The word “crisis” in this country tends to be overworked these days, yet it’s hard to avoid using it when looking at the fiscal condition of state and local government. Unfunded pension and other liabilities for states and localities now exceed $3 trillion. More than 40 states are facing a combined budget shortfall of $125 billion for fiscal year 2012. Texas faces a projected $27 billion deficit over its coming two-year budget cycle. Labor costs are heavily driving this situation. According to preliminary Bureau of Labor Statistics data, state and local government employees in 2010 on average received a total compensation of $39.60 an hour, compared to the private-sector full-time employee equivalent average of $27.42 an hour. Wages in the public sector were 35 percent higher and benefits were 69 percent higher. Public employees, moreover, enjoy greater security. From late 2007, when the latest recession began, through mid-2010, the private sector shed a net roughly 7 million jobs, while state and local governments added 110,000 jobs. Wisconsin mirrors the larger picture. The state faces a projected $3.6 billion budget gap over the next biennial cycle. And at present, it faces a $58 million shortfall in its Medicaid program even taking into account a $194 million federal contribution.
There is a certain poetic justice here. Wisconsin back in 1959 was the first state to give all public-sector workers collective bargaining rights. Many states followed during the Sixties and after, triggering a revolution in public-sector unionism. Only a dozen states, generally among the least-populated, still bar public-sector
Union leaders might not have a persuasive case, but they do have a persuasive ally in President Barack Obama. In a Wednesday sit-down White House interview with Milwaukee NBC affiliate WTMJ-TV, the president, parsing his words somewhat, stated: “Some of what I’ve heard coming out of Wisconsin, where they’re making it harder for public employees to collectively bargain generally, seems like more of an assault on unions. I think everybody’s got to make some adjustments, but I think it’s also important to recognize that public employees make important contributions to our states and our citizens.” The White House is providing more than talk. The president’s political operation, Organizing for America, starting Monday made phone calls, distributed Twitter and Facebook messages, and sent e-mails via group lists, in an effort to build mass support for the unions. This campaign came on the heels of a speech by Democratic National Committee Chairman Timothy Kaine exhorting Wisconsin union leaders.

If you wait long enough, the truth about unions always shows up
bargaining. The year 2009 represented a milestone. For the first time, union members in the public sector outnumbered those in the private sector, 7.9 million to 7.4 million. These figures represented 37.4 percent and 7.2 percent of their respective labor forces, falling somewhat in 2010 to 36.2 percent and 6.9 percent. Government employees, regardless of union density, have a natural incentive to behave politically, for it is through politics that they have obtained and expanded their sinecures. Enlarged government and enlarged union bargaining power go hand in hand. And governors and legislators typically have gone along with union demands, lest they be blamed for service shutdowns.
For this entire article please go here:
http://www.nlpc.org/stories/2011/02/20/union-bullies-shut-down-wisconsin-legislature-effort-block-fiscal-reform
Face Forward Comments:
Unions were created to protect people against big business. Does America really think that the State employees in WI need protection from the state? And to compare the teacher strike to the Egyptian pro democracy protest is just stupid. “Give me a $3 dollar perscription card or give me death” is not even close to reality. Make sure to read the entire artice so you can see Michael Moore’s comments…… What a dufus!