Budget Sanity and Its Positive Effects
A legislative column by Senator Mary Lazich (R-New Berlin)
This summer is more than a season of warmth and festivals. Across the country, it is a summer of budget problems.
Minnesota elected officials failed to come to a budget agreement prior to a July 1 deadline, and Minnesota state government shut down. Congress and the President wrangle over debt and spending. Fortunately, here in Wisconsin we avoid such problems.
The budget approved by Republicans during June eliminated the state’s $3 billion structural deficit, created a structural surplus, and includes a property tax freeze. The balanced budget is achieved, in part, by applying modest public employee payments to pension benefits and health insurance premiums.
Opponents of the balanced budget use Chicken Little language to spread rumors about nasty side effects, saying the budget will cripple education and harm the middle class.
These are simply scare tactics. Yes, class size in Milwaukee Public Schools (MPS) may increase, and that is largely because the MPS union refused concessions that would have saved hundreds of teachers’ jobs and allowed for smaller class sizes. Contrast MPS with the Kaukauna School District’s announcement to add staff and reduce class sizes at elementary, middle, and high school levels due to changes contained in the budget repair bill and the state budget.
As more school districts begin to manage their budgets by applying principles established in the budget repair bill and the state budget, more districts will enhance education similar to Kaukauna. State Superintendent Tony Evers testified before the Joint Finance Committee that he believes "… in five years … our school systems will be better, more nimble, and more high achieving in five years then they are today."
During the weeks since Kaukauna discovered its improved financial condition, more school districts and local governments reported similar results.
The Appleton School District saved more than $3 million by simply having a competitive bid process for health insurance.
The Marshfield School District loses $2.4 million in state funding; however, budget repair bill cost saving measures allow the Marshfield School District to balance their budget and maintain programs.
The Brown Deer School District reaps the benefit of considering performance pay to reward good teachers.
Manitowoc County tweaked its overtime policies to eliminate overtime payment abuse. The county’s new overtime provisions still exceed requirements of the federal Fair Labor Standards Act; however, they are expected to save the county at least $100,000.
These are a few examples of the effects of the responsible budget approved by Republicans earlier this year.
These examples should not be much of a surprise. While opponents of recent state government action demagogue funding reductions as an attack on education and municipalities, the merit of the attacks is far from noteworthy. The funding reductions are largely, if not entirely, offset by modest public employee health care and pension contributions.
According to a study by Wisconsin’s MacIver Institute, increased employee contributions to health care and pension provide school districts more than $500 per student. The money enhances quality education and allows well-managed districts to thrive, assuring services are not compromised despite less state assistance.
The rhetoric around the budget and its cost-saving measures has been thick. As time goes on, and more stories surface about the positive effects of the cost-saving measures, the "sky is falling" rhetoric will be exposed as unfounded.