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fox cities news, appleton, wi fox cities news, appleton, wi
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    1/10/2011
    How will Appleton taxpayers pay for labor contracts?

    Appleton mayor Tim Hanna, via a Post-Crescent transcription published Sunday (from a Thursday interview), shared thoughts about upcoming stresses in the state and municipal budgets.
    [In a discussion group for Gov.-elect Walker] We talked about more pressure on local government and declining resources in the face of almost increasing expectations. We spent a lot of time talking about our mediation-arbitration laws. They need to be talked about….

    [Question from the P/C] Will any departments see a pay increase in 2011?

    No. The budget was passed with zero percent. As we negotiate these contracts, the goal is to go in and negotiate so there is zero percent and we don't have to go back and make budget adjustments.

    …. I know in trying to put the next biennial budget together, the shared-revenue program is one of the big five expenditures for the state. I don't think any one of the five is going to be exempt. I fully expect to see some kind of reduction in shared revenue.
    If the 2011 budget was passed with 0% increases for 2011, how will the city fund a 1% increase in personnel costs? That’s the projected increased cost for 2011, given approval of a new contract with Appleton police officers – a contract sure to predict settlements with the rest of Appleton’s 15 bargaining units. In the contract, wages don’t increase for 2011, but health insurance costs do. (It’s possible those health cost increases are in the budget – I didn’t yet drill down.)

    I’m guessing here, but let’s say the city’s personnel budget is about $100,000,000 (the total budget for 2011 is almost $147,000,000). That potentially 1% unbudgeted increase in personnel expenses would be right around $1million..

    And given that Mayor Hanna shares our belief that changes in Wisconsin labor laws most likely will come sooner rather than later, why would he condone a 3-year contract, with wage increases of 8% in 2012 and 2013?

    And given that the mayor sees state shared revenue payments to municipalities shrinking, how does he expect the city will fund a projected 3.35% increase in labor costs in 2013? (That 3.35% projection uses a 4% assumption for increases in health costs – fat chance it will stay that low.)

    Would it be wise to get more accurate health care cost assumptions for 2012 and 2013?
    Would it be wise, before passing a 3-year contract, with shared revenues expected to shrink, to tell taxpayers exactly how the city expects to pay for those increases in the out years?
    Would it be wise to consider that potential state labor law changes may impact future negotiations and then consider a one-year contract, in the best interest of city taxpayers?

    Yes, yes and yes.

    Jo Egelhoff, FoxPolitics.net




    COMMENTS

    Would it be wise? Unless the City of Appleton has a big "reserve" hidden somewhere, of course it is unwise. The only possible answer is that Hanna plans massive layoffs.

    I am not a financial planner. Perhaps the City needs one.

    Jo, if your numbers are correct, the city is being negligent.

    fox cities news, appleton, wi
    David (Mon Jan 10 08:05:57 2011)

    I do not see where anybody has written disagreeing with today's blog.

    Jo, I have high expectations for the State with the new Governor, and the Country with Reid Ribble. On the city level I would hope that our Council and Mayor can see that they are being very risky with our future.

    I read Mayor Hannas interview you mentioned in today's blog. He mentioned "talking" about matters on the State level. I think talk is fine but I call the City Fathers to take action.

    I challenge each member of the council to randomly contact members of their Ward and ask if they should encumber the city with three year contracts? I expect the answer would be 95% NO.

    I challenge the Board of Education to do likewise.

    I challenge Mayor Hanna, and Superintendent Allinger, and all elected officials to be BOLD. Be BOLD and make fiscally sound decisions.


    fox cities news, appleton, wi
    David (Mon Jan 10 09:40:45 2011)

    >>>(That 3.35% projection uses a 4% assumption for increases in health costs – fat chance it will stay that low.)<<<

    Health care costs.....Maybe it would be wise to support single payer so a to reduce those costs. Medicare for all? Go repeal "Obamacare" and enact single payer.

    fox cities news, appleton, wi
    Dean Weichmann (Mon Jan 10 09:57:05 2011)

    It is clear to me from a strategy standpoint that the City (Hanna nad the HR Director, and the Finance Director) have been nicely "Out-Foxed" by the Unions. In all likelihood, the "Med/Arb" law is going to be changed in the next year. Frankly, it has been badly tilted in favor of Public Sector Unions for decades. It is also likely that changes will be coming resulting in 5% contributions by Employees for their Retirement (As now provided by State law, but "Bungled away" at the bargaining table by inept Public Sector Management over the years.) Further, increased payments by Employees for Health care are looming. The result of this round of negotiations is that Appleton will be "Locked-in" for three years to a very expensive labor agreement with ALL its Unions, and Mangement will look VERY foolish! BUT, AS ALWAYS, THE FOLKS WILL FOOT THE BILL! DUMB! GLS
    fox cities news, appleton, wi
    GL Schillng (Mon Jan 10 12:36:03 2011)

    I'm still waiting to hear from the supporters and the Mayor about how we expect to pay for this. So far, I haven't heard anything and no one is standing up to say they'll increase taxes to pay for it. If you support it, tell us how we can afford it. What will be cut?

    The Council vote during Committee of the Whole last Wednesday night was 7-7 before it got referred back to the Finance and Administration Committee.

    This is not the only financial issue we have to consider for the next couple of years. We have a golf course with a large debt and a transit system that will be losing a lot of federal funding. That's not to mention the constant infusion of cash into the our water plant and the potential for huge wastewater mandates from the DNR on phosphorus reductions.

    Come Wednesday afternoon and listen in on the discussion and provide your thoughts. Jo, I hope to see you there.

    fox cities news, appleton, wi
    Chris Croatt (Mon Jan 10 21:19:21 2011)




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