Walker's Budget Repair Plan: FACTS

From the Republican Party of Wisconsin:

The FACTS about Governor Walker’s Responsible Budget Repair Plan

The current state of affairs is not a sustainable one for maxed-out taxpayers footing the bill. The average Wisconsin state employee compensation (salary and fringe benefits) in 2010-11 was $76,500. Employee salary and fringe benefits comprises more than 60% of state government general fund operating costs. The average Wisconsin teacher compensation (salary and fringe benefits) in 2009-10 was $74,844. (Source: Department of Public Instruction website)

But the cost to taxpayers keeps growing. Wisconsin taxpayers pay over $1 billion per year for state government employee health insurance; more than double what was paid only 10 years ago. But employees themselves pay only 6% of that amount.

Big savings are needed to fill a big hole this fiscal year. Governor Walker’s Budget Repair Bill contains more than $30 million in savings over a three month period by requiring state employees to contribute to their pension and health care benefits.

Public protections for state employees will remain. Wisconsin’s statutory civil service laws, among the strongest in the nation, will remain in force to ensure Wisconsin can maintain a professional and experienced state workforce. In addition, employee sick leave, vacation, and retirement benefits will remain unchanged.

Fundamental reforms are needed for a sustainable path forward. While pension and health care contributions are a vital part of solving our current deficit problems, the long-term structural problems facing the state and local governments cannot be solved without a fundamental reform of Wisconsin’s labor relations. As Governor Walker said today in a national press conference, in the past public union contracts have taken an average of 15 months to pass. With a $3 billion budget deficit, we don’t have that much time.

Simply requiring pension and health care contributions does nothing to solve crushing problems such as the Department of Corrections out-of-control overtime costs, the Madison bus driver making more than $150,000 per year, or the outstanding first year teacher who was laid off by MPS because she lacked seniority. The time is now to put Wisconsin on a sustainable path, and Governor Walker is the conservative leader to do it.

During tough times, Walker is protecting our most vulnerable citizens. As Department of Health Services Secretary Smith outlined in a memo on February 8, 2011, alternative plans to achieve the type of savings needed to balance the books would be dire.

Other alternatives would require:

- Eliminating services for 194,539 children on Medical Assistance; or
- Eliminating services for 92,599 adults on Medical Assistance; or
- Eliminating services for 16,284 elderly, blind or disabled persons.

Walker is saving thousands of public employee jobs. To achieve similar savings in the state’s general fund over three months would require laying off more than 1,500 state employees. Governor Walker knows there have been enough layoffs across the state already – 250,000 Wisconsin jobs have been lost since the beginning of the recession.

No wage cuts, layoffs, or furloughs. Governor Walker said in an email to state employees that both the Budget Repair Bill and the 2011-13 Biennial Budget will contain no wage cuts, no layoffs, and no furloughs for state employees.

That’s right, no more furloughs. Walker’s sensible solutions effectively mean the 3% of state employee wages lost through Jim Doyle’s unpopular furloughs will offset the increased pension and health care contributions Governor Walker is asking of public employees to help balance the state’s budget.