Wisconsin

Here is a text of a published letter from one of the WI senators. 

"Dear friends,

I know most of you are aware of what has been transpiring in Madison over the last weeks.

Amidst a looming budget deficit of $3.6 billion, the State of Wisconsin is facing an immediate $137 million deficit in the fiscal year that ends of June 30th. Every day that we don't take action to correct this fiscal crisis, we fall further behind.

Governor Walker introduced a budget repair bill that includes, amongst many other things, asking government workers to pitch in for 5.8% of their pension benefit, and contribute 12.6% of the cost of their health insurance benefits. The bill also includes some changes to collective bargaining procedures for these workers. There are many questions surrounding this bill, and I have attached below some material that may be useful to you.

I would also like to share that I firmly believe in my democrat colleagues' right to disagree with and oppose this bill. What I do not agree with is how they have handled themselves over the past weeks.

Last November, the citizens of Wisconsin elected Governor Walker and new majorities in the State Senate and State Assembly with the expectation that fiscal sanity will be restored in our great state. The various questionable actions to impede passage of this bill - most notably 14 Senators fleeing the state - do nothing but disenfranchise the voters of the last election. When the missing 14 Senate Democrats walked out of the Senate and into Illinois, they walked out on a 160-year old institution and their constituents.

Lastly, while these Senators have been gone, I have received threats of violence. I have been yelled at while entering and exiting the Capitol building. I have personally watched opponents of this bill attempt to intimidate my colleagues into changing their position on this legislation. Please know that no matter how long it takes for the 14 elected officials to come back to Wisconsin, no amount of personal or political threats will keep me from coming to Madison to do the job that you elected me to do. 

Sincerely,

Randy Hopper

Frequently Asked Questions

Q: What will be the required pension contribution for state employees?

A: State, school district, and municipal employees that are members of the Wisconsin Retirement System (WRS) would be required to contribute 50% of their annual pension payment. The payment amount for WRS employees is estimated to be 5.8% of salary in 2011.

Q: What will be the required health insurance contribution for state employees?

A: State employees would be required to pay at least 12.6 percent of the average cost of annual health insurance premiums. Local employers participating in the Public Employers Group Health Insurance Plan would be prohibited from paying more than 88% of the lowest cost plan. Local government employers who use other health insurance plans or are self-insured would be able to set the contribution rate and the subject would be prohibited from the process of collective bargaining.

Q: Will legislators and the Governor be required to contribute the same amount to their pensions and health insurance coverage?

A: All elected officials including legislators and the Governor will be required as of April 1, 2011 to make these contributions for health care and pensions. For elected officials the pension contribution is estimated to be 6.65% of salary in 2011.

Q: Why is the Governor proposing a budget repair bill when the Legislative Fiscal Bureau says that the state will end the biennium with a surplus?

A: The LFB revenue memo from January 31st indicated a general fund surplus of $121.4 million, but also indicated several appropriation shortfalls. In practical terms, this means that the legislature did not appropriate enough money for these purposes in the last biennial budget. Here is a list of our bills:

• Deficit in Medical Assistance Programs to fulfill spending requirements under current law ($153.2 million)

• Deficit in Medical Assistance admin services ($16 million)

• Deficit in Income Maintenance Activities ($5 million)

• Deficit in State Public Defenders Office ($3.5 million)

• Deficit in Department of Corrections ($21.7 million)

• MN Reciprocity Payment ($58.7 million)

This results in a Fiscal Year 2010-11 Net General Fund Deficit of $136.7 million.

In addition, Wisconsin still owes $200 million to the Injured Patients and Families Compensation Fund.

Q: Why won't the Governor negotiate with the unions?

A: We simply cannot afford to wait. Over the last ten years, ALL state employee contracts have been signed late - on average, 15 months late - even thought they ALL contained net compensation increases. Wisconsin faces a current year deficit of $136.7 million and a biennial budget deficit of $3.6 billion. Both must be fixed no later than June 30th.

Q: Aren't the collective bargaining changes in the budget repair bill non-fiscal?

A: All aspects of public employee collective bargaining reform affect the bottom lines of state and local governments. Requiring bargaining over everything from work rules to health care policy details limits the ability of state and local governments to effectively manage their budgets and provide value to the taxpayers.

Public employee collective bargaining excesses have also affected the quality of government services. Under the current system, employees are compensated based primarily on seniority rather than merit, talent and work load. This promotes longevity over innovation and creates a stifling effect on reforming the way government works.

There are countless examples of both of these effects, here are just two:

• In 2009, Madison's highest paid employee was a city bus driver. He earned $159,258, including $109,892 in overtime.

• In 2010, a teacher who had been named an Outstanding First Year Teacher was laid off from Bradley Tech High School in Milwaukee because she lacked seniority. The principal at Bradley Tech was quoted as saying, "Based on the pressures we're under as a low-performing school, I absolutely would have chosen a different nine (for layoffs)."

Q: Will public employees still be allowed to form unions?

A: Yes, public employees will still be allowed to form unions, however, members will not be required to pay dues and the unions must collect dues - not the employer. Also, an annual vote will be required to maintain the certification of the union. In order for the union to remain certified, 51% of the members of the union must vote in favor to certify.

Q: Will any collective bargaining be allowed?

A: Collective bargaining will continue for the base wages for public employees represented by unions.

Q: Will base pay be capped?

A: Base wages cannot increase in excess of the consumer price index (CPI) unless it is approved by a referendum.

Q: Will this bill affect current leave benefits (e.g. vacation, legal holidays, personal holidays, sick leave)?

A: No. Accrual of leave benefits will remain the same.

Q: Does this bill include wage cuts or furlough days?

A: No. There are no wage cuts and no furlough days in the budget repair bill or the 2011-2012 Biennial Budget.

Q: What will happen to items like overtime, premium pay, merit pay performance pay, pay schedules, and automatic pay progressions?

A: These items will be determined by the local employer (school board, local municipality, county board, etc.).

Q: What will happen to workplace rules that are currently bargained for collectively?

A: At the local level these items will be managed and approved by the local employer. For state employees, work place rules would be developed by Office of State Employment Relations and approved by the legislature's Joint Committee on Employment Relations.

Q: What protections will remain for public employees after passage of the Budget Repair Bill?

A: Budget Repair Bill does nothing to alter Wisconsin's civil service system - one of the strongest in the nation. These protections include, but are not limited to:

• Civil service hiring (by merit vs. seniority) remains

• Access to other state positions through transfer, promotion, etc., is still available, although application process may vary

• Just cause requirement for discipline; due process must still be followed

• Still assured a discrimination-free, harassment-free work environment

• Same access to health insurance and other insurance benefits

• Layoff process, if it were to become necessary, is the same

Also, the bill requires that a local government employer either adopt WCSS or establish a grievance system that covers at least all of the following: a) a grievance procedure that addresses employee; b) employee discipline; and c) workplace safety. If a local governmental unit creates a grievance process under the above provisions, the process must contain at least all of the following elements: a) a written document specifying the process that a grievant and an employer must follow; b) a hearing before an impartial hearing officer; and c) an appeal process in which the highest level of appeal is the governing body of the local governmental unit.

Q: Opponents argue that that the bill is being pushed through the legislature with little public input. Is that true?

A: The Joint Committee on Finance held a public hearing which lasted 17 hours - longer than any public hearing in recorded history. Not to mention, the State Assembly debated the bill on the floor for an astounding 60 hours.

There have been a lot of rumors and misinformation regarding this pivotal bill, and I hope that the above information helps to clarify some common misunderstandings.

Earlier this week, Governor Walker introduced his proposed 2011-2013 Biennial Budget. As the budget process continues, I am sure there will be many questions, and I will keep you posted about budget developments as they occur. You can read my initial reaction here."