Monday, February 21, 2011

Budget Repair and the rush to settle contracts

There is no question people are in panic mode with all of this debate about the budget repair bill in Wisconsin. It's pretty much a given that it will pass, not a matter of if but when.
In Madison the city council rushed to get labor union contracts settled. In my home town of Waupun there are fourteen teachers considering early retirement and in Dodge County, the board here is looking at getting labor contracts settled soon as well.
http://www.wiscnews.com/bdc/news/local/article_329cea36-3b25-11e0-91b5-001cc4c002e0.html

I don't believe these rushes to settle contracts are such a wise idea. For those of us that were paying attention (and yes I am taking a shot there) this news comes as no surprise. Scott Walker made it pretty clear this is what he planned to do when he ran for Governor of Wisconsin.
What he has also made clear is the budget is going to contain some very deep cuts. When you live in a city that depends heavily on shared revenue, this is rather unsettling. That's why this rush to settle contracts is a foolish idea. I believe people opposed to the Governor's plan are thinking if they can get these contracts settled before the budget repair bill is passed, they somehow beat Governor Walker when in fact, all they are doing is shooting themselves in the foot.
While so many keep insisting that all Governor Walker wants to do is bust the unions, I believe Governor Walker is trying to prevent city, county and school boards from looking at the budget and having a complete "oh crap" moment.
When the budget is revealed it's obvious a lot of cuts are going to have to be made at the local level. If you live in a community where people panicked and settled union contracts in a rush, your "oh crap" moment is going to be a lot bigger because your local officials will see the numbers, and will realize that cutting union benefits was a necessity and they won't be able to do it. So then what? Everyone else will have to pay more.
The union leaders are fully aware of this which is why they are pushing hard to get this done quickly. If contracts are settled before the repair bill is passed, local governments will have their hands tied for the length of those contracts. The budget repair bill will not back date and erase those agreements. And let's face it, the unions aren't going to come back and renegotiate out of the goodness of their hearts.
If you are a resident in a community where there is a push to get these contracts settled, I suggest you call your alderman or county board member, remind them they represent everyone and not just the union employees and tell them to "throttle back, take us out of warp."

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