State and Federal Workers are Mostly in State Capitols With Higher Cost of Living:

There is a false argument in the public budget debate that vilifies public workers for having higher average salaries compared to the private sector. What is completely left out of the equation is the fact that most public sector workers work in state Capitols and our nations capitol where the total cost of living is significantly higher than in rural areas. Rental and real estate values can easily be 4-5 times higher in Washington DC for example than they are in most of the USA.