Wisconsin's Act 10

So, what's the ruckus all about?

In case you don’t live in Wisconsin, allow me to recap 2011 for you: Newly-elected conservative governor Scott Walker took office in January… and all @#%$ broke loose.

In 2010, Democrats controlled the governor’s mansion, and both chambers of our state legislature. They left us with a $3.2 billion shortfall for our two-year budget.

Then, as our state constitution dictates, we held our elections in November, and the people of Wisconsin spoke: We voted out the Dems. There is now a new Republican governor, as well as a Republican majority in both chambers of the state legislature. Whatever your thoughts about this election cycle, our democracy was working: elections were held, votes were cast, new representatives were seated.

To address our budgetary shortfall (in a recessed economy, mind you) our government leaders were faced with few options: 1) go into debt, 2) lay off lots of public employees, 3) raise taxes, or 4) pass a sensible budget repair bill, like the one Walker proposed. In-state, that bill is referred to as Act 10.

Act 10 passed. The budget was balanced. We did not go into debt. We did not lay off lots of teachers. We did not raise taxes. And, that was, apparently, when the sky began to fall for the Democrats.

Protesters flooded into Madison. Many of them were even Wisconsin residents. We (I live in Madison) (oh, and I am a state employee) have been treated to months of marches, chants, squatters, occupations (our protesters were “occupying” our capitol before “occupying” was cool), bull-horns, signage (oh, the glorious, genius, vulgar signage), zombie marches (relevance?), men in pink dresses, our best and brightest locking their heads to hand rails, etc, etc.

The one thread through it all has been, "Walker is evil, and he must go." The flame of rage has been fanned and fed steadily through the year. Protest singers still descend upon the Capitol every week (day?), their aggrieved intonations echoing through the marbled halls. Political buttons abound. One in three conversations on my bus seems to revolve around evil-Walker.

But… what’s it all about? What is it that has led the Left to such ballyhooing?

Allow me to recap the offending legislation. This Budget Repair Bill, Act 10, introduced four significant changes to the pay and compensation landscape of the public-sector employees. As a state employee myself, I thought you’d like to see a first-hand account of the real effects of this bill:

1) Act 10 stripped public-sector unions of their ability to collectively bargain on issues of benefits and pension.

Admittedly, I am not part of a union. So, I have no personal anecdote here. I only offer you a story related in an earlier blog. From a write-up in the Milwaukee Journal Sentinel, we find that, under the current Wisconsin public-sector contracts, it is common to find 56 year old employees retiring from public employment, making $50,000-plus a year. Read that sentence again: healthy, able-bodied employees, only 56 years old(!), RETIRING, earning $50K!!! That is a LAVISH, LAVISH, LAVISH retirement scheme… one that will NEVER be found in the private-sector, because it is so unaffordable. And, this golden-retirement is being funded by tax revenues, while our state faces $3.2 billion budgetary shortfall. That ALONE is sufficient reason to reign in public-sector unions. Multiply that out by a few thousand employees, eh.

2) Act 10 required public-sector employees to contribute to their own pensions.

Prior to Act 10, public-sector employees earned salaryX, and the state chipped in an additional 10% into their pensions. So, employees were really earning salaryX + 10%. That is important to remember when public employees say things like, “I could make more money in the private sector.” Really? I was paying nothing into my own pension; now, I am paying $256/mo, while the state continues to pay $309. Of course, this doesn’t address the significant issue that this pension is a “guaranteed benefit” pension, instead of the more-affordable alternative… a “guaranteed contribution” pension. I’m not sure just yet how to quantify the value of that benefit. But, it is significant, and it costs the tax-payers dearly. (If you don't understand the difference, let me know. I'd be glad to explain.)

3) Act 10 required public-sector employees to pay more for their health insurance.

For a very good family health insurance plan, I was paying $85/mo. Can you find that anywhere in the private sector? I now pay $208/mo, while my employer -- the state of Wisconsin -- pays the remaining $1,282/mo. A friend of mine runs a local business with a hundred-plus employees. He noted two points: first, I am still paying less than half of the percentage that his employees have to pay; second, my overall premium costs is greater than their overall premium costs. That means, I am getting a better insurance package than the private-sector, and paying less than half the cost. Again, this is good to know when the public employees start crying about their employment woes under Act 10.

4) Act 10 stripped unions of their power to forcibly extract union dues from its employees.

Before Act 10, if you took certain jobs with the state, you were REQUIRED to pay union dues. Regardless of your opinion of the union… regardless of your political leanings… regardless of your financial situation… you were REQUIRED (by the unholy alliance between the public-sector unions and their well-heeled political lackeys in the capitol) to see your paycheck drained every month to the tune of $30 to $40. That money went towards paying salaries of union officers, and for massive contributions into the campaign coffers of Liberal politicians. Now, under Act 10, those dues are no longer mandatory. All public employees have a choice whether to join the union or not. SIDENOTE 1: I think this is the most offensive piece of Act 10, in the eyes of the protesters. SIDENOTE 2: I thought “choice” was important to those on the Left.

That’s it, folks.

That is what the state-wide, months-long, nationally-reported furor is all about: controversially reduced collective-bargaining, reasonably increased pension contributions, reasonably increased health care contributions, and a moral correction of how union dues are collected. That's why they march, and scream, and demagogue, and cry, and swear, and demonize. That's why labor unions across the fruited plain have galvanized. That's why state senators abandoned their posts, and the Left has initiated efforts to recall governor walker as soon as the law allows.

When you remember that these measures were taken in the shadow of a $3.2 billion budgetary shortfall (biennial), I ask you this: As a tax-paying, self-reliant, red-blooded American, does this really seem to merit the apoplectic hysterics from the Left?

I think not.

On, Wisconsin! On, Scott Walker!