Management Material

As many of you may have heard, there was a significant data breach at the Comptroller's office that was discovered March 31, 2011.  3.5 million Texans were affected, a majority being former or current public employees.  The public is rightfully outraged over such a massive security breach, but, even more outlandish then the size of the breach was the behavior by Mrs. Combs. 

From the onset, it appeared that Mrs. Combs did not want her name associated with the breach, even though it was taking place in the agency she is responsible for.  The letters sent to Texans affected by the breach were signed by the now former Technology Officer Victor Gonzalez.  The letter was insincere and almost seemed to shift blame onto the public. It offered a "reduced priced" credit monitoring service, who just happened to be a campaign contributor to Mrs. Combs.  Nothing reeks of corruption more than using a campaign donor as your vendor.

 It is no secret that the Republican political machine considers her a top contender for Lt. Governor, and she spends more time raising her public profile than actually attending to the corroding agency in which she presides.  Employees throughout the agency were not surprised by the lax in security protocol, but they were surprised by the lack of leadership she displayed to her employees.  Employees found out about the breach after the story broke in the press, confirmation was sent from internal communications, not from Mrs. Combs herself. 

 It took a threat of a lawsuit for the Comptroller to do the right thing and offer free credit monitoring, but, the damage had already been done.  No doubt the media will once again harp on the fact that the company chosen to offer the free service is a donor to the Comptroller.  Additionally, the Comptroller is using campaign funds to pay for the free credit monitoring services.  The use of campaign funds is legal according to § 253.035 in The TEXAS ETHICS COMMISSION TITLE 15, ELECTION CODE, REGULATING POLITICAL FUNDS AND CAMPAIGNs.  So, while it may appear unethical it is actually within the boundaries of the law.   

Appearing unethical can be just as bad as being unethical.  At this point, Mrs. Combs has lost the respect of the public and her employees.  The extra steps taken to appease the public will not stem a lawsuit, nor will it help her fight off an opponent in an reelection campaign, or election into another office. She will need to partake in extensive damage control to repair her reputation.  Ultimately, only time will tell if the public will forgive and forget at the polls next election. 

About that Metrorail.

Recently, I've begun to use CapMetro as an alternative route to my commute from Cedar Park to downtown.  Originally I had intended to use the metro rail as I had been accustomed to rail systems in other cities that ran quickly with a nice variant in time schedules.  If you missed a train, another would be along in a few minutes to get you to your destination without much if a delay.  That was not what I found with the schedules for the metro rail in Austin.  The length of time it took to ride the train was longer then taking an express bus from the same station to the Capital Complex.  The wait time between trains was extremely long so if you missed a train you might as well call and let your boss know you're going to be at least 30-40 minutes late.  It's also very limited to the locations it can go. A large portion of Austin does not receive rail service.

I, however, was pleased to read Surid Kaphle's blog "A Great Citizen" who offered positive news about the rail service.  It's usage during SXSW increased attendance and revenue to the areas along the rail line and allowed many locals the opportunity to avoid the downtown traffic that week.

A point that I feel would have been pertinent to the "boom" of Metrorail usage that was not mentioned was the state of the economy.  Gas prices are still rising, commutes are still long, many people are out of work or looking for work , budgets are stretched to the max so many including myself just can't afford the extra gas.  In addition, students like myself at ACC can get a free bus pass for the semester allowing me to ride the bus OR the rail for free which has made riding Capmetro much more appealing.  Honestly, if it wasn't for the economy, I'm not sure the Metrorail would have the riders that it does.   

And Then You Really Might Know What its Like...

Due to the Great Recession, states across the nation are facing tremendous budget shortages. Executives & legislators of their states, including Texas, have used the crisis to take aim at public employees & their unions, using them as scapegoats for state budget woes.  While public employees are a large expense; they are not the sole reason for the budget crisis, especially for the crisis affecting Texas. 

In Texas, employees are allowed to unionize, but there are several restrictions placed on unions.  Unions are not allowed to prevent a person who is not a union member from working in a certain position or employer.  For example, a non-union welder can still work for a union run shop without having to join the union.  A union cannot charge excessive fees, dues or fines.  A union cannot mass picket or picket a business in which it does not have a direct labor dispute with. 

State employees have the option to join the Texas State Employee Union or the Texas Public Employees Association (not a union but performs very similar activities).  An employee is not required to join either organization, but both the union and the association fight for each and EVERY employee, union member or not. 

Talking points & sound bites tend to demonize state employees as lazy, selfish, worthless, unintelligent oafs soaking up wonderful benefits on the taxpayers dime while not doing any real work or providing any benefit to the state.  This is simply untrue.   

What many do not realize is that, on average, state employees are underpaid compared to the private sector.  The pay disparity certainly increases with education level.  It seems the more highly educated the individual is, the more that individual could make in the private sector.

The benefits are no longer the gold standard of the workforce.  The state does pay for the employees' medical insurance and half of the dependents coverage for now, the medical insurance has a high deductible, it does not cover x-rays, blood work, certain immunizations, & specialist office procedures.  The prescription insurance isn't insurance but a generic discount card. While employees in the private sector are paying  $10.00-25.00 co-pays, state employees are paying "discounted" rates of the same medication.  For example, my migraine medication costs $189.49 out of pocket; with my state employee plan, my discount would be $87.00; my partner's copayment with private sector insurance for the same medication is $10.00.  Sure I get a discount, & it's better than paying full price but it's not the "Cadillac" plan I've been accused of holding. 

My retirement pension may not be around by the time I reach retirement age.  I'm required to participate in the pension plan and a 401k with a mandatory 1% contribution which I know is next to nothing.  However, I'm stuck between a rock and a hard place.  I HAVE to contribute 6% of my upper 20k salary to the pension, but to make the 401k a prudent fail-safe, I also would need to contribute another 6% to the 401k.  I am well aware that the intelligent thing is to save for your future and pay yourself first; this is the standard advice that every money smart article will advise. However, this is easier said than done.  12% of your salary is a large amount of money for such a small salary.  Not to mention the fact that the administrators of the 401k literally gouge the participants with excessive quarterly and monthly fees.  Someone is getting rich off state retirement & it's not public employees!

The only benefit that can compete with the private sector is the holiday time off, but that can be ignored if there is a staff shortage or if legislature is in session.  We also receive longevity pay which is a very small retention bonus that an employee is eligible for after two straight years of service.  After two years you qualify for an extra $20.00 a month, after 10 years it's $80.00 a month.  The dollar amounts do not become significantly larger until you have been with the state past retirement qualification. Raises are dependent on the agency and the legislature; the last raise for my agency was in 2008.  Overall, the compensation of a state employee is less than a comparable private sector employee. 

 The facilities and equipment of the state agency I work for is in as much disarray as the compensation.  The computer systems & business functions are completely outdated by decades.   Many processes are still completed by manual counting (my line of work is in accounting, scary).  Newer technology currently available has not been fully utilized to its fullest capability due to budget restrictions or lack of training.  The building is filthy, mold grows in the bathrooms and along baseboards.  The walls are in need of painting & the carpet is threadbare & un-padded; tears & runs in the carpet are repaired by ductape.  An entire floor has been closed for almost two years for asbestos contamination.   There are leaky pipes, broken exhaust fans, lights that do not work, the list goes on and on. 

Now I'm sure you are wondering why in the world would you work for the state if it is so terrible?  The reality is that I've worked for the private sector with two major banks.   I've done the fancy Christmas parties, the team outings, catered luncheons;  honestly, there are times I miss the corporate bribery, but working for the state I can actually sleep at night.

I don't stay up all night worrying about what angry jerk is filling my voicemail with death threats, sexual harassment, etc.  I don't have to worry about competing against my peers to squeeze out a bonus for a month.  I don't have to worry about whether or not I am going to meet this month's metrics & whether or not I'll meet next month's metrics after they raise the new minimum standard again.  I won't be losing any sleep over whether the rumors of outsourcing my job to India are true & wondering if my managers are lying to me or are they just as clueless as I am.  I certainly don't have to worry about whether I am doing the right thing for society.  I won't be asked to lie, to commit fraud or forgery, or be asked to do whatever it took to make the bank come out ahead.  I'll never have to choose between doing what's best for a person or doing what's best for the bottom line of a big business again.   

That makes all the difference in the world to me.