mykeystrokes.com

"Do or Do not. There is no try."

Sorry Gov Walker, Wisconsin Pension System Is Nation’s Most Solvent

Wisconsin’s budget may be in a hole, but the state’s pension system is among the healthiest in the nation.

In fact, the Badger State was one of just two states to fully fund its public employee pension in 2009, according to a report released Tuesday by the Pew Center on the States. New York was the other.

Although nationally there was at least a $1.26 trillion gap in 2009 between what states have promised in public employee retirement benefits and what they have set aside, Wisconsin stands out as a leader in managing its liabilities for both pension and health benefits over the long term, the Pew report concluded. The shortfall is 26 percent greater than it was in 2008.

Pew researchers attribute the gap to unwise decisions by retirement benefits fund officials and the Great Recession that whacked pension fund investments. In all, 31 states were below the recommended 80 percent funding level for their pension plans in 2009, compared with 22 states that fell short of that threshold the previous year.

“Over the last decade, it was all too common for state leaders to skip or shortchange their annual retirement contributions and increase retiree benefits without checking the price tag or figuring out how to pay the larger, long-term bill,” said Susan Urahn, managing director for the Pew Center on the States. “Now, policymakers in many states are taking a long overdue look at how they have managed, or failed to manage, the considerable costs for public employees’ retirement benefits. Even in states like New York and Wisconsin, where pension systems are well-funded, governors have sought policy changes aimed at reducing their pension liabilities.”

The report was released at a time when Wisconsin sits at the epicenter of state budget battles across the country as governors are focusing on public employee benefits to cut costs and balance budgets. Wisconsin Gov. Scott Walker ignited a firestorm with his “budget repair” proposal that strips public employees of many of their collective bargaining rights and requires them to contribute more of their income toward their retirement benefits. Several states followed with similar proposals, fueling a debate over the role of pension systems in the financial crisis in the states.

At a Capitol Hill forum Tuesday sponsored by the American Action Forum, a conservative think tank, the consensus among panelists was pensions are not to blame for states’ fiscal woes. One panelist, Eli Lehrer, vice president of the Heartland Institute, said given the health of Wisconsin’s pension fund, Walker would be wise to focus his budget balancing effort elsewhere.

“The pension system in Wisconsin is fully funded,” Lehrer said. “As a budget focus, I think he’s better off expending his political capital somewhere else.”

Andrew Biggs, a pension expert at the American Enterprise Institute, said just because Wisconsin’s pension fund is solvent doesn’t mean it should be off-limits.

“It could be well-funded and still be a drain on the budget,” Biggs said.

Pew researcher Stephen Fehr said retirement benefit costs for all states continue to rise, and while states like New York and Wisconsin should be commended for maintaining their funding obligations amid hard times, they face financial strains.

“They don’t have a pension crisis, but on the other hand they do have some pressures as all states do when it comes to figuring out how do we pay our bills,” Fehr said.

New York and Wisconsin have fulfilled their pension fund obligations regardless of the economic times, Fehr said.

By: Larry Bivins, Greenbaypressgazette.com, April 27, 2011

April 28, 2011 Posted by | Collective Bargaining, Gov Scott Walker, Governors, Politics, Public Employees, States, Wisconsin | , , , , , , | Leave a comment

Martial Law Now A Reality In Michigan:The Voter’s Voice Doesn’t Really Matter Anymore

Last week saw the layoff of every public school teacher in Detroit, and the initial fruition of the highly-contested bill that allows emergency financial managers to have unconditional control over a city in a financial emergency. The city of Benton Harbor, Michigan, declared to be in a financial emergency by Governor Rick Snyder, now knows that, according to Snyder, the voter’s voice doesn’t really matter anymore.
 
Joseph Harris, the city’s new Emergency Financial Manager (EFM), dismantled the entire government, only allowing city boards and commissions to call a meeting to order, approve of meeting minutes and adjourn a meeting.
 
The law that allows Harris to “exercise any power or authority of any office, employee, department, board, commission, or similar entity of the City, whether elected or appointed,” was passed in March after the urging of Gov. Snyder, and despite thousands of protesters who came to the Lansing capitol throughout February and March.
 
Michigan AFL-CIO released a press release in response to Benton Harbor: “This is sad news for democracy in Michigan. It comes after the announcement of Robert Bobb in Detroit ordering layoff of every single public school teacher in the Detroit Public School system,” says Mark Gaffney, President of Michigan AFL-CIO. “With the stripping of all power of duly elected officials in Benton harbor and the attack on Detroit school teachers, we can now see the true nature of the Emergency Manager system.”
 
Earlier in the week, TMP Muckraker reported that the Detroit Public Schools’ EFM, Robert Bobb, sent 5,466 unionized teachers layoff notices “in anticipation of a workforce reduction to match the district’s declining student enrollment.” The notices are a part of the Detroit Teachers Federation collective-bargaining contract. TPM also reported that “Non-Renewal notices have also been sent to 248 administrators, and the layoffs would go into effect by July 29.”

By: Jennifer Page, Center for Media and Democracy, April 18, 2011

April 18, 2011 Posted by | Collective Bargaining, Conservatives, Democracy, Education, Elections, GOP, Government, Governors, Ideology, Jobs, Lawmakers, Middle Class, Politics, Public Employees, Republicans, Right Wing, State Legislatures, States, Union Busting, Unions, Voters | , , , , , , , , , , , , | Leave a comment

Amoral And Illegal: Gov Walker Misleads On His Administration’s Legal Support For GOP Legislators

Last week, Wisconsin Governor Scott Walker put a deceptively positive gloss on the legal battles surrounding his stalled union-busting bill in an interview with the right-wing Newsmax website.

Background on the Legal Battles

As CMD has reported, Governor Walker’s union-busting bill (“Act 10”) was amended by a conference committee on March 11 to avoid quorum requirements, then passed by the Wisconsin Senate with no Democrats present. State Open Meetings laws require 24 hours notice for all meetings, or two hours with “good cause,” but neither standard was met at the March 11 vote. Following a complaint from Dane County’s District Attorney, Judge MaryAnn Sumi found a probable Open Meetings violation and issued an order preventing the Secretary of State from publishing the bill, a necessary step before it can become law. Attorney General JB Van Hollen appealed the decision, and the Court of Appeals offered the case to the state Supreme Court on March 24, which has not taken action (possibly because Justice Prosser’s election is still pending). In the meantime, the Legislative Reference Bureau published the law under statutory authority separate from that of the Secretary of State, raising questions of whether the bill has become law, and prompting Judge Sumi to issue an order declaring it not to be in effect.

On April 7, Governor Walker’s Administration jumped into the fray and asked the Wisconsin Supreme Court to vacate Judge Sumi’s order.

Walker Administration’s Legal Position Contrary to Governor’s Statements

The Walker Administration’s petition was discussed during the Governor’s videotaped interview with mustachioed Newsmax anchor Ashley Martell. Walker said:

My administration this week appealed to the state Supreme Court on two counts. Really both on […] the fact that we don’t believe it is legitimate for the judge to be an issuing a temporary restraining order when we think the law was dufully (sic) passed by the members of the state legislature. (at 3:29)

Mustache Martella replied: “speaking of that, the legal issue seems to be the notice given before the vote . . .”

The heart of the issue that is regarding the restraining order really involves the issue of the open meetings laws and whether or not there was notice on that. The legislature feels, and I think they are right about this, that they very clearly did follow the statute, that under other circumstances there might be a problem, but in a special session . . . it is clear that they followed the law. (at 4:12)

Despite Walker’s faith in the conduct of fellow Wisconsin Republicans, his legal team is not contending that GOP legislators followed the law, but only that violations of that law be enforced more leniently. In its petition to the Supreme Court, not once does Walker’s Administration argue that Republican legislators acted lawfully.

Walker’s petition focuses on three issues, claiming (1) that breaking an Open Meetings law is a “procedural violation” that cannot be punished through voiding a legislative act, (2) that a court does not have jurisdiction to prevent a bill from becoming law (even if it may have authority to void a law once enacted), and (3) that the Act is published and is now law, meaning Sumi’s order has no relevance. The brief also questions whether the District Attorney can sue to invalidate a statute, and whether Judge Sumi could enter an order considering defendants’ legislative immunity. Significantly, the petition does not discuss whether legislative notice rules can override Open Meetings laws (which, if argued, could have implied legislators acted lawfully).

Put Your Money Where Your Mouth Is

Walker’s Newsmax statements give the impression that legislators acted honorably, avoiding the fact that they may have illegally shut citizens out of the political process, violated the state’s constitutionally-recognized open government guarantees, and did so on a bill that has a significant impact and massive public attention. This is no small matter. As the late Wisconsin Supreme Court Justice William Bablitch wrote in the 1994 case State ex rel. Hodge vs. Town of Turtle Lake: 

The purpose of the Open Meetings Law is to protect the public’s right to be informed to the fullest extent of the affairs of government. . . An open meetings law is not necessary to ensure openness in easy and noncontroversial matters where no one really cares whether the meeting is open or not. Like the First Amendment, which exists to protect unfavored speech, the Open Meetings Law exists to ensure open government in controversial matters.

Open Meetings laws are fundamentally important to Wisconsin’s democracy, and violations are serious business. If Walker genuinely believes the GOP lawmakers’ actions were virtuous and lawful, his administration’s legal documents should reflect that.

By: Brenda Fisher, Center for Media and Democracy, April 13, 2011

April 14, 2011 Posted by | Collective Bargaining, Democracy, Gov Scott Walker, Governors, Ideologues, Ideology, Politics, Public Employees, Right Wing, State Legislatures, Union Busting, Unions, Wisconsin, Wisconsin Republicans | , , , , , , , , , | Leave a comment

Democrats Are Fighting Back In Ohio

Ohio Democrats this week introduced into a divided state legislature a new bill that would allow Ohio citizens to recall Governor John Kasich and other legislatures. The state has been in an ideological upheaval for months after Kasich’s budget bill was introduced, similar to the Wisconsin bill that has received incredible national attention for stripping unions of their collective bargaining rights, and eventually signed April 2nd after some concessions were made by the Republican-held Assembly and Senate.

There are now 17 other states where similar bills have been passed. Democrats in Ohio are now trying to join the ranks of some of those states like Wisconsin, where voters also have the option to recall their elected legislatures.

Reuters reported that State Representatives Mike Foley and Robert Hagan’s bill would allow “Ohio voters to undertake a recall effort if they gather petition signatures of voters equal to 15 percent of the total votes for governor or in a particular legislative district in the last election.”

Recall efforts are already well underway in Wisconsin, where 16 senators have petitions started against them. Governor Scott Walker, in his inaugural term, cannot be recalled until he has served in office for one full year, according to Wisconsin state law.

Kasich’s bill to limit collective bargaining rights of unions and slash funding for many state-funded programs has received passionate opposition by supporters of workers’ rights. Protests in Columbus drew thousands in February, riding the wave of protests started in Madison and that then spread throughout the country.

The hotly-contested Senate Bill 5, or SB5 as it has been dubbed by the media, severely limits the actions of unions, and in conjunction with Kasich’s budget, introduces major cuts to public programs: like a $852 million cut to schools.

The Toledo Blade explains SB5: “It prohibits all public employees from striking, prohibits local governments from picking up any portion of an employee’s contributions to his pension, eliminates automatic step and longevity raises in favor of a yet undefined performance-pay system, and prohibits unions from automatically collecting ‘fair share’ fees from members of a workforce who opt not to join the union.”

Besides the Democrats’ efforts to pass the recall bill, Ohio law also allows for a public referendum of any passed bill. Opponents of the bill need to gather 231,147 signatures 90 days from the official signing of the bill for the statewide referendum to be voted on Nov. 8th.

By: Jennifer Page, Center for Media and Democracy, April 11, 2011

April 13, 2011 Posted by | Collective Bargaining, Conservatives, Democracy, Democrats, Economy, Elections, GOP, Gov John Kasich, Gov Scott Walker, Government, Governors, Ideologues, Labor, Lawmakers, Middle Class, Politics, Public Employees, Republicans, State Legislatures, States, Union Busting, Unions, Voters | , , , , , , , , | Leave a comment

Wisconsin Supreme Court Race Throws A Spanner In The Works Of Wisconsin Wingnuts

While Wisconsin Congressman Paul Ryan prepares to shut down the federal government to prove that government is bad, analysts say the radical agenda of Wisconsin Governor Scott Walker suffered a major set back today as his good friend incumbent Justice David Prosser was defeated for Wisconsin Supreme Court. The AP unofficial vote count, with 100 percent of the precincts reporting, puts challenger Joanne Kloppenburg ahead by slightly more than 200. A recount is doubtless on the way.

In a state that has never unseated a conservative Supreme Court justice, people power fueled a concentrated effort to deny the Imperial Walker one branch of government. Walker’s opponents hope a Kloppenburg victory will swing the Supreme Court in a more independent direction and set the stage for the court to strike down Walker’s controversial collective bargaining law. While the fate of the law is uncertain, Kloppenburg’s three week sprint from dead-in-the-water to victor may give Walker, Ryan and other Wisconsin politicians pause as they rush to radically reshape government to benefit the privatizers and profiteers. 

Sleepy Court Race Electrifies the State

While it may seem odd to many Americans, Wisconsinites like to elect their judges. Although an elected judiciary has its problems (namely, unseemly high-dollar elections), the ballot box sometimes hands citizens a rare opportunity to un-elect judges — and that is what many Wisconsinites decided to do today.  Prosser, a former Republican Assembly Speaker, stumbled when his campaign embraced Walker’s election.

The Kloppenburg victory is stunning. Six weeks ago, sitting Judge David Prosser was a shoo-in and the challenge by Assistant Attorney General Kloppenburg was a snooze fest. But something happened on the way to the high court. A governor, who was elected to create jobs, took office and quickly moved to disenfranchise voters and kneecap unions so they could no longer be a viable force in state elections. The raw power grab sparked a spontaneous uprising, the likes of which this state has never seen, and the Supreme Court race was the next vehicle for people to have their voices heard.

Proxy Fight Over Worker Rights

The whole country took notice when firefighters, teachers and cops stood with working families across Wisconsin to say ‘no’ to Walker’s radical plans to bust unions, cut $1 billion from schools and privatize the university system.

When his “budget repair bill” was passed March 9th, many national observers thought the fight was over.  With large margins in both houses, Walker’s stranglehold on government seemed invincible.

But irate Wisconsinites fought back on multiple fronts, filing lawsuits over the way in which Senate leaders rammed the bill through with less than the requisite notice required under the state open meetings law, blocking the bill’s implementation. They filed recall petitions against eight Wisconsin senators and this week delivered the requisite signatures for two of those recalls well ahead of schedule. They turned their attention to the heretofor unnoticed race for Wisconsin Supreme Court. Within days, handmade signs for Joanne Kloppenburg popped up across the state. Many voters understood that to win any of the battles ahead over worker rights, over the recalls, over redistricting and more, a more balanced judiciary was needed.

Kloppenburg went from being a long-shot to victory in a three-week sprint marked by huge independent expenditures on both sides. The anticipated recount will keep the juices flowing and will fuel the remaining recall fights.

Shock Doctrine at Work

While some voters believe the court will act as a check and balance on the madness at the state level, they are concerned that Paul Ryan continues to run amok at the federal level — threatening a complete government shut down. At the same time that Walker was working to obliterate unions and privatize public schools, Ryan, Chair of the House Budget Committee, decided to go after Grandma with the complete privatization of Medicare. His radical budget bill, unveiled this week, slashes trillions of dollars from America’s social safety net and throws the elderly into the private insurance market with a “voucher” in their pocket.

Less interested in balancing the budget than redistributing wealth, his budget plan would funnel billions into the pockets of big insurance firms while also giving a ten percent tax break to corporations and the very richest Americans.

What is really going on here? Naomi Klein warned in her groundbreaking book “Shock Doctrine” that the right-wing excels at creating crises, real and imagined, to viciously advance their pro-corporate anti-government agenda. She credits economist Milton Friedman who observed that “only a crisis—actual or perceived—produces real changes. When the crisis occurs, the actions that are taken depend on the ideas that are lying around. That, I believe, is out basic function: to develop alternatives to existing policies to keep them alive and available until the politically impossible becomes politically inevitable.”

UW Professor Joel Rogers wrote recently:  “As explained by Grover Norquist and Karl Rove, this project aims at national repeal of most of democratic achievements of the 20th century, a return to business domination of public life not seen since the Gilded Age and McKinley.”

The Wall Street financial crisis caused by years of deregulation and lack of government oversight cost Americans eight million jobs, tanking federal and state tax receipts and creating budget shortfalls. Ryan and Walker are moving to take advantage this real jobs crisis to cook up a fake deficit crisis to advance a radical agenda that is hostile to the very idea of government – the idea that sometimes services are best provided and things are best accomplished collectively, for the public good, and not for corporate profit.

Today, many voters believe that this agenda was checked in Wisconsin. While another recount battle looms, voters of Wisconsin are pledging that they will not allow this victory to be stolen.

By: Mary Bottari, Center For Media And Democracy, April 6, 2011

April 6, 2011 Posted by | Banks, Collective Bargaining, Corporations, Debt Crisis, Deficits, Democracy, Economy, Elections, GOP, Gov Scott Walker, Government Shut Down, Labor, Medicare, Middle Class, Politics, Public Employees, Rep Paul Ryan, Republicans, Right Wing, Union Busting, Unions, Voters, Wisconsin, Wisconsin Republicans | , , , , , , , , , | Leave a comment

« Previous Entries     Next Entries »