Vos Outlines How Collective Bargaining Hurts Taxpayers

The State Capitol is almost back to normal this week with only increased security and a few protestors and curiosity seekers.  Both chambers resumed their business Tuesday, without the 14 Senate Democrats who continue to hold up the budget repair bill by living in Illinois for the past few weeks.  What has continued are some misconceptions about the fiscal necessity of the budget repair bill, which I would like to address.

Collective bargaining has a financial impact.

Under the budget repair bill, collective bargaining will continue for wages and grievances.  However, eliminating the other provisions will free local governments and school districts from costly financial agreements.  Here are a few examples.

• Some state employees are compensated an extra five hours per week for carrying a pager during off-hours in order to respond to emergency situations.  These employees are compensated whether or not they get a page.  For someone who earns $50,000 a year, this requirement can cost the state an additional $6,000.
• A Wausau public employee union filed a grievance to stop a volunteer from serving as a school crossing guard for free.  The 86-year old volunteer is quoted to have said that serving as a crossing guard “gives him a reason to get up in the morning.”
• Under the Green Bay School District’s collective bargaining Emeritus Program, retired teachers get a year’s worth of salary for working 30 days over a three year period.  That’s on top of guaranteed pension and health care payouts.
• Madison school teachers who enroll in the districts Emeritus program receive nearly $10,000 per year in addition to their pension payouts.  This program used to require 20 days of work.  Through collective bargaining, the union negotiated this down to zero days.

 The budget repair bill helps school officials balance their budgets.

The governor’s budget repair bill has the tools needed for local governments and school districts to help offset the proposed reductions from the state.  Many school districts are still calculating the figures, but in Oshkosh, school officials have announced that the budget bill is a wash for them. 

• In the Northwestern newspaper, the Oshkosh schools business director says the district will save $4.6 million by requiring employees to pay 5.8 percent toward their pensions and 12.6 percent to their health insurance premiums.  The reduction in state aid was about $4 million.  Oshkosh school board member Ben Schneider said limiting collective bargaining should provide more than enough flexibility.

 I know that these changes will be difficult but this example proves that local governments and school districts can balance their budgets without impacting their important services and the education of our school children.

Report shows Wisconsin’s proposed budget will improve state’s credit rating.

Here’s another important reason why we need to take these cost saving measures in the budget repair bill and the proposed budget.  Our fiscal discipline is being noticed by investors and bond rating agencies. One of the national bond rating agencies has just issued a report concerning our proposed spending plan. 

• Moody’s Investors Service said, “If enacted, the budget will be a credit positive for Wisconsin by bringing the state’s finances closer to a structural budgetary balance.”  It will help lay the ground work for a better business climate in our state and bring more jobs to our citizens. 

I am confident that the budget repair bill will pass through the Senate in the near future.  The governor’s office and legislative leaders are continuing talks with several Senate Democrats and I am hopeful we will see a resolution soon.  Our efforts to balance our state budget will pay off not only with our credit rating, but also for our children.  We are making the tough decisions today and future generations will thank us for it.