A business group says that government employee compensation in Minnesota is out of sync with the private sector and must be reined in.
A new study released Thursday from the Minnesota Chamber of Commerce concludes those wages, insurance benefits and pensions are threatening the sustainability of government services.
Tom Hesse, the chamber's vice president for government affairs, says public employee compensation should be on the table in the 2011 session when lawmakers try to erase a projected $6.2 billion budget deficit.
"Many employers over the last two or three years have implemented wage freezes, have changed the contributions to 401ks for a certain period of time," Hesse said. "So, there are a lot of things that the private sector has done that the public sector could maybe learn from in how to get through difficult budget times."
The chamber study recommends changing to a system that pays public employees based on performance rather than years of service.