Walkers's Wisconsin reforms worked
Christian Schneider:
The unions know their scam has been shattered and they cannot afford to let it go without a fight, but they are wasting their money on this fight and they will not have the dues collection to make it up.
...What had the unions most up in arms, however, was a reform that ended mandatory dues for members. Wisconsin unions were collecting up to $1,100 per member per year in these obligatory payments, which they then spent on getting sympathetic politicians elected. In the last two elections, for instance, the state’s largest teachers’ union spent $3.6 million supporting candidates. Walker’s reform meant that government workers could now opt out of paying these dues—savings that could help offset those workers’ newly increased health and pension payments, the governor said. The unions knew that, given the option, many of their members would indeed choose not to write a check—and that this would strangle union election spending.
The unions’ battle against Walker’s reforms has rested on the argument that the changes would damage public services beyond repair. The truth, however, is that the reforms not only are saving money already; they’re doing so with little disruption to services. In early August, noticing the trend, the Milwaukee Journal-Sentinel reported that Milwaukee would save more in health-care and pension costs than it would lose in state aid, leaving the city $11 million ahead in 2012—despite Mayor Tom Barrett’s prediction in March that Walker’s budget “makes our structural deficit explode.”
The collective-bargaining component of Walker’s plan has yielded especially large financial dividends for school districts. Before the reform, many districts’ annual union contracts required them to buy health insurance from WEA Trust, a nonprofit affiliated with the state’s largest teachers’ union. Once the reform limited collective bargaining to wage negotiations, districts could eliminate that requirement from their contracts and start bidding for health care on the open market. When the Appleton School District put its health-insurance contract up for bid, for instance, WEA Trust suddenly lowered its rates and promised to match any competitor’s price. Appleton will save $3 million during the current school year.
Appleton isn’t alone. According to a report by the MacIver Institute, as of September 1, “at least 25 school districts in the Badger State had reported switching health care providers/plans or opening insurance bidding to outside companies.” The institute calculates that these steps will save the districts $211.45 per student. If the state’s other 250 districts currently served by WEA Trust follow suit, the savings statewide could reach hundreds of millions of dollars....The genius of Walker's reform is in breaking the corrupt bargain between the unions and the Democrats. It broke the cycle of the government being forced to finance Democrat elections through the dues withholding process. They were in effect contributing to the election of their own bosses, something that would never be permitted in a private company. It created a conflict of interest with no one in the bargaining process looking out for the tax payers. The citizens of Wisconsin would be wise to keep Walker in office.
The unions know their scam has been shattered and they cannot afford to let it go without a fight, but they are wasting their money on this fight and they will not have the dues collection to make it up.
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