Reader Survey Results: Despite smaller budgets, local governments try to avoid cutting employee benefits
American City & County surveyed readers last month to determine whether employee benefits have been affected by the changing economic conditions in the country. Although more than half (54 percent) of the survey’s 368 respondents reported that their departments’ budgets have decreased in the past 12 months, and slightly more (58 percent) expect further decreases in the next 12 months, the majority of survey respondents (79 percent) reported that their departments have not cut employee benefits recently and do not expect benefit cuts in the near future.
Of those who have seen employee benefit cuts (21 percent), just more than half report those cuts appear as increased employee cost for benefits, and nearly one-quarter reduced the coverage provided to employees. Respondents who have seen benefit cuts expect more cuts in the future.
Data from the Government Employee Benefits Survey
- How has your department’s budget changed in the past 12 months?
- How do you expect your department’s budget to change in the next 12 months?
- Has your department cut benefits for employees in the past 12 months?
- What benefits have been cut?
- Have the cuts in benefits:
How has your department’s budget changed in the past 12 months?
How do you expect your department’s budget to change in the next 12 months?
Has your department cut benefits for employees in the past 12 months?
| No: | 79% |
| Yes, for full-time employees: | 15% |
| Yes, for non-union employees: | 8% |
| Yes, for employees in bargaining units: | 6% |
| Yes, for part-time employees: | 2% |
| Note: multiple answers were permitted | |
What benefits have been cut?
| Health insurance: | 49% |
| Dental insurance: | 13% |
| Education reimbursement/tuition assistance: | 11% |
| Car: | 9% |
| Vision insurance: | 8% |
| Matching on 457 or 403(b) plan: | 8% |
| Pension: | 8% |
| Professional/association memberships: | 7% |
| Sick pay: | 5% |
| Health savings accounts: | 5% |
| Vacation pay: | 4% |
| Cell phone: | 4% |
| Health care reimbursement: | 3% |
| Holiday pay: | 3% |
| Student loan repayment: | 3% |
| 457 or 403(b) plan: | 1% |
| Other: | 12% |
| No answer: | 32% |
| Note: multiple answers were permitted | |
Have the cuts in benefits:
| Increased employees’ cost of benefits: | 53% |
| Reduced the coverage provided to employees: | 24% |
| Cut out certain benefits entirely: | 9% |
| Other: | 7% |
| No answer: | 34% |
| Note: multiple answers were permitted | |
