Tuesday, February 15, 2011

Wisconsin National Guard Preps For Worker Unrest After Governor Unveils Emergency Budget

Trouble in Badgerland -
Wisconsin Gov. Scott Walker, a Republican, unveiled an emergency budget proposal Friday to deal with the state's growing budget woes. Wisconsin has a $137 million deficit this year, and faces a projected $2.9 billion budget shortfall for 2012 and 2013.

Under Walker's plan, public employees would lose all of their collective bargain rights, except a limited negotiation of wages. State workers would also have to contribute more to their pension and health care benefit plans.

Unions erupted in outrage as they learned about Walker's proposal. The Governor told Milwaukee Public Radio that he has briefed the Wisconsin National Guard to prepare them for any worker unrest today.
The Real Effect
Ah, emotions are running high so people are freaking out. Let's take this piece by piece shall we?
What do we know so far?
  • Taxes in Wisconsin are ASTRONOMICALLY high and under the previous administrations, they kept going up. This is not disputable, as to do so would indicate that you think no level of taxation is too high. Property taxes are atrocious, fuel taxes are abysmal, etc, etc...
  • Services rendered versus prices paid is abysmal. Simply put, we, as taxpayers are not getting what we are paying for.
  • The solution to these issues is NOT more taxation, it is less.
  • THE largest contributor to these costs are public employee costs, specifically pensions.
  • Many of these pension deals are sweetheart kickback deals. Some individuals went to PRISON for these deals.
  • Public sector employees have shown an absolute disdain for private sector's ability to pay. They view the public as a turnip to be squeezed. (Case and point is the Racine Public School District)
  • Cold-hard math dictates that this pace of economic spending CANNOT continue.
It is in this environment that we find ourselves today. The public is DEMANDING less taxation. So where do we find ourselves in light of this article?
  • Walker is dealing with both issues. (Over-taxation and public sector demands)
  • Because some public sector pay is too high, it is going to get cut. (God forbid that the unions should have to pay into their health care or pensions.)
  • No one ever likes getting a pay cut, no matter how much they make. The unions WILL protest and might get violent.
  • Walker appears to be preparing for that eventuality. He has not set up checkpoints, he is not firing on people and hasn't even mobilized the guard. Until he starts abusing the power, I reserve judgment on how he is going to use the guard.
At this point, I do not have an opinion on the union losing its collective bargaining rights. Perhaps I will flesh that out later. Also, it wouldn't hurt to review CAFR records either.

Long and short of the article is that in my opinion, the public unions are screaming foul about a situation which does not rise to the level of protests especially when viewed in light of how the unions have been treating the taxpayers these last 50 years. 

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