It’s unfortunate that what we see happening in Wisconsin may well be the beginning of a national movement. The fight in Wisconsin is similar to fights that will be taking place in state legislatures across the land. On the surface it is about balancing the current budgets, but the reality is it’s about the power of public employee labor unions to cripple local governments. Republican elected officials are talking about the impossible task of funding employee benefits and pension plans for the long term that must be paid with current general fund dollars. Today we are finding that we made promises previously we can’t keep. And there’s the rub!
The current recession and economic crisis in our country is exposing the weakness of a system very much a Ponzi Scheme. We pay yesterday’s promises with today’s dollars knowing that eventually the payouts will be greater than the income and the system will collapse.
The Democrats want to talk about the cost as a percentage of unknown growth in the economy. If you can be sure that there will be inflated revenue streams down the road then they believe it’s worth the risk.
So what strategy should we employ when every budget scenario we try produces the same general result?
Elected Officials today can’t make promises to employees that create unfunded liabilities to successors down the road. And that is the solution if there is one. If benefit and pension obligations for the future are set aside today from current revenues then there is a better chance that money will actually be available when retiring employees are ready.
The down side is that there is no money left for programs and projects that benefit the public today. The money is all tied up in employee overhead.
Elected officials in every jurisdiction in our country should be huddling with their managers and finance people to assess their long term commitments and their ability to fund them. Every time a labor contract comes up for negotiation unfunded obligations have to be considered.
If voters and taxpayers express their willingness to have their taxes raised year after year by electing council members, commissioners and legislators who solve the problem by tapping taxpayers then there should be no complaints. If my councilmember comes out in a hearing and tells the public that we need to raise taxes because we agreed to benefits and pensions we can’t afford I might think about who I elect. So those elected officials are more likely to tell you they need to raise taxes for books, fire trucks or pothole repair.
In Wisconsin the Democratic Senators fled from the capitol to prevent a vote on an issue they are sure to lose. They are saying that they won’t return unless the Governor agrees to talk about it and be prepared to compromise. They are outraged that the Republicans are taking advantage of the power they won in the last election.
Do we need to be reminded of that day not too long ago when President Obama turned to Senator John McCain and said quite pointedly “There are consequences of elections. We won!”
Who could argue that there weren’t consequences of the 2008 elections any more than anyone could argue that after the 2010 elections there might also be consequences?
I don’t remember too much compromising in either house of the Congress when the Health Care Reform Act was approved without any hearings. I don’t even remember too much outcry from the media when Speaker Pelosi stood there and told us that we needed to approve it before we found out what was in it.
I am sure that teachers, firefighters, police and other state workers in Wisconsin are fine people just like they are here in Washington, but I also know that the leverage they have from their collective bargaining agreements puts the taxpayers in that state and every other state in peril not commensurate with the private sector.
Voters sent a strong message in the last election cycle. They said they wanted to reverse the course set by Democrats to increase the size and power of government to take our dwindling resources to pay for commitments out of line with trends in the private sector.
Voters were clear that if what President Obama delivered after promising a change for the better, they wanted no part of it.
Republicans were elected to return our government to a path of long term fiscal solvency. It is our jobs as citizens to be as vigilant in holding their feet to the fire as we were in campaigning for their election.
No Loss for Words 
Government Ponzi Robs Peter to Pay Paul!
by Steve DanaIt’s unfortunate that what we see happening in Wisconsin may well be the beginning of a national movement. The fight in Wisconsin is similar to fights that will be taking place in state legislatures across the land. On the surface it is about balancing the current budgets, but the reality is it’s about the power of public employee labor unions to cripple local governments. Republican elected officials are talking about the impossible task of funding employee benefits and pension plans for the long term that must be paid with current general fund dollars. Today we are finding that we made promises previously we can’t keep. And there’s the rub!
The current recession and economic crisis in our country is exposing the weakness of a system very much a Ponzi Scheme. We pay yesterday’s promises with today’s dollars knowing that eventually the payouts will be greater than the income and the system will collapse.
The Democrats want to talk about the cost as a percentage of unknown growth in the economy. If you can be sure that there will be inflated revenue streams down the road then they believe it’s worth the risk.
So what strategy should we employ when every budget scenario we try produces the same general result?
Elected Officials today can’t make promises to employees that create unfunded liabilities to successors down the road. And that is the solution if there is one. If benefit and pension obligations for the future are set aside today from current revenues then there is a better chance that money will actually be available when retiring employees are ready.
The down side is that there is no money left for programs and projects that benefit the public today. The money is all tied up in employee overhead.
Elected officials in every jurisdiction in our country should be huddling with their managers and finance people to assess their long term commitments and their ability to fund them. Every time a labor contract comes up for negotiation unfunded obligations have to be considered.
If voters and taxpayers express their willingness to have their taxes raised year after year by electing council members, commissioners and legislators who solve the problem by tapping taxpayers then there should be no complaints. If my councilmember comes out in a hearing and tells the public that we need to raise taxes because we agreed to benefits and pensions we can’t afford I might think about who I elect. So those elected officials are more likely to tell you they need to raise taxes for books, fire trucks or pothole repair.
In Wisconsin the Democratic Senators fled from the capitol to prevent a vote on an issue they are sure to lose. They are saying that they won’t return unless the Governor agrees to talk about it and be prepared to compromise. They are outraged that the Republicans are taking advantage of the power they won in the last election.
Do we need to be reminded of that day not too long ago when President Obama turned to Senator John McCain and said quite pointedly “There are consequences of elections. We won!”
Who could argue that there weren’t consequences of the 2008 elections any more than anyone could argue that after the 2010 elections there might also be consequences?
I don’t remember too much compromising in either house of the Congress when the Health Care Reform Act was approved without any hearings. I don’t even remember too much outcry from the media when Speaker Pelosi stood there and told us that we needed to approve it before we found out what was in it.
I am sure that teachers, firefighters, police and other state workers in Wisconsin are fine people just like they are here in Washington, but I also know that the leverage they have from their collective bargaining agreements puts the taxpayers in that state and every other state in peril not commensurate with the private sector.
Voters sent a strong message in the last election cycle. They said they wanted to reverse the course set by Democrats to increase the size and power of government to take our dwindling resources to pay for commitments out of line with trends in the private sector.
Voters were clear that if what President Obama delivered after promising a change for the better, they wanted no part of it.
Republicans were elected to return our government to a path of long term fiscal solvency. It is our jobs as citizens to be as vigilant in holding their feet to the fire as we were in campaigning for their election.
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