Looming Crisis in State and Local Government Employee Compensation and Pensions

Alabama’s state and local government workforce is imposing an enormous burden on taxpayers. First, policymakers should be concerned that Alabama’s state and local governments employ 20.86 people for every 100 employed in the private sector—the 11th highest ratio in the country. If this ratio was brought down to the national average (17.67), state and local governments would save up to $2.4 billion annually.