Scott Walker's Pension Reform Plan

Scott Walker is the candidate of hope and change -- not fake hope and change, like Obama promised and failed to deliver. Walker will usher in an era of real change and progress.

Tom Barrett is the status quo candidate. In effect, his election would mean a third term for Jim Doyle.

We can't afford more of the same.

Walker's pension reform plan is another example of why Wisconsin desperately needs him to be the state's next governor.

Scott Walker: “I’ll Pay My Share, Because Everyone Should Pay Their Own Way Including Me”

Introduces Pension Reform Plan to Save Nearly $180 Million a Year

Wauwatosa – Scott Walker, Milwaukee County executive and candidate for governor, today announced that if elected governor, he and his wife Tonette will voluntarily pay the full employee portion for the governor’s pension. Currently, Wisconsin taxpayers foot the bill for both the employer and employee contributions for the pension benefit received by state employees and elected officials. Walker will voluntarily pay the full employee contribution for his own pension immediately and propose a plan requiring all employees of the state to contribute their portion as well, saving nearly $180 million a year for the taxpayers.

As Milwaukee County executive, Scott and his wife Tonette have given $370,000 of his salary back to the taxpayers over the past eight years.

“As governor, I’ll pay my share toward my retirement because everyone should pay their own way, including me,” said Walker. “Taxpayers are currently footing the full bill for state employee pensions, and my plan asks each government employee and our elected officials to contribute their fair share, saving nearly $180 million a year. The only way we’re going to get spending under control is to fundamentally change the way we govern, enacting long term solutions that reduce the cost of government.”

Over the next several months, Walker will continue to unveil “Brown Bag Ideas” and other policy proposals that follow his “Brown Bag Guide to Government”:

---Don’t spend more than you have

---Smaller government is better government

---People create jobs, not government

Scott Walker was elected Milwaukee County executive on a wave of reform, after a pension scandal revealed government workers were walking away with millions in taxpayer money. Since then he has introduced eight consecutive budgets without a tax levy increase from the previous year, cut the debt by 10%, reduced the workforce by 20% and had an $8.9 million surplus in his most recent budget.
As Milwaukee County executive, Scott Walker has given back part of his salary to the taxpayers each year, voluntarily reduced his own pension benefit, and in his most recent budget successfully worked on a bipartisan proposal that asked county employees to contribute to their government financed healthcare plans, saving millions for the taxpayers.

Scott and his wife Tonette live in Wauwatosa with their two sons, Matt and Alex.

FACTS:

· Unlike those in the private sector, the vast majority of state employees contribute nothing towards their retirement.

· State employees receive a pension benefit each year paid for by taxpayers equal to 11% of their salary.

· Currently, taxpayers typically pay for the 5% employee portion of their state employee retirement benefits AND the 6% employer portion.

· All fringe-benefit costs for state workers average 43% of their salaries.

· Out of control spending and a $2.4 billion budget hole will require bold, aggressive steps to balance the budget without raising taxes. One time cuts are not enough.

· Any budget plan that does not address reasonable changes to employee compensation, benefits and pension is at best, tinkering around the edges of true reform.

· A study from February by the Wisconsin Policy Research Institute found that the state’s contribution its employee pensions is between 10.55% and 13.3% of its payroll – significantly higher than the private sector average of 5.3%.

· According to 2008 census data, the average pay for public employees in Wisconsin is $49,760 per year, compared to the median salary for all workers of $31,578.

· Walker’s plan will save taxpayers nearly $180 million per year and $1.8 billion over the next ten years based on an analysis by the Legislative Fiscal Bureau.

· A fundamental part of Scott’s plan to bring 250,000 jobs to Wisconsin is to lower the tax burden on all families, and the only way to get there is through significant reforms.