When you add in all of the other concessions MilwaukeeCounty Executive Scott Walker wants workers to make in his proposed 2010budget.
Walker has presented theproposed concessions as a way to save Milwaukee Countyfrom insolvency.
“With so many private sector workers seeing theirwages and benefits frozen or cut to preserve jobs, it is hard not to expect thesame from those in government,” Walker said when he unveiled his new budget.
But there’s more to the story.
According to the County Board Research Division’sanalysis of Walker’s proposed budget, theaverage county worker could see up to a 15% decrease in his or her paychecknext yearabout $8,400if all of Walker’sproposed wage and benefit concessions are granted.
Here’s how it works. The average county worker earns$51,230. Decrease that by 3% ($1,537), as well as pay lost to 12 furlough days($2,294) or 21 weeks of reduced hours ($2,509). Then subtract pensioncontributions, which Walkerwants workers to make. At 5% of wages, that would be in the range of $2,370.
Walker also wants countyemployees to contribute 15% of the county’s health care premiumsabout $592 to$1,992 per year.
So a worker who made $51,230 in 2009 could make$42,823 in 2010 for doing the same job.
And that assumes the worker will have a job in 2010. Walker has proposedlaying off 393 employees, about 7% of the county’s workforce.
All told, the concessions and layoffs would total $41million, resulting in net savings of $32 million for the county next year.
“Highly Unrealistic”
But the 3% decrease that’s really a 15% decrease isn’tthe only bit of magic in Walker’s2010 budget.
The county executive’s proposed budget is built aroundthe $32 million in savings, and in doing so disregards a temporary voluntaryagreement for 2009-2010 with AFSCME DC-48, which represents about 63% of thecounty’s workers. This proposed agreement keeps wages flat in exchange for a nolayoff or privatization of employees provision. That would save the county $1.1million over its current contract with the union. The county has laboragreements with other unions through 2011.
Patty Yunk, director of public policy for AFSCME,said that Walker’sproposals were never brought forward by his labor negotiator during the 18months of contract talks. That subverts the collective bargaining process.
“Not once has he brought this to the table,” Yunksaid.
Yet Walker’sbudget depends on the $32 million savings. Now the county board is poised tovote on whether to accept the tentative agreement, which was created in goodfaith, or not. If a veto-proof majority approves it, then Walker’s budget blows up. If they don't approveit, the existing contract stays in effect while the two sides go back to thetable.
“You can’t just summarily put these things intoplay,” Yunk said.
The county board’s analysis stated that it wouldn'tbe easy.
“It should be emphasized that budgeting the savingsfrom these proposed reductions effective January 1, 2010, runs counter toapproved and pending labor agreements, and therefore could be termed highlyunrealistic, likely requiring significant fiscal corrections in 2010 to theextent that they are not achieved,” the board’s budget analysis concludes.
Why would Walkerbuild a “highly unrealistic” budget?
The board’s analysis puts it this way: “The 2010Recommended Budget clearly was developed to force employee unions intoconcession bargaining on wages and benefits.”
A new Public Policy Forum study on the county’s 2010budget commended Walker for addressing laborcosts, but it questioned whether Walker’sconcessions were achievable “and whether, therefore, the 2010 budget should bebuilt around them.”
The study offered some alternatives, including raisingthe property tax, since the county is about $73 million below the state-imposedcap for 2010. Replacing the entire $32 million of wage and benefit savingswould increase property taxes about 12.5%.
The sales tax increase is another option, but it wouldhave to be approved by the state Legislature and Gov. Jim Doyle. County votersapproved a 1-cent increase to cover parks, transit, cultural assets andproperty tax relief, while the governor supports a half-cent increase fortransit only, which would generate $65 million. Other options include cuttingor reducing non-mandated services, including programs in the Parks Departmentand Sheriff’s Office, the Forum noted.
