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8/22/2009
Montgomery: The Consequences of Ignoring Economic Realities
A struggling economy produces many terrible consequences. The loss of a job, smaller paychecks, fewer benefits as well as anxiety over job security put a tremendous strain on a family. Businesses, large and small, must take extraordinary measures just to keep the doors open. Local elected officials are tasked with making tough decisions beyond just prioritizing needs over wants.
Unfortunately, these painful hometown economic realities sometimes take a back seat to special interest politics in Madison. A recent example of this involves a change in the state’s laws governing the process by which local school boards negotiate contracts with school district employees.
State law allows local government employees and school district employees to pursue final and binding arbitration when they are unable to reach a contract settlement. The arbitrator hired by both sides to mediate and resolve the dispute is required by law to consider certain factors when making a final decision. Prior to the enactment of the state’s next two-year budget, arbitrators were required to: a) assign the greatest weight to any spending limit imposed by the state; and b) assign greater weight to local economic conditions. Together, these are often referred to as the “taxpayers ability to pay” factors.
The new state budget negotiated behind closed doors between Governor Doyle and legislative Democrats carved out a unique exception to the state’s mediation-arbitration law for school district employees. Beginning with contracts settled by final and binding arbitration between a school district and its employees after July 1, arbitrators may no longer assign greatest weight to state-imposed spending limits or greater weight to local economic conditions. The practical effect of these changes is that wages and benefits to school district employees will go up and local homeowners will be forced to pick up the tab through higher property taxes.
In good times and bad, ignoring economic reality never represents good public policy. The burden of property taxes falls hardest on middle-class families and seniors who are living on fixed incomes. Sadly, they will be the ones who will be forced to pay for this special interest perk.
This week, State Representative Mark Gottlieb (R-Port Washington) announced that he will introduce legislation to restore the requirement that pay and fringe benefit awards made by arbitrators to school district employees be based on the school district’s available revenue and local economic conditions. I intend to support his efforts. Like him, I believe school district employs should not be immune from the budget problems facing both state government and local property taxpayers.
Phil Montgomery is a Republican and represents the residents of the 4th Assembly District.
COMMENTS
"SOMETIMES" take a back seat!? But what about TABOR? the Republocrats refused to pass that one.
emily matthews (Fri Aug 21 18:18:06 2009)
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