
Wisconsin, like many states, has a fiscal crisis. But for the past week, many of those drawing Wisconsin government paychecks have not been on the job. The state's Democratic Senators fled the state to avoid voting on a bill to help address the fiscal problems, and many other state workers, including teachers who called in "sick", marched around and inside the state Capitol in Madison throughout much of the work week protesting Governor Scott Walker's bill to help balance the state's budget. On Saturday, supporters of the new Governor who had to work during the week showed up in Madison.
Scott Walker was just elected Governor in November in the wave of Tea Party backed Republican victories that were fueled in large part by budget deficits run up by Democratic leaders in numerous states and the federal government. Some labor backed protest signs carried around the Capitol earlier in the week said that the demonstrations showed "how democracy works". It is true that democracy permits free speech and the right to express political views in such demonstrations. However, decisions regarding who leads government at each level and sets public policy during elected terms of office are made in elections in America. Protesting crowds of demonstrators may be how democracy must be practiced to change political leaders in the Middle East, where free and fair elections have not been permitted for decades, if ever, but not in the US. In America, "elections matter".
Scott Walker was just elected Governor in November in the wave of Tea Party backed Republican victories that were fueled in large part by budget deficits run up by Democratic leaders in numerous states and the federal government. Some labor backed protest signs carried around the Capitol earlier in the week said that the demonstrations showed "how democracy works". It is true that democracy permits free speech and the right to express political views in such demonstrations. However, decisions regarding who leads government at each level and sets public policy during elected terms of office are made in elections in America. Protesting crowds of demonstrators may be how democracy must be practiced to change political leaders in the Middle East, where free and fair elections have not been permitted for decades, if ever, but not in the US. In America, "elections matter".
"We did have an election and Scott Walker won," said Deborah Arndt, 53, of Sheboygan Falls. "I think our governor will stand strong. I have faith in him." At a rally organized by Tea Party Patriots, the movement's largest umbrella group, and Americans for Prosperity, supporters of Walker carried signs with a fresh set of messages: "Your Gravy Train Is Over . . . Welcome to the Recession" and "Sorry, we're late Scott. We work for a living."
"We pay the bills!" tea party favorite Herman Cain yelled to cheers from the pro-Walker crowd. "This is why you elected Scott Walker. and he's doing his job. . . . Wisconsin is broke. My question for the other side is, 'What part of broke don't you understand?'" http://www.aolnews.com/2011/02/19/battle-over-anti-union-bill-draws-protesters-from-both-sides-to/
Wisconsin state workers are protesting a bill that would require them to pay more toward their pension and health insurance benefits and would limit collective bargaining rights for state employee unions. Governor Walker's website provides the details on how much the taxpayers have been paying toward government workers' benefits:
"From 2001 to 2010 taxpayers spent more than $8 billion dollars on state employee health care coverage—over the same period of time state employees contributed about $398 million....
-From 2000 to 2009 taxpayers spent about $12.6 billion on public employee pensions, during the same period public employees contributed $55.4 million....
-When looking at state operations, state employees account for about 60% of taxpayer cost—77% of state operations for the UW are employees, 70% for corrections, 63% for health services...
-Public employees in Wisconsin are vested in the retirement system immediately, while in Illinois it takes 8 years, 10 years in Indiana, 4 years in Iowa, 10 years in Michigan, 3 years in Minnesota, and 5 years in Ohio...." http://www.wisgov.state.wi.us/journal_media_detail.asp?prid=5625&locid=177
While the state unions and Democratic legislators have agreed to state workers paying more toward their benefits, they are resisting any proposal to limit union members' collective bargaining rights. Governor Walker, who previously served for eight years as the Milwaukee County executive, saw attempts to cut employee related costs at the local level often reversed during collective bargaining, which state law protected. As a result, state law limited County executives' ability to control local government spending.
Private sector workers (whose taxes support the state workers' benefits) have been suffering through a recession for over two years and unemployment is still at 9%. In private business, it is well recognized that the largest part of any company's operating expenses are the costs of employee compensation and benefits. That's why the first response in the private sector to reducing costs when the economy turns sour is to reduce the number of employees or cut employee benefits. Over the past two decades, increased global competition has also led many private businesses to eliminate employee pension plans for newly hired workers that used to be a common employee benefit at most companies. Now private sector employees are generally limited to relying on 401k accounts for retirement savings, and those accounts suffered during the recession's stock market downturn that is only now coming back close to 2008 levels.
While private sector employees have been suffering the effects of the recession for over two years, public employees have been largely spared because the Obama Stimulus bill sent enough money to state governments to allow many governors to avoid state worker lay-offs and benefit cuts to the same extent as those in the private sector. Since the Stimulus program has now run its course, the states must now face up to their budget difficulties without the same level of financial help from Washington that many relied over the last two years. Hence, the sign in Madison that says "Your Gravy Train is Over".
I spelled out the disparity in compensation and benefits between private sector and public sector workers in a post last year at http://jaxonnews.blogspot.com/2010/12/mainstream-media-takes-notice-of-public.html. In that post, I quoted comments made by Scott Walker before he was sworn in, as well as comments made by outgoing Minnesota Governor Tim Pawlenty, that noted that public sector employees had become a privileged class whose better pay and benefits are paid for by private sector workers' taxes:
"We can no longer live in a society where the public employees are the haves and the taxpayers who foot the bill are the have-nots," Wisconsin's incoming Republican Gov. Scott Walker declared... as he raised the idea of stripping state workers there of collective bargaining rights. Outgoing Minnesota Gov. Tim Pawlenty, who is mulling a GOP presidential bid, also sounded a class-war note.... on the op-ed page of the Wall Street Journal: "Unionized public employees are making more money, receiving more generous benefits and enjoying greater job security than the working families forced to pay for it with ever-higher taxes, deficits and debt."
The demonstrations in Madison over the past week have dramatized this new type of class struggle between public workers and private sector workers. It might even be possible that union members in the private sector will eventually take a stand against their union brothers with government jobs since the hard working taxpayers in the private sector are paying for the government employees' "gravy train".