This policy brief reviews the growth of Michigan’s state and local government expenditures from 2000 to 2010 and finds that government employee contributions, particularly the cost of employment benefits, were a primary contributor to the increase in spending. This brief explores the kinds of employment benefits that can be received by employees, as well as the recent changes made to benefits in the government and private sectors. It finds that bringing benefits in line with private-sector averages would save Michigan $5.8 billion and provides recommendations for implementing this policy.
The Mackinac Center for Public Policy is a nonprofit research and educational institute that advances the principles of free markets and limited government. Through our research and education programs, we challenge government overreach and advocate for a free-market approach to public policy that frees people to realize their potential and dreams.
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