What to make of Wisconsin Governor Scott Walker's "budget repair bill"

By now I'm sure you've heard about the proposed "budget repair bill" proposed by newly-elected Wisconsin Governor Scott Walker. With Republicans holding large majorities in Wisconsin's state senate and assembly, the legislation will likely pass once the 14 runaway senate Democrats return from their holdout in Illinois.

Thousands of people across the state of Wisconsin have turned out in protest. So many teachers have left their classrooms over the last 2 days to protest that school districts across the state - not just in the Madison area - have had to close. There were reports yesterday of senate offices being put on lockdown by capitol police as angry protesters marched through the halls yelling and banging on office windows.

In case you're still confused and wondering what the big hairy deal is, here's a list of the most hotly debated provisions in the bill:

Pension Contributions
Current: State, school, and municipal employees in the Wisconsin Retirement System pay little or nothing towards their pensions.
Proposal: WRS employees would contribute 50% of their annual pension payments.

Health Insurance Contributions
Current: State employees pay 6% of their health insurance premiums.
Proposal: State employees pay 12.6% of their health insurance premiums.

Collective Bargaining
Proposal: Collective bargaining for most public employees would be limited to wages. This includes employees from local teachers to University of Wisconsin faculty and academic staff. Wage increases could not exceed a cap based on the consumer price index unless approved by a referendum. Contracts would have a one-year limit and until a new contract is settled, wages would remain frozen. Additionally, collective bargaining units would have to take annual votes to keep their certification as a union. Employers would not be permitted to collect union dues out of employees' paychecks and members of collective bargaining units would not be required to pay union dues. Employees working in law enforcement, fire departments, and inspectors would be exempt from these changes.

Again, this is just a summary of the most controversial portions of the new proposal. There are other changes, but they aren't nearly as earth-shaking. Most contentious is the section on collective bargaining. (For those not familiar with the term, "collective bargaining" is the process of negotiations between employers and trade unions in an attempt to reach agreement on wages, working conditions, etc.) Additionally, Walker has promised that in exchange for these concessions there will be no layoffs or even furloughs. He has said that 6,000 workers will need to be laid off if the legislation does not pass.

I considered not posting on this subject at all. There's so much emotion over it on both sides. But it is one of the nation's leading stories and it's so close to home. As I was deciding that I probably would write a post about it, I received this note from a friend:

With all of the hype going on tonight (esp. on FB) over the Walker bill, the first thing I did was go to your blog--was sure you'd have a post with educated food for thought...I've been thinking tonight "Where is Joey White when we need him?!"

I was flattered to say the least. There's nothing more validating for a blogger than to have a comment like that come through. Sometimes I wonder if it's worth my time to say anything on here. Stuff like that keeps me going.

I have friends from both sides of this debate, which is part of why I thought of staying out of it. I'm not interested in a comment war, though my readers usually do a great job of remaining civil. So at the risk of blowing oxygen on the fire, here are my thoughts on this whole mess.

First, nobody wins. Whether or not you agree with collective bargaining, these teachers and other public employees were hired with collective bargaining in place. I know that any time negative (or even seemingly neutral) changes come to my work situation, whether it's changes in pay or benefits or job description, it can be stressful and frustrating. Those supporting the legislation need to recognize that this bill will require some significant financial changes for a number of families. That's meaningful and needs to be acknowledged.

Second, Republicans campaigned on this kind of fiscal belt-tightening. Wisconsin was run over by the Tea Party Express in the last election. The governor in office didn't hold back on the campaign trail and he's only enacting what he's already talked about. I think it's just a shock to people in a state that's been historically liberal that he's actually carrying through with this proposal.

Third, Wisconsin is facing major budget deficits. They're looking at a $137 million budget shortfall through the current fiscal year, which ends June 30. They face a shortfall of over $3 billion for the subsequent budget. On top of this, tax revenues have been in decline. Cuts have to be made somewhere. The private sector has been severely affected by the economic downturn and it only makes sense that public employees would be too.

Fourth, unions are antiquated. This is certainly a matter of opinion. Again, I want to be respectful of people who were hired into a situation in which they had unions and are now facing the prospect of drastic adjustments. But I see no reason unions should persist. I had a summer job where I was part of the SEIU and the pay left much to be desired for most of the employees. I dropped my education major in college as I realized that I didn't want someone else determining my salary and other working conditions for me, especially with a salary that, while comfortable, certainly wasn't anywhere near luxurious by any stretch of the imagination. I find it highly ironic that teachers are protesting about how low their pay is already. If that's the case, doesn't that just prove how ineffective the collective bargaining has been? So I'm not a personal fan of unions, which certainly clouds my perspective. But I've heard people argue that teachers and other employees need a chance to weigh in on this since it impacts them so much. I agree with them, but to be honest, they'd have a much more direct say in matters if they had more personal control over their own situation. I'm going to react much differently to a pay cut if my boss meets with me one-on-one and explains the company's situation rather than finding out through a company memo from a CEO I've never met. I could go on, but I don't want to turn this into an argument of "are unions good or bad?" My take is they're a thing of the past, so that impacts the way I view the situation.

Fifth, this whole mess is indicative of the problem with state and federal funding of education. Two of the biggest education debates I've heard over the last decade have been No Child Left Behind - a federal mandate - and education funding from the state level. When local school districts go through budget crises like what Lakeville, MN, is going through, people tend to address the issues with both sides at the table and much less loaded rhetoric. Oh, things can get testy for sure, but when you're at a table with your friends and neighbors, it's easier to either fork over more money for the need in your backyard or cut back because you know your neighbor just can't afford it (and neither can you). You can do a better job of making those determinations at the local level. When these discussions are happening in a capitol building hours away the nature of the discussion changes. Our education system - funding, structure, organization, etc. - is a mess and needs to be fixed. This whole debacle in Wisconsin is just more evidence of that.

Sixth, I find it to be a bit dishonest that law enforcement and fire departments were exempted from this legislation. If collective bargaining is a bad deal for Wisconsin with those who teach us, why not remove it with those who protect us too? I'm not sure why that's such an untouchable group. I have a hunch that politics are involved and if that's the case, it's really sad. I think it sends a mixed message, and one that educators and other state employees have a right to be upset with.

Of course, there's more at stake than education. As noted, this impacts most public employees in Wisconsin. But the focus has been on teachers because they've been walking off the job, which is leaving school districts with no other choice than to cancel classes. This has been forcing parents to take time off from their jobs to watch their kids. I think it's wrong for the teachers to be walking off their jobs, but I'm also sensitive to the passion they have on this issue. I know what it's like to be so passionate about something that you feel you have to do whatever it takes to try to make an impact. Add to that the pressure these people have from their coworkers and the energy that is present as everyone rallies around their cause and I can understand why they're making the decision to walk off the job. I don't like it and I don't agree with it, but I'm sympathetic to it.

So that's my take. Frankly, I think this will make reelection difficult for a number of these Republican politicians. The fact that it's being done so early in the legislative session bodes well for them, but I think there could be repercussions if the changes bear widespread angst in a historically liberal state. That remains to be seen.

Regardless, I'm a fan of Governor Scott Walker for governing the way he said he would. Like it or not, you can't say this comes as a surprise.