Trajan
conscientia mille testes
If public employees are prohibited from collective bargaining then presumably pay increases would return to being merit based as opposed to simply giving an entire group more money regardless of whether they've earned.
But the Wisconsin budget shortfall, like that of other states that have gotten into fiscal trouble, is only a short-term problem caused by the recession. While it does mandate some belt-tightening in order to get through this revenue dip, it does not mandate any long-term fixes, especially not one so draconian as the denial of basic labor rights to public employees.
The only sense in which Wisconsin even has a budget problem is short-term, and a short-term cut in pay and benefits had already been agreed to by the public employees' unions. As nothing else was broken, nothing else needed fixing in terms of the state budget.
Yes, actually there is. Unless of course you would like to contend that a free market is not the best way to determine something's true value.
So you contend that when workers bargain collectively, that means the labor market has ceased to be a free market? How ya figger?
2 things
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Posted on March 2, 2011
In Rhode Island, a Massive Public Pension Crisis
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While the biggest national fights in Wisconsin and Ohio continues over new bills to limit or end collective bargaining, in the small New England state of Rhode Island, a battle is brewing over demands to change employee pensions which are largely responsible for a $300 million deficit.
In Rhode Island, as elsewhere, the root cause is plain and simple: Governments gave workers benefits instead of raises without a specific plan to pay for the extra benefits. With the retirement age being raised and benefits being reduced many state workers are concerned that their pension plans are being drastically reduced.
Without dramatic changes to the pension system, Rhode Islanders are facing higher taxes and over cuts in government services. With limited resources public services such schools, buses, parks, libraries and higher education are in jeopardy of losing critical funding.
more at-
In Rhode Island, a Massive Public Pension Crisis | NewsHour Extra: Video ClipBoard | PBS
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the result;
R.I. Gov. Signs Pension Overhaul
Friday, November 18, 2011
NEW YORK Gov. Lincoln Chafee late Friday signed a sweeping public pension overhaul bill that Rhode Islands legislature passed the night before.
After more than five hours of debate, the House of Representatives approved the bill, which Chafee and General Treasurer Gina Raimondo supported, by a 57-15 vote. The Senate approved the House version 32 to 2.
The bill creates a hybrid plan that merges conventional public defined-benefit pension plans with 401(k)-style plans. While some other states have implemented hybrid plans, Rhode Islands would be the first to affect current employees, according to the Pew Center on the States.
It also includes a suspension of cost-of-living adjustment increases for retirees and raises the retirement age for employees not yet eligible for retirement.
Tonights vote marks a turning point, Chafee said after the vote. We are committed to getting our fiscal house in order.
The states pension plan in only 58.7% funded, according to Bloomberg data. On Aug. 1, 19,000-population Central Falls filed for Chapter 9 bankruptcy protection, citing an $80 million unfunded pension liability. Other municipalities and conduit issuers in the Ocean State have sustained bond rating downgrades in the aftermath of the filing.
more at-
R.I. Legislature Sends Pension Overhaul to Gov. - The Bond Buyer Article
now, question for you, how do you suppose they got here?