Public Sector "union dues" are legalized money laundering to favored constituencies. Good for Walker.

The federal gov't has the same problem with overly-generous military welfare programs that the states have with police/fire. He should put some money in his budget to educate the public on their benefits, and let the public make its own decisions.

Did you know that the public sector employees are compensated (all salary, benefits, pensions, etc.) at an average rate at 8% below the private sector for comparable jobs?
Did you know that they pay the same tax rates on their earnings as any other citizen?
Did you realize that the "multiplier effect" of reducing their wages will have over a 1 billion dollar negative effect on the state of Wisconsin?

The only reason the benefits are good is because the pay is so awful. It's the only way to keep employees in their positions. You have to remember these are the people that make your city work, without them you have no schools, no hospitals. Instead you have to take care of your own children and fix their cuts and bruises. Good Luck, you're going to need it.

Joel,
While I agree with your analysis of state and local employee compensation compared to private employee compensation, although I have seen no data on Wisconsin in particular, the whole multiplier effect is hogwash. I'd especially like to know where you came up with the 1B number. It assumes money not spent on state employees just disappears. It doesn't, it stays in the pockets of taxpayers and will be spent and invested. The argument is whether such monies would be better utilized in the private sector or the public.

My thoughts on public sector employees has always been: It is not about wages, it is not even about benefits, it is about the scope and breadth of governmental intrustion into the private sphere. Regulations are the real cost to the economy. If the states were to cut back on their foolish intrustions into the private sphere we could slash state payrolls without touching salaries or benefits. We need a smaller, more nimble,less intrusive government. Pay is not the real issue.

Excellent post Tom.

Regulatory compliance is a roughly 10-25% cost to all business.

And your response to the multiplier point by Joel is a good one.

Joel, if any Wisconsin state worker believes that they are underpaid by 8%, nobody, and I mean nobody is stopping them from leaving the public teat and getting a private sector job.

Also FWiW, my sister lives up in Madison. The Unions are giving teachers and other employees time off to go protest the Governor. Students at UW and elsewhere are being encourged to protest.

The Governor should put this video up on the WI Governor's website, courtesy of Ronaldus Magnus:
External Link 

When these changes are enacted, how many of the public employees complaining about the allegedly draconian cuts will vote with their feet and find a job in the private sector?

My guess is approximately...zero.

A study by University of Wisconsin researchers show that public employees, adjusted for age and education earn less than their private sector counterpoints, even when benefits are included.

In California, state employees have always contributed to their pension system, about five percent of their salaries. Last year's budget increased that to 8-10 percent.

They have always paid a substantial portion of their health care benefit costs.

Once they retire, their pensions are modest, averaging $25,000 per year.

That said, they are compelled to pay union dues. If they don't join the union, they must pay 'fair share' dues which are about $1.00 a month less than full membership. Meaning that the union says it only worth a dollar a month.

The vast amount of money they raise goes exclusively to liberal Democrats, not surprisingly.

And it's very difficult to decertify the union. Even if the vote to decertify is a majority of votes received, the unions have rigged the vote by requiring a majority of ALL member who were able to vote.

It's as if a president of the US couldn't be elected unless he got more than 50% of all potential voters, not just those who voted.

We tried three times, and never could get rid of the union (SEIU).

Like most media, and even most "Pols", you leave out a very important piece of the pie!!

These benefits were used, by the State, not the employees or unions, as a TRADE, over several biennial budgets, to, the state said, replace wage increases that were kept far below inflation, market, or even then current private sector raises. These were NEVER made up. So most employees, especially at professional levels (Accountants, Auditors, Revenue and Bank Auditors, Fiscal Supervisors, etc. - All requiring college degrees.), are far below market private sector wages!!

The State's promise was that they would cover retirement contributions, and "negotiate" health care contracts, to keep our contributions low, until they are "ABLE" to bring us up to market level.

THAT is NOT in this bill!

Also, a huge percentage of positions that are "represented" were made so by the State, in cooperation with the Unions. More and More over the years. They don't ask, you just are a "represented" employee when you are hired, transfer, or even converted from a non-represented position!! AND, most who join do so only because they have to pay dues either way.

Using Myself as an example: Accounting Bachelor Degree; 28 years of Accounting experience, 25 with the State. Worked my way up to Senior Accountant Level. Few if any promotion opportunities after that level unless you quit being an accountant and do something else. After 25 years I made $65,600 Salary + $23,700 in Benefit contributions, per year. ($16,300 of that Health Insurance, which the Democrats decided years ago should be through employers and not purchased privately; and, $7,300 Pension contribution.) Combined that is $89,300. (Cut to $87,300 (<3%>) the last two years; and, with this budget bill will be 3% less than that off take home pay. This will never be made up because this bill also drops a WALL down capping any and all future increases to inflation level or LESS!!!

Now I challenge you to find private sector employed, Senior Level Accountants with 25 years experience, in areas of the country comparable to Wisconsin's Cost of Living, that make less than that!! Or even close to that low!! I also point out that the value of being a CPA in Wisconsin State Government vs. Non-CPA Accountant = $0.50 per hour. That's all!!

Ron A., Sun Prairie, WI