Vermont is known for its scenic beauty, vibrant communities, and strong public services. But when it comes to the size of its public sector workforce, the Green Mountain State may be punching above its weight. Recent comparisons suggest Vermont has one of the highest ratios of public employees per capita in the country, raising questions about efficiency, spending, and fiscal responsibility.
How Vermont Stacks Up
Vermont employs 589.4 public employees per 10,000 residents, significantly higher than the national average of 500. Neighboring New Hampshire and Massachusetts employ far fewer public employees per capita, yet both manage larger populations and economies. To put this into perspective:
Table 1: Public Employees per 10,000 Residents
| State | Employees per 10,000 Residents | Rank (1 = Leanest) |
|---|---|---|
| Vermont | 589.4 | 42nd |
| National Average | 500.0 | — |
| New Hampshire | 482.1 | 11th |
| Massachusetts | 492.1 | 16th |
Even when compared to other rural states like Wyoming and Montana, Vermont’s numbers are striking. Wyoming employs 854.3 public employees per 10,000 residents, the highest in the country, largely because of its vast land area and the need to deliver services across dispersed populations. Montana, another rural state, employs 511.3 public employees per 10,000 residents, closer to the national average than Vermont (Rich States, Poor States).
Efficiency by the Numbers
Beyond the raw employee-to-resident ratio, another important measure is GDP per public employee, which provides a sense of the economic productivity associated with the workforce. Here’s how Vermont compares to nearby states:
Table 2: GDP per Public Employee
| State | GDP (2023) | Public Employees | GDP per Employee |
|---|---|---|---|
| Vermont | $45.4 billion | 30,000 | $1.513 million |
| New Hampshire | $112.5 billion | 60,000 | $1.875 million |
| Massachusetts | $799.6 billion | 350,000 | $2.284 million |
While Vermont’s GDP per public employee is respectable, it lags behind both New Hampshire and Massachusetts. This suggests Vermont’s public sector workforce is less economically productive on a per-employee basis. The gap with Massachusetts, where GDP per public employee is over 50% higher, is particularly noteworthy given the Bay State’s urban challenges.
The Cost to Taxpayers
A high concentration of public employees comes at a cost. Vermont’s state budget allocates a significant portion to salaries, benefits, and pensions for public employees. For taxpayers, this translates into higher property taxes, income taxes, and other fees.
According to the National Education Association’s 2023 report, Vermont’s per-student expenditure was $26,749 in the 2022-2023 academic year, ranking third highest in the nation, even as enrollment continues to decline. With fewer students to serve, the state has yet to make substantial workforce reductions in its education sector, leaving taxpayers on the hook for an increasingly expensive system.
What Drives Vermont’s Numbers?
Several factors contribute to Vermont’s relatively large public sector workforce:
- Rural Service Delivery: Vermont’s small and dispersed population means more employees are needed to maintain roads, deliver healthcare, and provide other services across rural areas.
- Strong Public Commitments: Vermont prioritizes comprehensive public services, including education, environmental conservation, and social welfare programs.
- Policy Momentum: Once positions are added to the public payroll, they can be politically challenging to eliminate, even when population or service demand declines.
Despite these justifications, Vermont’s numbers stand out when compared to neighboring states like New Hampshire, which also serves rural populations but employs far fewer public sector workers per capita.
Room for Improvement
While Vermont’s commitment to public services is admirable, it’s worth questioning whether the state is getting the most value out of its workforce. Neighboring states and national averages suggest there may be room to streamline operations without sacrificing quality.
Efficiency Opportunities:
- Consolidation of Services: Vermont could explore regional service delivery models for towns and schools to reduce redundancy.
- Technology Integration: Investing in digital solutions for administrative and field operations could reduce manual labor and paperwork.
- Targeted Audits: Independent efficiency audits could identify areas where resources are underutilized or duplicative.
Final Thoughts
Vermont’s high ratio of public employees to residents raises questions about whether the state is operating as efficiently as it could. While factors like geography and public service commitments explain part of the story, comparisons to neighbors like New Hampshire and Massachusetts reveal opportunities for improvement.
As Vermont faces rising costs from energy transitions, a shrinking tax base, and federal funding uncertainties, ensuring its public sector is lean and effective will be crucial. Streamlining operations without compromising service quality might just be the key to Vermont’s fiscal sustainability.
Dave Soulia | FYIVT
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