its members? Isn't that why union members pay dues?

Sam Neimeiser, 2nd from left
"To ask people to sign away their 1st Amendment rights--
that is unconscionable ."

Sam Neimeiser, union organizer, a young guy with Master's Degree in Applied American Politics from Florida State University, was down from Tallahassee. He is from a long family line of union members and activists. He makes a middle class worker's salary, so he can relate. He is standing up for what he believes--the city union workers in their dispute with the city and getting the benefits that they were promised. Sam told Glen Torcivia, city attorney, that there are possible legal problems for breaking promises made by the city to the employees who  never had a say. 

Glen Torcivia asked them if it was something the city could afford?  Sam mentioned the city putting $15 million into a park and told Torcivia that the city threw them under the bus with their statements in the Palm Beach Post.  "Absolutely," said the city attorney.

Left to right: Glen Torcivia who gets a 3% raise every year, Germaine English, Human Resource Director who just got a big raise last year to $90,000 and Maire Elianor, new Finance Director at $130,000 a year sitting there listening to workers making $13.85 plus an hour who haven't had a raise in eight years and their union contract is an on-going stall.

I have not been told if they came to any agreement but if not, it could go to Binding Arbitration, Mediation or Impasse. Although I did not witness any negotiation while I was there, I would think that both sides would want to continue along those lines, if possible. It may not be.

Impasse:

• An impasse is determined when the employer and union reach a point during negotiations when both parties are reasonable in assuming that further bargaining is futile.
• Once the employer reaches an impasse, an employer is permitted to implement changes to the terms and conditions of employment that are consistent with the previous proposals to the unions. However, employers cannot offer greater benefits or ones that differ than those presented during negotiations.
• An employer can institute a lockout at this time in order to place economic pressure upon the union. However, employers should beware that unions may also call a strike at this point as well. 

Unsure if this description applies to municipalities.

Lake Worth employees complain--We still don't have our raise!

Comment Up

"The issue is this: The city said the money is in the budget for the raises, but it wants workers, who have been working without a contract since October, to opt into the city’s 30-year retirement program, a move that would force some workers to forfeit more lucrative benefits they can earn in the 20-year plan they say they’re in now."

Click here to read the Palm Beach Post article.

Jeri Muoio's Raise not welcomed by everyone

Comment Up

You think we have sniping/biting and "unfair" comments here in Lake Worth on some of these blogs or at city hall? Get a load of West Palm Beach Mayor Muoio's Facebook page...here is a snippet from a WPB resident and the mayor's husband. Ah, such loyalty:


Charles Muoio
Charles Muoio Steve I welcome the chance to discuss your comments about this issue at your earliest opportunity.
Purse carrying husband
Like · Reply · February 16 at 7:42pm

Stephen M. Sunday
Stephen M. Sunday Charles Muoio, I got your message and I can read between the lines, there will be no meeting with you. YOU have no standing in the City of West Palm Beach. By the way Macy's is having a One Day Sale on purses and make sure the pumps match too.
Like · Reply · 16 hrs · Edited

Charles Muoio
Charles Muoio I will see you sooner or later and expect a public apology. If not, I will seek recourse through litigation (people are always threatening this for free speech) or other means. This is not a threat but a promise. I assume you aren't a coward and will state your comments to my face.
Like · Reply · 15 hrs

Read Jose Lambiet to get the rest of the story.

West Palm Beach's mayor is a strong mayor and similar to Lake Worth's city manager position. She runs an operating budget of a little over $156 million.  She has been making $125k a year and it will be voted upon to raise it to $150k a year plus various perks.

City Manager Michael Bornstein came here from Lantana making $98K, hired in at $135k and now makes $145k in Lake Worth with the trio giving him an unheard of contract of five more years. He is responsible for an operating budget of a little over $31mil not including our Utility that is managed by others.

By this scenario, I think Ms. Muoio deserves a higher salary.

West Palm Beach mayor and commissioners vote in big raises for themselves

Comment Up

The Palm Beach Post article began with "City Commissioners have approved raises for themselves and Mayor Jeri Muoio, their first increases since 2004."

West Palm Beach has a similar problem to Lake Worth's.  In West Palm beach, commissioners are getting the big raises while projects have gone idle because of lack of funds. In Lake Worth, staff is still waiting for its 4% raise after not having one in eight years as department heads have all been raised in spite of them telling us they have no money to even fix a pothole.

WPB Commissioner Shanon Materio and Paula Ryan voted the right way on this one.

Lake Worth playing hardball with Union

Comment Up

The PMSA, sent out a letter to its City of Lake Worth union workers saying that it recommends a "NO" vote on the city's proposal after several years of negotiation on their contract...saying that the city is unwilling to negotiate fairly.

After not having a raise in eight years, the employees were given a 4% raise to begin on October 1, 2015 and to this day, employees have not received their raise. This commission, as politically astute as they are, would not have turned down a long over-due raise for its employees as it is an election year.

Read the letter from the PMSA and their reasons for denying Lake Worth's proposal.