State Budget Woes – Northeast Democrat Governor’s & Mayors Follow Walkeresque Cuts - More to follow as Stimulus ends in FY12

A Classroom circ 1950 pre budget woes - image: pinellas county schools k-12

When Wisconsin Governor, Scott Walker, took over the task of filling a budget gap, he went straight for the Public Employees Unions, asking those teachers to contribute to pension and health plans, at a rate slightly lower than those in the public sector. In addition he proposed ending forced union enrollment, giving teachers an option to opt out of the Public Employees Union, save the money on dues, and buy into the State’s Health Insurance, rather than the Teachers Unions Health Insurance. It was the straw that broke the camel’s back, as thousands of union protestors moved into Madison WI and the battle began. The Democrats in the Senate fled the State in order to avoid a vote on the budget, which includes the aforementioned provisions, in hopes that with enough pressure, Walker would change his mind. He hasn’t.

As of yesterday Walker issued anultimatum to those State Senators telling them they had 24 hours to return – or else. The or else are pink slips to over 1000 state workers. The press is comparing Walker to Reagan vis a vis “union busting”:

“What began as one small state trying to rewrite the rules of labor relations has blown up into what could be the biggest confrontation with American labor unions since then President Ronald Reagan fired striking air traffic controllers in 1981.”

(Reuters).

It appears that Walker is not alone, however, in the need to make deep cuts, confront Teachers unions and put State Houses in order. With the expiration of the Stimulus, those States that had kept the status quo or worse, increased spending based on a limited Stimulus, are now faced with making decisions that fly in the face of the Progressive “Tax the Rich”, mantra. The problem – the “Rich” who, in certain states, were taxed more, simply packed up and left, with the high and sustained unemployment, state income suffered from a drop in real middle class taxpayers, and the result is that Public Employee Unions are now in a power struggle over cash. Nowhere is this more apparent, that in the smallest state in the Union: Rhode Island.

Rhode Island has a state legislature and senate that is similar in scope to neighboring Massachusetts, with Democrats outnumbering Republicans by wide margins. In recent months, however, individual cities have taken steps to rein in spending – mayors are going to – the Unions, specifically Teachers.

An article in this morning’s Boston Globe highlights Providence Rhode Island, where, the Mayor is being compared to Scott Walkers double. The City of Providence, the State Capital has, in order to salvage the budget fired all of its teachers, in a move to get out from under the high cost of union benefits – which are unsustainable. The icing on the cake:

“But the mayor is facing a $40-million school budget deficit in a district that serves fewer than 24,000 students (PK-12). Taveras and the school committee are not laying the teachers off. They are firing them, which allows them to circumvent seniority bumping rules, whereby teachers will be called back to work on the basis of their years of tenure. This move allows school leaders to select teachers they think are the most effective.”

The union, of course is up in arms, and the author of the Boston Globe Article, Jim Stergios, points out that Massachusetts may be next. The income of larger urban areas in Massachusetts is derived from tax receipts and aid from the Commonwealth and the Federal Government (both broke), and two in particular are mentioned in the article as on the brink: Holyoke and Fall River. It is noted that both are “worse off” than Providence, and additional State cuts to municipalities can be anticipated in 2012.

Over in New York State, Governor Cuomo is facing an insurrection in his House, as the Governor has suggesting cutting benefits to School Superintendents, the rambunctious New York Democrats in the legislature are, of course, making waves. (Fox 23 news).

All of these Governors and Mayor from Walker to Cuomo and more to come as budget woes will force a realization that there is simply not enough money in this economic climate to sustain the lavish lifestyle the Teachers Unions and public employees unions (SEIU) to which they have become accustomed.

It is not about “union busting” per se, it is about survival of the state, asking those employees to take nominal cuts, and have an opt out to being in a union, (Wisconsin), or in the case of Providence, just firing the teachers, in order to hire back those deemed competent (now, that’s union busting, taking the Holy Grail of tenure and throwing it out based on competency). Come to think of it, it does appear to be a bit like “Union Busting”, but as the nation looks on, they do understand that there are those who need collective bargaining, and perhaps those who do not. Those that put their lives on the line, yes, those that don’t – do not – very simply put.

As a byproduct of the rage against inflated salaries and pension for public workers and retirees, the media (local) has found a new story line which is bound to bring in viewers. Today, WWLP Springfield MA an NBC Affiliate promoted today’s news cast with a Special Report, on – yes – which city (Springfield) retirees have the highest pensions. Of course, this is in the interest of the people’s right to know where there money is going – suddenly.

In retrospect, although the unions are taking center stage, along with their alleged protagonists (the Governors or Mayors), sooner or later those that rabble rouse professionally, must protect those rank and file who rely on having a job and simply let go of some of the power they have – or face a staggering loss of power as the balance of towns, municipalities and state governments realize they can no longer afford the “high price tag” associated with unionized public employee unions. It will not be a choice, it will be a necessity, as one cannot manufacture money (unless one is the Fed), to keep up pensions and salaries and health benefit plans that are the envy of the private sector (which, is, in the long run, more effective.) Case in point: in Western Massachusetts public schools have an average graduation rate in larger urban areas of approximately 50%, in private college prep schools, the graduation rate is 100% with those students going onto a 2 to 4 year college (100%), the cost of educating these students: Public schools: $12,000 to $14,000 approximately, the cost for college prep (varies) approximately $10,000. The question arises, is, in a private setting, students are able to learn, graduate and move onto college at a near or perfect rate, how is it that the nation’s most funded school systems, with union teachers, cannot manage to do the same, especially as they are obviously better funded.

In reality they are not, the funding for students in public schools includes salaries and benefits of the union teachers and administrators, and what little is left, goes towards education. For example: the City of Holyoke, which is named in the Boston Globe article: budget for FY 2009 (doe.mass.edu/profiles/finance), budgeted $13,000 per student, 34% of which went towards “classroom and specialists teachers) $4,907, another 10.4% went to “Insurance, Retirement Programs and Other” or $2,213 per student, other categories having to do with “Instructional Leadership”, “Other Teaching Services”, “Professional Development”, added approximately $2,000 to the pot (for the Teachers), out of that $13,000 in Holyoke Taxpayer Dollars, money spent for books and guidance amounted to: less than $1000 out of $13,000 per student. One can anticipate that there were increases in 2010 and again in 2012. It is any wonder therefore, that Massachusetts, although ironically, they do lead the nation, fail reading at proficient levels, and have dismal graduation rates?

This is what the nation has discovered, and as the press looks for increased ratings, more of these “exposes” will occur - Walker may have started the ball rolling, but the revelation of the incompetence and greed, will be the end of the era substandard unionized education.

Public Employee Union Protests Spread beyond Wisconsin – General Public Views Disdain for Union Antics - Analysis

As the brouhaha in Wisconsin, caused by Public Employees unions, aided by union activists from across the nation,has spread to other states, public opinion polls on these protests show that the Unions may be taking the wrong tactic to gain sympathy.

As the media reports on the birth of Public Employee unions in Wisconsin, they also point out that there are states that have right to work laws. The states with Right to Work laws, do not offer the unions a foothold into every facet of the workforce. These states include: : Idaho, Nevada, Utah, Arizona, Wyoming, North and South Dakota, Nebraska, Iowa, Kansas, Oklahoma, Texas, Arkansas, Louisiana, Mississippi, Tennessee, Alabama, Georgia, Florida, South Caroline, North Carolina and Virginia (source NRTW.org).

When one evaluates states that are “Right to Work” (i.e. no forced unions), one finds that, for the most part, those states have somewhat lower unemployment rates than their unionized counterparts: (Source: Economic Policy Institute)
The fact that employers are more prone to set up shop in states where unions do not have the upper hand, lends to an exodus of those job seekers from states that have forced unionization. Interestingly, in reviewing the 2010 census - those states that lost population and congressional clout, are not “right to work" states. (See Map here at Washington Post.com

The public perception of unions has dropped significantly given the recent events in Madison, with approval for public unions at historically low levels (Exellent treatment via TPMDC), and even progressives realize that a “Greece Like” scenario played out in the United States may not endear unions, of any sort, be it public or otherwise (Article Madison.com, “Could a General Strike Happen here”?)

Historically, union strikes and demonstrations during the 1930’s were aptly dubbed the “red menace”, and resulted in riots, and attacks on all unions, including non-government unions. The public opinion at the time was negative to say the least, and in order to rein in spending, President Roosevelt was prompted to announce wage cuts to unions, which “(aroused) unions' anxiety” Roosevelt, not unlike Walker in Wisconsin, stuck to his principles.

What the American people, in general understand, is with the rise of the unions, came the loss of competitive industry on a global scale, well as the loss of employment opportunities in a variety of industries - they are gone forever, under high union wage and benefit demands and a U.S. interest rates that does little to nothing to entice employers to set up shop in the United States. There are, of course, a place for unions in the American society, for those who face dangers in the workplace, firefighters, police, and meat packers, (among others) who’s livelihood puts life and limb at risk. That said, there are those such as “Government employees” whose sole risk is a hangnail - the public gets this difference. As the SEIU and other powerful unions shout for more benefits, wage increases, and the ability to force teachers, and others who may not face danger, into unions, it is, perhaps for the first time since the 1930, making headlines in living rooms across the nation.

As the signs and shouts of the protestors grow increasingly against one Particular Party (i.e. Republican), it becomes increasingly clear to those watching the evening news at 6:00, that the Democrats support these unions. In this way, the Unions who are at current low public opinion, and the Democrats, become branded together – note: Democrat lawmakers’ antics of fleeing states for their unions are well documented as well.

This pandemonium is not about workers rights at all, rather about how much money the unions can fleece from the workers and hand to the Democrat lawmakers who will grant them concession. Union organizers (paid consultants to unions, or professional rabble rousers) have an average salary of of $60,000 annually. The bosses are in the six figure range, while teachers in Madison Wisconsin (ground Zero so to speak), average $100,000 annual salaries. The unions and teacheres in Madison did agree to minimal increases in contributions to both medial and pension fund suggested by Govenor Walker, however the unions are loath to give up a portion of their collective bargaining power, which would allow these teachers to opt out of the union forced medical plan and join the state workers medical plan instead. In addition, there is that sticking point whereby Teachers would be able to opt out of joining the union entirely, which has set these protests in motion – it’s about the money – the union money.

How do those teachers competantacy factor fare nationally? In a recent release of reading scores nationwide, approximaltey 40% of Wisconsin 8th graders are proficient in English (NCES.ed.gov), which leads one to believe that the Govenor may be onto something, and why he has the support of over 70% of the Wisconsin populace.

As goes Wisconsin, Ohio, and Indiana, so will go the public opinion across the nation. The Unions, in their greed, (it’s for the children) have managed to brand themselves to the Democrats, just in time for the 2012 elections and should this display of “Greece-Like” public union street revolts, not abate soon, those images will be emblazed upon the minds of voters as they head to the polls in 2012, making 2010 look like an average year in comparison.

First Protests in Support of Wisconsin Public Employees held in Texas, Nevada and North Carolina draw “hundreds” to State Capitals.

Austin Union Members (some Teachers) protest in support of Wisconsin - photo the stateman.com

In Austin, Texas over 200 Union members, some of them teachers, protested at the state capital (Austin Statesman), in Nevada hundreds of Public Employees Union Members protested in solidarity (Las Vegas Sun), and in Raleigh NC activists rallied to show support for their Wisconsin counterparts (WRAL), however, most of that article was dedicated (video and print) to the protests in Wisconsin, not mentioning turn-out at the Raleigh rally. Additional rallies are planned for today through the 24th in sixteen additional states, with a few counter protests planned by State Tea Party groups. The apparent lack of interest by rank and file demonstrates two important facts, one, most of the nation’s schools are out on winter break for the week, and the rank and file would rather stay out of the “fray”. Perhaps, just perhaps, teachers in districts across the nation, may want the opportunity to compete for higher wages based on competence, and be independent in the ability to join or not join a union in those states who do not offer “right to work” laws (which ban unions from mandatory enrollment of employees).

In Wisconsin, the Union has conceded, to date, to the slight increases in deductions for both health and pension, requested by Governor Walker, , however, they are standing somewhat adamant about the Governor’s proposal to end collective bargaining on benefits only, and institute a right to work provision whereby teachers would have the option of opting out of joining a union. In addition, Union leaders have asked teachers to return to the classroom this week. A move that would prevent teachers from being fired at the local level where school boards have that ability.

Meanwhile, the Governor refuses to back down, while the Wisconsin Democrat State Senators remain in hiding in Illinois in order to avoid voting on the budget bill that would end union dominance in the public sector. While out state, WI Republican Lawmakers (who are in the majority and can, therefore, vote on bills with the exception of the budget), will work as usual. This move by the Democrats in the Senate has not gone unnoticed by state residents given the comments made under an article at the Madison Journal when they first fled the State.

What this boils down to is the realization by teachers, unions as well as the public, that there simply isn’t the money available to continue to fund up to union standards. In Detroit, Public schools are consolidating, to make up for budget shortfalls, which includes laying off teachers and staff and closing half of the public schools. (Detroit News). This is what occurs when a state has fewer taxpayers than public employees and those on the proverbial “dole”. This may be why attendance at rallies in support of Wisconsin Public Employees has been somewhat slim.