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Many states must trim their budgets to avoid bankruptcies.  Wisconsin is cutting with a vengeance.  Wisconsin’s new governor ran on a platform to cut spending.  It should be no surprise to state government workers or school teachers in Wisconsin that the governor, a Republican in a former Democratic-led state, is honoring his commitment to the voters that voted for him.

Governors around the country are considering deep cuts to meet deficits in their state budgets. President Obama called Governor Walker’s actions in Wisconsin an assault on unions, as unions are one of the President’s biggest political allies. Concerned voters say the president should focus on what is happening in Washington, D.C. and concentrate on the Federal government’s budget that threatens a government shutdown, not think about the election year coming up.

Voters in many states are concerned that state government union members get automatic pay increases in state negotiations, whether justified or not, in good or in bad economic times, especially since learning that public employees generally earn more, and  have richer benefit packages than workers in the private sector.

In Wisconsin, the Democratic state senators left the state for a stay in Illinois, en masse, so they could delay the vote on the governor’s plan, even though the Republicans had the majority of votes necessary to pass the bill. Governor Walker said almost 80 percent of state and local government payroll covers labor costs, so it is a vital part to consider. The voters made it clear that the governor is in charge to restructure the state’s debt, as promised. Long-term stability is needed, not short-term fixes. As collective bargaining costs the state considerable money, it has to be a part of the reduced deficit package.

Teachers walked off their school jobs this past week. News reporters noted local medical school personnel writing medical slips for the teachers to put in for illness or sick leave excuses, with “on the spot” notes for many of the striking teachers.  This was shameful on the part of those teachers who took paid days off to join the striking crowd, and the doctors who lied about the “illnesses” of the people for whom they signed sick leave notes.

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A good example of inequities on income is a Wisconsin state employee bus driver getting a salary of $45,000 and ending up with a total employment package with benefits to total $109,000 a year. Government employees and school teachers have benefits and salaries that are way over the incomes of private industry workers. Because of public safety concerns, the governor said firefighters and police will be exempt from this arrangement.

On the other hand, the governor is trying to go too far.  He has been accused of being union busting, and his plans to require union members to revote on union membership each year, feels like more than just reducing state debt, and balancing the state budget.  Collective bargaining rights could be affected for the long run and that could be construed as union busting.. The governor should focus his efforts on the main concessions the state needs to balance its budget; getting public employee union to agree that their members would contribute to their state pension plans, and pay 12.6 percent of their health care premium costs, of the state program.

The governor said there was no short term fix, only long term solutions to solve their budget problem. He thinks that collective bargaining is responsible for state and local government budget problems.  But some states without unionized workers have similar shortfalls, so the problem is not just unions.

When employees want increased salaries and benefits, many public officials roll over and agree to the demands.  They do this for two reasons.  First, government workers vote, and there are a lot of them.  They have high turnout rates, and bring their families out to vote, too.  Second, governors knew that when they raised pensions, it would not affect their own budgets.  Instead, some future governors would have to pay for it.  Well, those future governors are in power now, and the bills have come due.

Spending cuts have to be made. Reform is overdue.  Voters want long term solutions.

We need to go down a different path to rein in spending and cut costs.  It would be sensible to do this without totally eroding collective bargaining.  Another election year is coming up and the voters will speak again. Stay tuned!

— Bernard Featherman is a business columnist and past president of the Biddeford-Saco Chamber of Commerce. He can be reached by e-mail: bernard@featherman.com.



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