Officials expect big local impact from budget repair legislation
JANESVILLE — Gov. Scott Walker's budget repair bill would cut the wages of thousands of local workers.
The workers teach the children, plow the roads, pick up the garbage and provide many other services in Rock and Walworth counties.
Local workers would be required to pay at least half of the contributions to their pension plans and probably will be forced to contribute more to their health plans.
How much more? That's up to local officials.
Walworth County Administrator David Bretl said he's concerned about workers' reactions to the loss of bargaining rights. He is not alone.
"There's an emotional impact as to what the economic impact for employees will be in weeks to come, how it will impact their families," said Milton City Administrator Jerry Schuetz.
"The impact on morale, when staff are giving even more of themselves on a daily basis to meet the escalating needs of our students, will be profound," Evansville Superintendent Heidi Carvin said.
One big unknown is health insurance.
Governor's spokesman Cullen Werwie said it's not true, as some have reported, that local employees would have to pay 12.6 percent of their health-care premiums. That's the figure for state employees, but local councils and boards would set the employee health insurance contributions, Werwie said.
Local governments could set the health-insurance premium at any percentage they choose, Werwie said.
That uncertainty aside, the biggest state teachers union estimates that teachers could see an average loss of $400 to $600 a month from their paychecks, said Christina Brey, spokeswoman for WEAC.
Workers could get some of that back if they opted out of paying union dues, as the bill would allow. Full-time Janesville teachers pay dues of $719 a year, which averages about $60 a month.
The loss of funding would mean the union would not be able to provide its current member services, Brey said.
Those services include experts on professional development, lawyers that help in bargaining and grievance proceedings, access to lobbyists, and supporting political candidates.
Grievance proceedings could become a thing of the past, however, as the bill would reduce a union contract to one item: wages.
After current contracts expire, all provisions of past contracts would go out the window. A union could not negotiate for benefits, grievance procedures or working conditions. Only wages.
Wages could rise only as fast as the Consumer Price Index, unless voters approved higher wages in a referendum.
Brey said the CPI provision is unclear: What happens if the CPI goes negative—would workers see their wages cut?
Local and state sources expressed uncertainty Monday and Tuesday about the precise meaning of all the bills' provisions.
Delavan City Administrator Joe Salitros said that other than the health insurance and pension changes, he wasn't sure how the legislation would affect the city.
Edgerton City Administrator Ramona Flanigan declined comment, saying that there's too much conflicting information.
With that uncertainty in mind, and knowing that the Legislature could alter Walker's plan, here are answers to some of the questions that have been raised in recent days:
Q: How soon would the bill take effect?
A: As soon as Walker signs it, although local contracts may have provisions such as the ones for state employees, which require a 30-day notice before becoming void, Werwie said.
Q: Would the bill affect existing contracts?
A: No, Werwie said. Local governments must honor existing contracts.
For example, the bill could not override the Janesville teachers' contract, which lasts through June 2013.
Q: What happens if a union contract is being negotiated now but isn't finalized until after the law changes?
A: It appears unions could bargain only about wages and only up to the increase in the CPI.
Evansville School District Business Manager Deb Olsen said she doesn't have enough information to say how this would affect the district's current contract negotiations.
Milton schools Superintendent Bernie Nikolay said his district is holding off on contract talks with the 237 employees in its teachers union.
"We will not bargain until this all shakes itself out, until we will know whether the governor's proposal is in place or whether it will be something different," Nikolay said.
Q: Would public employees be able to strike?
A: The current ban on public-employee strikes would remain, Werwie said.
But if the state tells employees that they have no right to bargain for working conditions, what avenue is left for them to be heard? Brey asked.
That isn't a threat, Brey said. "I just think that's what members are asking—what voice do we have, thenn"
Q: Would the bill affect money already paid into the Wisconsin Retirement System?
A: No, Werwie said. The bill is not retroactive.
Q: How would this affect local budgets?
A: The budget repair bill would help local governments balance their budgets, but Walker is expected to announce cuts in aid to local governments when he announces his biennial budget plan Tuesday.
Carvin and her counterpart in Janesville, Karen Schulte, said the budget gains districts would see from workers paying more for their benefits would be canceled out by cuts in state aid.
Schulte said that if the result is budget-neutral, then Janesville still would have to deal with its projected $9.7 million budget shortfall for 2011-2012.
Some workers might speed up plans for retiring if the bill becomes law, Olsen said, and that would help the Evansville district on staffing decisions, but if not, the district might face layoffs.
John Forester, a lobbyist for the Wisconsin Association of School Boards who was briefed on the bill last week, said he expects the state to cut aid by about $500 per student.
Forester suggested in a video briefing sent to association members Monday that districts would be able to make up for the aid cut through the cuts in employee benefits.
Q: Could a local board go even further, cutting back on health benefits?
A: "I am seeing nothing requiring a board of education to honor any agreement," Brey said. "It is simply whatever they want."
Q: What will all this mean for unions?
A: Rock County Human Resources Director David J. O'Connell said the loss of bargaining rights would force the county to figure out how those formerly protected employees would fit into the policy and procedures established for non-represented workers.
Brey said the bill would permit a teacher to be fired for any reason with no recourse to a grievance procedure. A public-employee union would have to hold a recertification vote once a year. Union members would not have to pay dues.
"You're basically throwing decades of worker and employer relationships out the window," Brey said.
That, combined with a loss of earnings, does not bode well for the quality of people entering the teaching profession, she argued.
"How are we going to get those people and keep highly qualified people?" Brey asked. "Everybody says we need the best and brightest, and yet the educators in the schools have no voice."
Q: What's going to happen in our schools?
A: Tony Evers, the elected superintendent of public instruction, on Monday sent a letter to legislative leaders. Evers wrote, in part:
"This bill will shatter relationships among educators and school leaders, undermining current innovations around teacher compensation, evaluation and improvement. It will have a chilling effect on teacher recruitment and sends a terrible message about the value of public service. … These efforts will hurt our classrooms, our kids and the people who educate them."
Walker on Monday rejected the notion that children might be harmed. That could only happen if children were the ones paying for health insurance or pensions, he said.
Q: Won't cuts to these workers' incomes translate into fewer dollars being spent on local businesses?
A: John Beckord of the business group Forward Janesville said local businesses are likely to feel at least some effect when hundreds of local workers start earning less.
But the state has to fix its budget deficit some way, Beckord said, and if it's not these cuts, it would be increases in sales, property or income taxes, and that also would mean fewer dollars spent locally.
Evers said the Walker plan is too much, too fast.
"Hastily enacting such significant salary cuts will take money out of the local economy and could jeopardize our fragile recovery, especially in rural areas. In order to minimize the economic harm, the Legislature could enact some benefit changes immediately, while phasing in others during the next biennial budget," Evers wrote in his letter.
Q: Why are police and firefighter unions exempted by the plan?
A: Some have suggested political payback for support in Walker's election, but Forester said the governor told him and others on Thursday that Walker "wants protective services supportive if there is significant labor unrest."
Elkhorn City Administrator Sam Tapson said he is concerned that excluding police and firefighters would create a two-tier system for public employees.
Feb 17, 2011 at 7:40 p.m.
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Thank you for this thoughtful and well-written article. It's great to have this information about how the bill will affect us here at home.
Feb 17, 2011 at 7:02 p.m.
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lovemycountry... cutting benefits is income cut. New teachers with loans will consider what is on the table to conclude Wisconsin is not a viable proposition. YOU CAN FOOL SOME OF THE PEOPLE SOME OF THE TIME....
I am sure you have heard that saying.
Walker can fool you, but bright kids will leave Wisconsin.
By the way today the police showed support and I would like to thank them, along with the firemen and other service groups.
Love my country too, and hate to see a dictator with his threatening finger on the button.
Feb 17, 2011 at 4:52 p.m.
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Mouse - again, no public employee's pay is being cut. It will go up without having to take Doyle furloughs.
Feb 17, 2011 at 4:47 p.m.
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lovemycountry
Kids coming out of college have loans to pay off, in excess of $60,0000 to $100,000 + interest. On the peanuts this idiot will offer them, most already Know they are too smart to stay in Wisconsin. They would never get there loans payed back.... do your math or call a loan office.
May you could just have baby sitter service for wisconsin.
Feb 17, 2011 at 4:37 p.m.
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Would be interesting to know if his old lady gave births at home or in a hospital, with the aid of the very people he is sticking it to?
Can only imagine they had private education. I think it's like having your cake....
Feb 17, 2011 at 4:09 p.m.
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Welcome to Nazi Wisconsin, courtesy of the Nazi Republicans lead by Adolph Walker.
Feb 17, 2011 at 3:35 p.m.
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Teachers seem to be doing ok, we'll still have plenty of teaching majors. Just plug in your teacher's name to see the salary + fringe benefit amounts.
http://www.jsonline.com/watchdog/dataond...
Feb 17, 2011 at 2:21 p.m.
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BunBun... just to understand you. Snow ploughs go out in the summer?
Nurse and EMT'S don't serve any purpose? Teachers don't take kids from school through college into service professions. like fire and police or doctor. The fact that kids turn into members of society that do cancer research or daycare is just a figment of your imagination, right?
OK. you win!.... just one more thing based on the family tree theory, how many relatives might branch off from a single union worker that are private sector workers? Enjoy slapping yourself in a mirror!
Feb 17, 2011 at 1:46 p.m.
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billnewbie - My guess is you will have a lot of college students changing their majors from the teaching profession!
Feb 17, 2011 at 12:50 p.m.
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funny how I keep reading posts along the line of "you are just jealous" or "why are you against the right of the public sector to organize?"
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If I had any say in the barganing process then I would not have a problem with collective barganing for public employees since it is my money you are barganing for but since it is unions barganing with a bureaucrat I get no chance to voice an opinion.
Jealousy is not part of the equasion. It is my money and I resent the opinion that I have too much so it should be taken from me and given to people who produce nothing.
Feb 17, 2011 at 12:08 p.m.
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Why are the unions blaming Walker? Doyle is the one that spent so much money while he was in office. If Doyle had cut down on spending, then Walker wouldn't have to clean up Doyle's mess. How can Walker negotiate a collective bargaining agreement with the unions when our state is in debt? Doesn't make sense to me. Where was all this outrage when Doyle was spending taxpayer money like it was water? Sounds like you're getting mad at the wrong person. Walker is a convenient target because Doyle is out of office.
Feb 17, 2011 at 9:24 a.m.
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@hodag60s: So to you, moral courage is decimating the middle class? See to me, taking away so much from so many working-class Wisconsin families just so he can give our taxpayer money to rich fatcats who don't need another dime, that's totally immoral. And as to the "silent majority," you go ahead and stay silent. It makes it that much easier for the working people of our state to have their grievances heard.
Feb 17, 2011 at 9:11 a.m.
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Hang tough, Gov. Walker and the silent majority. What you are doing matters critically not only for your taxpayers and their children and grandchildren, but also for every other state in the nation. Momentous times require moral courage. You are leading the way.
Feb 17, 2011 at 8:59 a.m.
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The fair way to handle this is for Walker to immediately pay back the state the ~$140 million he gave to special interests in order to manufacture this "crisis" so he can finish off unions in this state. And if you think it's going to stop with public workers' unions, think again. Unions have greatly influenced labor laws in Wisconsin and the U.S. If the labor unions in general are utterly crippled or wiped out, expect right-wing lobbyists to push for legislation like repealing or slashing miniumum wage, lax workplace and environmental regulations, maybe even child labor laws. If this bill goes through, expect massive civil unrest in this state and many more.
Feb 17, 2011 at 8:43 a.m.
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TCB IT won't be able to buy anything if the moron gets this bill passed as of now it gets the support and protection from unjust actions of employers and Dictatators, it lets them be heard thru bargaining and compromise It protects them from people like walker who thinks he can just take it all and line his pockets and line the rest of his puppets pockets that support what he is doing. If you didn't catch the statement that this would not affect police, fire and state patrol workers that is because their union endorsed him Yet that doesn't mean they all voted for him. As I see alot of fire fighters protesting this. It is an attack on unions as only WALKER WANTS TO HAVE A SAY and Control and Dictate all of Wisconson choices and if he can get away with this and shut down unions Who will be next?. Attacking the unions and giving them no bargaining rights for anything but wages is So wrong and you will see the outcome is not going to be good, as this dictating, anti-human leader we have, needs to get the the hell out and get some one in that CARES for the people and lets them be heard and does right by them. Just my opinion and input as a life time Union Worker and Life time supporter. NO ONE SHOULD BE FIRED FOR STANDING UP AND FIGHTING FOR THEIR RIGHTS and anyone who thinks the should need to look at reality of the working class and of these ones being targeted as they are the backbone to our FUTURE......They are our heros and the ones who give our kids hope Through their hardwork and dedication. Some go beyond their jobs and take it home.
Feb 17, 2011 at 6:31 a.m.
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Ah, jealousy rears it's ugly head. "They can't have it because I don't!" Walker and many commenters want to take away public employees right to collective bargaining. WHY? All Wisconsin residents that work in the private sector have the RIGHT to organize and bargain collectively, yes, they have that RIGHT. Some employees choose NOT to exercise that right, their choice. If private sector employees have that right, why can't public sector employees? I challenge anyone to give one legitimate reason why public sector employees shouldn't have this right also. Sorry folks, "I don't think they should" is an opinion, not a reason.
Feb 17, 2011 at 1:32 a.m.
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but i am happy to have a job and insurance. i just had to change how my family did things.
Feb 17, 2011 at 1:30 a.m.
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i just think that the economy taking a tank is now possibly going to hit the wallets directly, of the state employed people, this is being made a major deal. and if they say that it has hit their wallets. i say really ?
how much of a pay CUT did any of the state employed people take, i know i have lost about 30000 this last year.(I DID NOT WORK FOR GM) my old job closed and i had to find a new job, and took a big pay cut. just like alot of people here in janesville and surrounding areas, have had to do. that is if they can find a job around here. some have had to move, or split up the family. one person lives here because they can't sell there house and the other works in another state. so hmmmmm. yes it is that bad, in my opinion it is. .
Feb 17, 2011 at 1:17 a.m.
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Why are we so envious of the person making a living wage and good benefits? We're not talking about people living high on the hog here. Are things that bad in Janesville and in the rest of the country?
Feb 17, 2011 at 12:48 a.m.
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wow, this is ugly. i had to say that first.
1) i thought the teachers can't strike ? why are there school closings all over the news? i would call this a srike. the teachers are breeching their contracts. cut and dry. say what you want but it is what it is.
2) 60 dollars a month did i read that right for union dues ? wow i hope i read that wrong. i pay 5 hours of my hourly wage, for each pay check. PER PAY CHECK. and then i still have to pay for medical out of the rest of my check. how much are they having to pay for medical? hmmm let see i pay another 190 per pay check (and that does not include vision or dental)so per pay check i see like 300 gone and then have to pay taxes and stuff.
3) all this stuff wouldn't take effext till when? 2013. so the kids right now are suffering (ya know what so many people are saying about other school problems, children suffering because of this or that)suffering because they are not in class.
i do say that the government people (walker and everyone else included in madison) should be falling into this also. they should take the biggest cuts in pay. there pay is insane. and for what. to post up some signs " wisconsin is open for business" COME ON!!! i am so glad that i did not vote for him!!!!
Feb 17, 2011 at 12:47 a.m.
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Even if King Scott manages to do away with collective bargaining in the state. He can't do away with the existing state employees contract. Since it has not been agreed upon,the existing contract remains in effect. The rogue Governors health care and pension increases can not be made effective. In theory the whole thing could remain in limbo forever. I don't think King Scott and the royal family thought this one out very well.
Feb 17, 2011 at 12:27 a.m.
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Apparently some people take the "servants" half of that phrase a little too seriously.
Feb 17, 2011 at 12:03 a.m.
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Welcome to reality land "public servants".
Feb 16, 2011 at 10:30 p.m.
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The only way the children could get hurt is if they get caught in the crossfire as the police, firefighters and National Guard fight it out with the radical teachers. What happens to police and fire fighters after the unrest is squashed? Will they then be added to the list or permanently exempted?
So the quality of education under the new administration will increase or decrease? Oh, who cares, were saving money!!!
Feb 16, 2011 at 10:09 p.m.
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seriously,why would walker care,his bills are paid,its not coming out of check,hes living the high life,so trust me he dont care about you,i bet more than half of these people flipping out voted for him,hahahahahaha.and do these workers deserve to lose all this?uh thats a big hell no?i think some folks from mendota should go relieve him of his position,lol.omg i feel so sorry for all the people that voted him in,he betrayed every damn one of you.:( just another politician looking out for number one.
Feb 16, 2011 at 9:27 p.m.
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"(...) The nonpartisan Legislative Fiscal Bureau recently released a memo detailing how the state will end the 2009-2011 budget biennium with a budget surplus.
In its Jan. 31 memo to legislators on the condition of the state’s budget, the Fiscal Bureau determined that the state will end the year with a balance of $121.4 million.
To the extent that there is an imbalance -- Walker claims there is a $137 million deficit -- it is not because of a drop in revenues or increases in the cost of state employee contracts, benefits or pensions. It is because Walker and his allies pushed through $140 million in new spending for special-interest groups in January. If the Legislature were simply to rescind Walker’s new spending schemes -- or delay their implementation until they are offset by fresh revenues -- the “crisis” would not exist."
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Walker's BS gets more infuriating by the minute.
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http://host.madison.com/ct/news/opinion/...
Feb 16, 2011 at 8:48 p.m.
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The 20 "right to work" states are the fastest economically growing states in the country, with increasing per capita income. Wisconsin now has decreasing per capita income.
Feb 16, 2011 at 8:30 p.m.
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@TCB - First off, as wonderful as the term "union boss" sounds, organizations like AFL-CIO, AFSCME, WPPA, etc are NOT the union. Every member of the union is the union. They have a right to vote just like their fellow union members do. No one union member (or their vote) is more important than another. If a current union member is not happy with the way their union is handling things they have a right to speak out and work towards getting things changed. It's a democracy.
Those that whine and complain that they don't get anything from their unions? Why aren't they working to change that? They can even seek election as an officer for *their* union. Because *they are* the union. As for union dues? Yup, even those are voted on. Don't like them? Think they're too much? Ask about it. Work towards changing it, but for goodness sakes be informed about it.
Then there is collective bargaining. You're no longer just one employee. Now there are many employees working together towards a common goal with a right to be heard. Without that, the employer can do anything (including using you as a pawn in his political games). There are few limits on what they can do. With a union, it's a give and take. Compromise.
The right to representation. Without it, you're at the mercy of your employer who can fire you at any time and without cause - an at will employee. They can fire you just because they don't like you or have a vendetta against you. It doesn't matter. In a union, you get your choice of representative to come with you. Maybe it's a fellow union member or perhaps the business agent from the third party your union has hired to help them. They'll advocate for your rights and best interests. Still think the actions or decisions related to an individual employee/union members treatment is unfair? File a grievance, maybe even go to arbitration. Why is this helpful? Ask the Milwaukee Co. Court Security Guards if they thought their union dues were worth it.
While favoritism will still exist, union positions at the government level often require some sort of exam to be part of the process because you should be promoted not because of who you know, but *what* you know.
A union is only strong/effective if union members are involved. It's easy to scoff at union dues, complain that they aren't doing what you want them to, and treat your union like it's some sort of external, third party. It's a lot harder to be involved. Still choose not to? You only have yourself to blame. Kinda like voting for your elected officials.
Compromise...democracy...checks and balances...these are American values. This isn’t about modest changes no matter how much Walker wants to insist otherwise. Then again, I’m not surprised. Scott Walker didn't know how to compromise in Milwaukee County and he still doesn't today.
Feb 16, 2011 at 8:16 p.m.
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This may come just in time to help our school district balance its more than $9 million budget deficit problem. Maybe we won't have to lay off so many teachers now and maybe we won't have to cut so many class offerings. And if many of the currently employed teachers want to quit, there's a new crop of eager teacher school graduates that are about to join the recent crop of unemployed but eager graduates. We can make do nicely with a few of those. A large group of young eager teachers may be just what the public schools need.
Feb 16, 2011 at 8:16 p.m.
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A possible way to be fair about all of this is to create a listing of local business that support Governor Walker's proposal and ensure they at least share the pain just a little by losing all of my business. I will start with my bank and pull my account if I they say they support the governor - no answer is a "yes". We all have to share the pain don't we?
Feb 16, 2011 at 7:20 p.m.
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"All Government employees should realize that the process of collective bargaining, as usually understood, cannot be transplanted into the public service." -FDR, 1937
Feb 16, 2011 at 7:07 p.m.
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Walker "wants protective services supportive if there is significant labor unrest."
What is this supposed to mean? He's going to sic the fire fighters and police officers on working people? Walker is a maroon, full-blown, and he's going to do a lot of damage unless public protests force him to back down.
Feb 16, 2011 at 6:58 p.m.
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There is a way to stop Walker's nonsense. Check out the link and make your voice heard.
http://onewisconsinnow.pnstate.org/site/...
Feb 16, 2011 at 6:54 p.m.
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Teachers could opt out of paying 719 for union dues? A huge vitory for those teachers who do not align politically with the hard left union types.
What are the specific services that $719 buys? Can anyone answer this?
Feb 16, 2011 at 6:10 p.m.
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Amen to that gmaof3!
Feb 16, 2011 at 5:45 p.m.
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Walker on Monday rejected the notion that children might be harmed. That could only happen if children were the ones paying for health insurance or pensions, he said.
I believe this is the bottom line on the entire situation. And if teachers take it out on children, they can find the nearest door. There are PLENTY of qualified substitute teachers that would gladly step into the classrooms!
Feb 16, 2011 at 5:42 p.m.
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They would fall back on the Civil Service Law. I wonder if anyone has read it?
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