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Wisconsin carries a proud tradition of hard work, passed down
from generation to generation. Public employees are a part of
that proud tradition.
The state is at a critical financial junction with decisions
affecting both its current and future solvency. Like most
private employers asked of their employees in the past few
years, Governor Walker is looking to public employees for
sacrifices as well.
Wisconsin has a current fiscal year deficit of more than $130
million. The state’s biennial budget deficit of $3.6 billion
must be fixed by June 30th. We can no longer afford delay
tactics which simply pushes the state’s financial problem onto
our children. Budgetary cuts must occur. Therefore, Governor
Walker has introduced a state budget repair bill.
According to a memo released by the non-partisan Legislative
Fiscal Bureau dated January 10, 2011, the average Wisconsin
state employee compensation package in 2010-2011 was $76,500.
Computed by the State Budget Office, employee salary and fringe
benefits comprise more than 60% of state government general
purpose revenue (GPR) operation costs.
Taken off the Department of Public Instruction website, the
average Wisconsin teacher compensation package in 2009-10 was
$74,844. Employee salary and fringe benefits encompass 75% of
total school district expenditures statewide.
State government employee health insurance premiums cost
Wisconsin taxpayers over $1 billion per year. Employees
contribute approximately 6% of their premium. In other words,
Wisconsin taxpayers pay 94% of every state employee’s health
insurance premium. The Budget Repair Bill will require state
employees pay at least 12.6%.
Currently, state employees, school districts, and municipal
employees participate in the Wisconsin Retirement System (WRS).
Members generally pay little or nothing toward their pensions.
The Budget Repair bill would require everyone participating in
the Wisconsin Retirement System contribute 50% of their annual
pension contribution, or an estimated 5.8% of their 2011 salary.
By implementing employee contributions to their own health and
pension plans, the state will realize an estimated savings of
approximately $30 million between April 1st and June 30th, which
marks the end of the 2010-2011 fiscal year.
If these savings are not implemented, many of our most
vulnerable citizens could be at risk of having their services
eliminated. For instance, choices could be made between either
194,539 children on BadgerCare or 16,284 elderly, blind, or
disabled persons. Or, over 1,500 state employees would be laid
off in the next 3 months.
These cuts become even more dramatic in the next biennial
budget. If the concessions are not realized, approximately 6,000
public employees will lose their family sustaining jobs.
Additionally, Wisconsinites would lose the services those
employees fulfill.
Normally, these changes would be bargained for through contract
negotiations. But, as Governor Walker has stated, to bargain,
you have to have something to offer. Wisconsin is broke.
The Office of Employee Relations cites that over the last 10
years, all 75 state employee contracts have been signed after
the previous contracts had expired. Contracts were signed, on
average, 15 months late even though they all contained
compensation increases.
Therefore, the Budget Repair bill makes changes to state, local
government, and school district labor relations. Various changes
are included to limit collective bargaining for most public
employees to base wages only (i.e. healthcare and pensions will
no longer be part of Wisconsin state employees collective
bargaining process).
Furthermore, total wage increases would not be able to exceed a
cap based on the consumer price index (CPI) unless approved by
referendum. Contracts would be limited to one year and wages
would be frozen until the new contract is settled.
Because of their direct effect on protecting our communities,
local law enforcement and fire employees, as well as state
troopers and inspectors would be exempt from these changes. If
state workers plan to illegally strike, contingency plans are in
place to protect public safety.
Statutory civil service laws in the state are among the
strongest in the nation. To ensure Wisconsin can maintain a
professional and experienced state workforce, those laws will
remain in place. In addition, employee sick leave, vacation, and
retirement benefits will remain unchanged.
Because of these measures in the Budget Repair bill, state
employees will not experience wage cuts, layoffs, and furloughs
in the next biennium.
Wisconsin’s fiscal health is at a critical crossroad. My vote on
the Budget Repair bill will affect every state employee,
including my staff and myself. However, for our state’s future,
these are decisions that must be made.
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