The cost of employing these workers is more than wages and overtime. In San Jose, about 18% of employee costs go toward retirement accounts and health insurance premiums.
Public employees make our cities work. They pick up trash, run the airports, drive buses, police our neighborhoods and put out fires. But those employees come with a big price tag — $1 billion for San Jose, the Bay Area’s largest city, in 2023.
California has nearly 500 cities, ranging from a few hundred residents to 3.8 million in Los Angeles, the largest city. Those cities employ several hundred thousand people around the state. While San Jose has about 112 residents per city employee, San Francisco has one city employee for every 21 residents.
The cost of employing these workers is more than just wages and overtime. In San Jose, about 18% of employee costs go toward retirement accounts and health insurance premiums. In San Francisco, benefits are a slightly larger portion of the total compensation costs, at 21%. But in Oakland, one-third of all compensation costs are benefits.Overall, the cost of employing city workers around the state grew from $21 billion in 2010 to $37 billion in 2023, a 76% increase.
Of the ten largest cities, the employee that cost taxpayers the most was an electric crew foreperson in the city of Santa Clara. The second- and third-highest were both in San Francisco -- the chief executive and investment officer of the city's retirement system and a sergeant in the police department.
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