Wisconsin has robust recovery after repeal of collective bargaining

Gary Wickert:

Over the past six months, Wisconsin has been nothing short of a miracle. Newly elected Governor Scott Walker and the Republicans in the majority in Madison got just about everything they wanted during the past legislative session, and a state facing a projected $3 billion budget shortfall with no end in sight now has a projected $300 million budget surplus. The amazing successes in Wisconsin have emboldened the legislatures and political leaders of other states, who have seen the wonders resulting from a little political backbone and fiscal common sense.

After being held hostage by 14 AWOL Democrat senators, Walker succeeded in passing his budget repair bill, “Act 10,” which instantly fixed the $137 million deficit by requiring public employees to contribute just a little bit toward their pensions and health care, and by limiting their ability to collectively bargain. Wisconsin also ended the ludicrous automatic pay and benefit increases for public employee unions each budget year — closing a cash sinkhole which is eating states like California and Illinois alive. Last month the Wisconsin legislature passed its biennial budget, which Governor Walker promptly signed in a no-frills ceremony.

The repeal of much of Wisconsin’s collective bargaining law has already improved the quality and lowered the cost of Wisconsin government exponentially. There are approximately 275,000 government employees in the state of Wisconsin. About 72,000 such employees work for the state, 38,000 for cities and villages, 48,000 for counties, 10,500 (full time equivalent) for technical colleges, and 105,229 for schools.

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It has been well-reported that under collective bargaining, districts have been stuck with the teacher union health insurance company — like the Wisconsin Education Association Council (WEAC) in Wisconsin — which can cost $3,000-plus per teacher more over a plan that is virtually identical to that which another company is willing to provide. In Wisconsin, WEAC had grossly abused that privilege for decades, resulting in the unnecessary siphoning of millions of dollars from Wisconsin public schools. Taxpayers were the big losers.

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The cost savings to Wisconsin school districts are already producing miraculous stories of fiscal recovery and educational improvement. In New Berlin, the school district went from a $3 million deficit to balancing its budget, and actually lowered school property tax by one percent. New Berlin’s director of financial services, Roger Dickson, says that the changes to collective bargaining gave schools the “tools” to plug most of the $3 million hole.

In Kaukauna, Act 10 has allowed the school district to hire additional teachers, and to reduce projected class sizes: 26 students to 23 students at the elementary level, 28 students to 26 students at the intermediate/middle level, and 31 students to 25 students at the high school level. In addition, time is now available for staff to identify and support students needing individual assistance through individual and small group exercises. Act 10 has allowed the district’s projected operating budget to improve from a $400,000 deficit to approximately $1,500,000 in the black. Earmarked in the operating budget are $300,000 related to merit pay, a program being explored for all staff for the 2011-2012 school year. To top it off, Kaukauna is planning to hire more teachers.

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There is more.

Unions have been acting as trolls on taxpayers for too long in many states. Freeing people to innovate and compete will create opportunities for the taxpayer and for the workers.