Austerity Measures in Wisconsin: The Damage Done

The main measures taken against state sector workers in Wisconsin are these:

[1] Single insurance plans for state workers will increase from $31 per month to $84 dollars per month. For families this will increase from $78 per month, to $208 per month.

[2] Pension contributions taken out of the workers paychecks will rise from .2% of salary to 5.8% and will be taken out of every check from workers gross (before taxes and everything) income.

[3] In all the gross monthly income of $1956.64 for this same $12.229 an hour worker will drop by $197.48 (€142.052) per month to $1759.48 per month in pay before taxes. Since Earned Income Credits and Homestead Tax Credits are being reduced this same worker will see state taxes increase.

[4] Furlough days will continue until June 30, 2011 and must be used up before this time while paycheck deductions will start March 27, 2011.

[5] Union dues will stop being deducted, workers may voluntarily pay dues to the union of $17.56 per paycheck. This is not likely to occur save among loyal union supporters. This measure is of main concern to the Democratic Party and the unions who stand to lose funds because of this, thus they opposed the end of collective bargaining but accepted all the other cuts from the start.

[6] Collective bargaining for everything other than wages, with pay increases rising no higher than the rate of inflation. A wage increase lower than the rate of inflation means a de facto pay cut. There will be no more bargaining over workplace safety, hours, conditions, or benefits.

[7] UW Hospitals and clinic employees, UW faculty and academic staff, home health care workers, family child care workers will lose all collective bargaining rights including for wages.

[8] Removal of collective bargaining may well cost state transit systems $46.6 million in funding from the Federal government.

[9] State heating plants can be sold in "no bid" contracts for pennies. These workers are unionized and will most likely be laid off and replaced as the plants get sold off.

[10] Medicaid/BadgerCare can be altered by the Governor at will without any changes to state laws. This gives the Governor's office extraordinary power over Medicaid and BadgerCare funding. The Governor is already proposing a $500 million dollar cut. These state cuts will result in undetermined reductions in Federal funds as well.

[11] The state's public life insurance program which gives people $10,000 dollars in funeral benefits if they pay into it, will be eliminated along with the jobs of those workers who run the program itself.

[12] School aid cuts combined with local revenue caps will cost the public schools over $750 per student. A class of thirty students (soon to be a rarity) will see a loss of funding of $22,000.

[13] Tax cuts for the capitalists, and tax hikes for the poor are in the bill as mentioned above. The Earned Income Tax Credit and the Homestead Tax Credit will be reduced by $51 million to be paid by the lowest wage earners in the state in both public and private sector employment.

[14] Big construction firms will benefit from a $410 million dollar increase.

[15] General transportation aid will be cut by 10%, or $81.6 million dollars. These funds reimburse costs to counties and municipalities to offset the costs of road construction, maintenance, traffic, and police costs. Yes, even the police will take a cut, contrary to what the Governor claimed when introducing the initial Senate Bill 11. Local governments will have no choice but to lay off and reduce working hours and wages for workers who maintain these county and municipal roads.

[16] Aid to local government will be cut by about 9%, counties by 24%. Ensuing cuts to program for the elderly, the disabled, to public parks, snow removal, libraries, and all services provided by county, city or village governments. Again, layoffs, reductions in work hours and wage cuts will result because of this.

[17] State vocational technical colleges will be cut by $35 million, or 30%. Again, cuts and layoffs will result because of this.

[18] The UW Madison will be privatized under the bill, it is currently run by a state board of regents. Tuition will increase by 20% as aid to the UW system will be cut by $250 million dollars, with a $125 million cut to the UW Madison itself.

[19] The Governor will have the right to fire or terminate workers employment at will in case of any workplace action, or strike, or where three or more days of work have been missed by the state employees.

For further gory details one can go to the following websites:

OSER oser.state.wi.us


ETF etf.wi.gov


UW Madison budget.wisc.edu

Another note: The next items on the state government's agenda are Arizona-style anti-immigration legislation and legislation outlawing all abortion even in cases of rape or where the mother's life is at risk.