I am a Fiscal Conservative Aspiring to Constitutional Principles of the Republican Party

NEWSLETTER | DECEMBER 2011

-Act 10 is Working in the 99th District-

The school year is in full swing and now is a great time to look at how individual school districts have been able to save taxpayer dollars by using some of the tools that were passed along to them through Act 10. Earlier this year, the WI State Legislature passed ACT 10 (commonly referred to as the Budget Repair Bill) which curtailed many of the collective bargaining privileges granted in statutes to public sector unions that had gone unchecked for over 50 years. The new changes in state law require that government employees pay 5.8% of their wages towards their pension packages and 12.6% of their health insurance premiums. Act 10 also allows employers, such as school districts and municipalities, the freedom to create a reasonable set of work rules and policies. Of course, those rules and policies still have to meet the federal and state civil service guidelines that protect ALL workers from abuse and undue hardships.

Prior to the passage of Act 10, school budgets had been hard to control because salary and benefit packages often reached 80% or more of the annual budget, leaving little room for dollars to reach the kids in our classrooms to improve education. This was occurring at a time when the private sector was trying to cope with job losses, reduced hours, or pay reductions due to the poor economy. In 2010, the U.S. Bureau of Statistics reported that the average worker paid 32% of their Family Health insurance premium and 21% for single coverage. The Segal Company, a benefits consulting firm, looked at ONLY state workers across the country and found that most state workers paid over 20% of their insurance premiums. Clearly our government employees in Wisconsin are not being treated unfairly. By simply asking our public sector union members to understand the plight of the taxpaying private sector and give back a small percentage of their paycheck to pay for part of their own benefit package, union layoffs and program cuts could be avoided.

These new contributions, along with the new ability to competitively “shop” for insurance, has led to significant savings for schools across our state. The Kaukauna School District has reported some of the more striking numbers. They were able to turn a projected $400,000 deficit in their operating budget to a $1.5 million surplus. These savings have allowed for improvements such as lower class sizes and a possible teacher merit pay program.

These dramatic savings can also be seen in our own 99th district: Arrowhead School District will save $1.2 million through staff pension contributions and the ability to switch insurance carriers from WEAC’s WEA Trust to a higher deductible United Health Care plan. Hartford Joint 1 School District saw similar savings with $600,000 saved in insurance changes and $400,000 through employee pension contributions. That’s $1 million that can be used in other areas such as hiring more teachers, lowering classroom sizes, or providing merit-based incentives.

The changes made through Act 10 were necessary and fair and will facilitate a better work environment in our schools for both the students and teachers, while saving our taxpayers money. Our schools now have the necessary tools to reward our many exceptional teachers, as well as the ability to deal with those who are underperforming. Parents and taxpayers should not have to accept mediocrity in our schools, nor should our teachers. Removing control of our classrooms from the Union and giving it back to the teachers and administrators allows teachers to become true professionals and do what they do best: teach our children.
 

Results in Our District:

I have asked every School District Administrator in the 99th district to weigh in on how things are going now that Act 10 is the law of the land. I have specifically asked for information on class size, savings in health care, and changes in the number of teachers. The initial responses that I have received are listed below. I should point out that both Slinger and Erin schools districts have not renewed their contracts since Act 10 has taken effect.

School District of Slinger*:

• Class Sizes:  Remained the same

• Health Care Savings:  N/A

Comments:  We had already been able to change health insurance vendors last October. The tradeoff for that was a settled contract through 2013. Therefore, Act 10 did not directly affect our insurance costs.

• Number of Teaching Positions:  Remained the same

Comments:  Based upon our needs, we are fully staffed.

*Slinger School District has not renewed their contacts since Act 10 has taken effect.

Erin School District*:

• Class Sizes:  Decreasing

Comments:  Due to declining enrollment, our class sizes have been getting smaller (15 – 16). Our school board has always valued smaller class sizes. We have been trying to attract open enrollment students to keep a two track (two classes in the same grade) school, but if projections pan out, it is just a matter of time before we become a one track school and start reducing staffing and increasing class sizes. At that time, we will have an increase in the class size (22-24), but this all depends on resident students and how many open enrollment students we accept. We might even move to a split grade or multi-age approach.

• Health Care Savings:  No savings

Comments:  There is no savings in health care area for 2011-12 or 2012-13 for teachers since we have a master agreement with our teachers who settled for a 2.50% and 2.00% “total package” in December 2010. Total package means any increases in benefits is pulled out first and if any money remains, it is placed on the salary schedule. If increases in benefits exceed the package, the salary scale is decreased. This is not how most districts go about settling with the unions, but our school found it to be the best way to keep our overall cost down.

In September 2011, the board and teachers agreed to look at a different insurance carrier and package. After using a broker and bidding the insurance out, WEA is the only company who could offer us insurance even close to our current rates (due to our small size). In the end, it was determined to stay with WEA. The early retirement reinsurance program (ERRP) which WEA did the leg work for its clients is providing the school district with $859 per month reduced from our overall bill which is a savings to the district.

As for the two administrators, they already paid for part of their health care prior to Act 10. In February 2011 they worked with the school board to increase their amount to 12.8% of the plan. The savings to the district was minimal in the big picture.

• Number of Teaching Positions:  Reduced one teaching position

Comments:  Currently, we reduced one teaching position and reduced the number of hours for our school psychologist. With a combination of losing $543.65 per students on the revenue limit sheet, declining enrollment, and a 12% decrease in state aid, additional staff reductions will be implemented over the next several years. Next year it is likely we could see the loss of two staff with others picking up their responsibility.

*Erin School District has not renewed their contracts since Act 10 has taken effect.

Hartford Joint 1:

• Class Sizes:  Remained the same
• Health Care Savings:  Approx. $1,012,000

Comments:  Saved $600,000 by switching from WEA trust to Universal Health and another $412,000 from employee contributions to health care and pensions.

• Number of Teaching Positions:  Remained the same

Hamilton School District:

• Class Sizes:  Increase in some grade levels at some schools due to enrollment increases.

Comments:  No changes to Board policy regarding class sizes.

• Health Care Savings:  Approx. $379,000
• Number of Teaching Positions:  Reduction of 4.0 FTE

*Hamilton School District is self-insured.

Swallow School District:

• Class Sizes:  None
• Health Care Savings:  $85,000*
• Number of Teaching Positions:  + .37 FTE

Stone Bank School District:

• Class Sizes:  Remained about the same
• Health Care Savings:  Approx. $200,000*

Comments:  Saved $80,000 by moving to a different company with higher deductible and $120,000 with Wisconsin Retirement System contribution

• Number of Teaching Positions:  Remained the same

* Keep in mind that both Swallow and Stone Bank school districts are extremely small districts with a single school. Therefore the savings on health care represents a large percentage to these districts.
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As you can see from the above comments from our school districts, the size of our classrooms has not been negatively affected by Act 10 and the number of teachers has stayed relatively the same. Act 10 has made the state of Wisconsin one of the few states that is NOT facing teacher layoffs.

It should also be noted that many school officials (along with the rest of us) are still worried about the future years as we move ahead. I myself am very concerned about the lack of economic recovery in the country as a whole.

But I do strongly feel that Act 10 has put Wisconsin in a much better financial position than the rest of the country.
 

-Governor Walker Honors State Veterans at Christmas Tree Lighting Ceremony-

On Friday December 2, 2011, I had the privilege of representing the Air Force during the 2011 State Capitol Christmas Tree Lighting Ceremony. The theme for this year's Capitol Christmas tree is "Honoring 163 Years of Wisconsin's Veterans."  Governor Walker dedicated the Christmas tree to Wisconsin members of the military. Veterans and members from all branches of military service attended the event.  During the ceremony, Governor Walker recognized veterans from conflicts ranging from WWII though the global war on terror.  He also thanked school children from across Wisconsin who helped decorate the Christmas tree and made all the ornaments.  Cadets from St. Johns Military Academy performed the flag ceremony and provided the choir and band.  At noon, the Maple School District High School Chamber Choir delighted us with a Christmas carol sing-along.  About 200 people were in attendance.

Governor Walker recognized myself and fellow veterans.	The Christmas Tree in all its glory is actually 36 feet tall!

-Congratulations Sussex!-

Bloomberg Businessweek  has named Sussex the best place to raise kids in Wisconsin in its sixth annual ranking!  Bloomberg  reviewed nearly 4,200 communities in the United States with populations between 1,000 and 50,000, a crime index less than 10 percent, and a median family income within 20 percent of the state median.  Bloomberg based its ranking on several factors, such as outstanding school performance, low crime rates, and affordable cost of living.  Follow the link below to read more about this exciting announcement:

http://sussex.patch.com/articles/sussex-voted-best-place-to-raise-kids-in-wisconsin