The MacIver News Service reports that, because the state is facing a nearly-$340 million hole in the current state budget, which ends on June 30, Governor Scott Walker will be instituting several changes in the compensation scheme:
- Members of the Wisconsin Retirement System, both in state will be paying half of the total pension contribution, currently estimated to be 5.8% of their salary. Previously, the entire amount had been covered by the employers (i.e. government) outside the scope of wages.
- The percentage of the health insurance paid by state employees will increase from a minimum of 5% of the lowest-cost option to a minimum of 12% of the lowest-cost option, and local governments participating in the system will be prohibited from paying more than 88% of the lowest-cost option.
- The collective-bargaining power of all the public-sector unions will be severely limited once the current agreements expire (except for local police/fire departments, and the State Patrol):
- The only thing that will be negotiated is base compensation, and any increase beyond that of CPI inflation would need to be approved by referendum.
- Contracts will be one year in length, and failure to reach a deal will result in a wage freeze until a new contract is approved.
- Union locals will face yearly re-certification votes.
- There will be no more compulsory dues collected.
In exchange, Walker will not institute any new furloughs or changes in the civil service system, and vacation and sick-leave policy in either the budget repair bill or the FY2012-FY2013 budget.
The MacIver News Service also created the following video report including reaction from both sides of the aisle:
[youtube]http://www.youtube.com/watch?v=eA9yOeX0qKY[/youtube]
Revisions/extensions (3:15 pm 2/11/2011) – It would help if I link to the report.
