Wisconsin Budget Repair Bill
Encyclopedia
The Wisconsin Budget Repair Bill was legislation proposed by Republican Governor
Scott Walker
and passed by the Wisconsin Legislature
to address a projected $3.6 billion budget deficit.
Scott Walker
Initially, legislative Democrats
and union leaders offered to accept the increased cost of benefits but not the removal of bargaining rights. Walker rejected the idea because they "stood in the way of local governments and school districts being able to balance their budget."
As a tactic to prevent passage of the bill, all 14 Democratic members of the Wisconsin State Senate
fled the state of Wisconsin and traveled to Illinois
in order to delay a vote on the bill. With only 19 Republican members, the Senate would not have the 20 Senators required for a quorum in order to vote on the bill, since it is a fiscal bill. On February 20, all 14 Senate Democrats announced they would remain in Illinois indefinitely. However, the provision that the protests center around collective bargaining could still be passed as a separate bill in the absence of the Senate Democrats because it is not considered a fiscal bill.
Walker and legislative Republicans tried several tactics to lure the 14 deserting Democratic Senators to return. The Wisconsin legislature attempted to pass a bill that would require Wisconsin residents to have some form of voter identification to vote, a bill Democrats strongly oppose. Since this scheme spends money for free IDs to comply with federal constitutional requirements, the voter ID bill would require the same quorum as the main budget bill. Walker repetitively threatened to lay off state workers. That deadline passed without incident. On February 27, he announced a new deadline of March 1. Those deadlines passed without incident. State Senate Majority Leader, Scott Fitzgerald, stripped Democratic staffers of their access to the copy machines if their representatives were absent without leave for two days or more, forcing staffers to pay for printing themselves. Senators were not allowed to receive their salary via direct deposit if they are absent for two days or more; this forced them to collect their pay checks in person (Senator Jon Erpenbach
was able to circumvent this by granting his staffers power of attorney
.) On March 2, Senate Republicans voted to fine absent members $100 per day of absence. On March 3, the Wisconsin Senate Republicans ordered the arrest of the Wisconsin 14 for being "in contempt and disorderly behavior", authorizing the Senate Sergeant-at-Arms to seek help from law enforcement officers and to use force to return the senators to the Capitol; James Palmer, the head of the Wisconsin Professional Police Association, described the action as a violation of the Wisconsin state constitution.; however, Wisconsin State Patrol officers
were unable to cross state lines into Illinois.
Assembly Republicans began procedures to move the bill to a vote on February 22. Hundreds of constituents had signed up to give testimony while Democrats submitted dozens of amendments and conducted speeches, all which delayed the vote. At 1:00 a.m. on February 25, following sixty hours of debate, the final amendments had been defeated and the Republican leadership of the Wisconsin State Assembly cut off debate as well as the public hearing and moved quickly to pass the budget repair bill in a sudden vote. The vote was 51 in favor and 17 opposed, with 28 representatives not voting. The final vote took place without warning, and the time allowed for voting was so short (lasting only 5–15 seconds) that less than half of the Democratic representatives were able to vote; reportedly, many were pushing the voting button as hard as possible but it didn't register. Four Republican representatives voted against the bill.
On February 27, it was reported by the media that Republican State Senator Dale Schultz
would not vote for the bill. However, Schultz refused to let his intentions be known regarding the bill; he had previously attempted a compromise budget plan which was rejected by Governor Walker. Schultz got up during a Senate session to propose his amendment, but instead took his missing colleagues to task, stating that he couldn't propose it because they weren't there.
On March 9, Wisconsin Republicans held a joint Assembly-Senate committee meeting to discuss quorum requirements for the union stripping bill. The meeting was only announced two hours in advance of its start. The Senate requires a quorum to take up any measures that spend money, however by removing parts of the bill related to money, they had discovered a way to bypass the chamber's missing Democrats. After the meeting, the Senate passed the legislation 18-1. Wisconsin Senator Dale Schultz
was the only Republican to vote "no".
On Thursday, March 10, the Wisconsin Assembly passed the collective bargaining bill with a vote of 53–42. Protesters screamed "shame!" as the Republicans quickly filed out of the building.
On March 11, Governor Walker signed the bill and put out a statement rescinding layoff notices for 1,500 public workers. He said the bill's passage "helped us save 1,500 middle-class jobs by moving forward this week with the budget repair. The state will now be able to realize $30 million in savings to balance the budget and allow 1,500 state employees to keep their jobs."
On March 12, the fourteen Democratic senators who had left the state returned and were met by crowds of 85,000 to 185,000, the largest crowds yet of the four weeks of protests. Teachers, police, firefighters, nurses, and students were joined by farmers who paraded their farm vehicles around Capitol Square. One of the returning senators, Spencer Coggs
, said that "[w]e are back to unite and fight with our supporters. We gave them hope. They gave us inspiration." In contrast, senate majority leader Scott Fitzgerald
said that the returning senators were "the most shameful 14 people in the state of Wisconsin[...]an absolute insult to the hundreds of thousands of Wisconsinites who are struggling to find a job, much less one they can run away from and go down to Illinois."
On March 14, the Republican Senate President, Scott Fitzgerald, announced that despite returning, none of the Senate Democrats would be allowed to vote in committee because they were in contempt of the Senate. However, the next day, Fitzgerald said the contempt finding and fines would be lifted.
On March 18, Judge Sumi issued a stay on the bill because it had been passed without the required the 24 hours' notice to inform the public of the meeting. Attorney General J. B. Van Hollen
then announced he was appealing the ruling. Despite this, on March 25, the Legislative Reference Bureau bypassed the Secretary of State's office and published the collective bargaining law, with Republicans saying it is law and they would enforce it. On March 29, Judge Sumi reiterated that the bill had not become law regardless of the entity which published it, and public officials who attempted to enforce it risked legal sanctions.
However, on June 14, the State Supreme court
overruled Sumi, declaring that the law was passed legally and was fully constitutional, as well as adding that Sumi had overstepped her jurisdiction.
, school officials put in place new policies they estimate will turn a $400,000 deficit into a $1.5 million surplus. In April 2011, the union had offered healthcare and pension concessions as well as a wage freeze, which it projected would save $1.8 million, but the offer was rejected by the school board. "The monetary part of it is not the entire issue," said board President Todd Arnoldussen. "It was in the collective bargaining agreement that we could only negotiate with them," said Arnoldussen referring to the past, when Kaukauna's agreement with the teachers union required the school district to purchase health insurance coverage from WEA Trust - a company created by the Wisconsin teachers union. This year, the trust told Kaukauna that it would face a significant increase in premiums. With the collective bargaining agreement gone, the school district is free to shop around for coverage. Kaukauna can reduce the size of its classes - from 31 students to 26 students in high school and from 26 students to 23 students in elementary school. In addition, there will be more teacher time for one-on-one sessions with troubled students. Those changes would not have been possible without the changes in collective bargaining. The money saved will be used to hire a few more teachers and institute merit pay.
The city of Milwaukee projects it will save at least $25 million a year and possibly as much as $36 million in 2012 from health care benefit changes due to not having to negotiate with unions. This is offset by about $14 million in cuts in state aid. This contrasts with Mayor Tom Barrett's initial comments in March, after the Walker administration and the nonpartisan Legislative Fiscal Bureau released figures on the extent of the aid cuts in the state budget.
, Racine
and Green Bay
districts; Milwaukee will lose $54.6 million, Racine $13.1 million and Green Bay $8.8 million. State aid to schools is computed by a complex formula based on property values, student enrollment and other factors. Property-poor districts get more aid than property-rich districts because they have lower property taxes. A provision in the budget repair law restricts the options of what districts can collect in property taxes and other revenue by requiring a referendum to prevent them from trying to replace their losses in state aid without first going to the citizens of the district. In Milwaukee, district officials announced they have eliminated 514 vacant positions and laid off almost 520 employees, including 354 teachers, mostly from elementary schools, which will result in larger class sizes. The Milwaukee School Board asked its teachers union for a side agreement requiring teachers to contribute 5.8% of their pay toward pensions, as the teachers union contract extends through 2013. The pension contribution would have saved about $20 million and 200 jobs, however the union rejected the concession. The Racine district has saved about $18 million from a wage freeze and larger employee contributions to pensions and health care, but the loss of state aid still required the elimination of 125 positions (although a larger than usual number of retirements and resignations and soon-to-be eliminated positions which are already vacant means the district will actual only need to lay off 60 employees) and the closing of all but one swimming pool for the summer. The Green Bay district also froze wages and required greater employee contributions to pensions and health care, but the district has stopped filling vacancies and may have to combine elementary grades into single classrooms. Nearly 70% of state school districts will be eligible for special adjustment aid, largely because of the decrease in the state's share of support. The special adjustment aid is intended to provide school districts with 90% of the state general aid from the previous year.
filing available shows that WEAC collected about $23.5 million in membership dues in fiscal year 2009 from its approximately 98,000 members. Most of the membership dues go to pay salaries and benefits. The organization employed 151 people and paid them $14,382,812 which is an average compensation total of $95,250 per employee. This figure includes not only professional staff, but also lost wages paid to union bargaining team members, officers, and delegates to conventions.
The Wisconsin Education Association Council (WEAC), announced they would lay off about 40% of its workforce. The layoffs and budget cuts are based on a projected loss of revenue as a result of the budget repair legislation.
The UW-Madison teaching assistant union, which was at the forefront of the protests against the new budget repair law, voted to decertify their union in August, 2011. Union leaders for state and local government workers said they also are leaning toward not recertifying. The Wisconsin Education Association Council, the state's largest teachers union, is the only state union to date that has indicated it plans to seek official union status with the state.
The Wisconsin Education Association Council (WEAC) announced it would allow local union affiliates to possibly drop certification and that the agency would accept whatever the local unions chose.
, Tom Maki, the Vice Chancellor for Business and Finance retired in March 2011 due to the reforms proposed in the budget repair legislation. In April 2011, the Vice Chancellor was re-hired without a search and screen process. He returned to his previous salary of $131,000. This permits him to collect both his state pension payments and his salary. State Representative Stephen Nass
(R-Whitewater), Chairman of the Assembly Colleges and Universities Committee, expressed outrage at the report that the Vice Chancellor is being allowed to "double dip" by retiring and then being re-hired for his position. Mr. Nass announced that he would cancel a public hearing on a bill supported by UW-Green Bay that would allow it and two other campuses to adopt a differential tuition system despite the current tuition cap. He also wants to determine if any state laws and UW System hiring rules were violated in this arrangement between the Vice Chancellor and Chancellor Thomas Harden as well as a request that the UW System conduct a review of all campuses to determine how many of these arrangements have been authorized since February. State law prohibits agencies from making an arrangement to rehire someone who is planning to retire before that person leaves. About 1,100 retirees were rehired in 2011. Tom Maki will resign from the vice chancellorship in December 2011. In October 2011, it was discovered that another UW-Green Bay administrator (Timothy Sewall) retired in March and returned to his $110,000-a-year position a month later, collecting both his salary and about $44,000 in annual retirement payments.
Governor of Wisconsin
The Governor of Wisconsin is the highest executive authority in the government of the U.S. state of Wisconsin. The position was first filled by Nelson Dewey on June 7, 1848, the year Wisconsin became a state...
Scott Walker
Scott Walker (politician)
Scott Kevin Walker is an American Republican politician who began serving as the 45th Governor of Wisconsin on January 3, 2011, after defeating Democratic candidate Tom Barrett, 52 percent to 47 percent in the November 2010 general election...
and passed by the Wisconsin Legislature
Wisconsin Legislature
The Wisconsin Legislature is the state legislature of the U.S. state of Wisconsin. The Legislature is a bicameral body composed of the upper house Wisconsin Senate and the lower Wisconsin Assembly...
to address a projected $3.6 billion budget deficit.
Legislation summary
- Pension contributions: The bill would require that employees of Wisconsin Retirement System (WRS) employers, and the City and County of Milwaukee contribute 50 percent of the annual pension payment. The payment amount for WRS employees is estimated to be 5.8 percent of salary in 2011. Currently, state, school district and municipal employees that are members of the WRS generally pay little or nothing toward their pensions.
- Health insurance contributions: The bill will require that state employees pay at least 12.6 percent of the average cost of annual premiums. In addition, the bill would require changes to the plan design necessary to reduce current premiums by 5 percent. Local employers participating in the Public Employers Group Health insurance would be prohibited from paying more than 88 percent of the lowest cost plan. The bill would also authorize the Department of Employee Trust Funds to use $28 million of excess balances in reserve accounts for health insurance and pharmacy benefits to reduce health insurance premium costs. Currently, state employees on average pay approximately 6 percent of annual health insurance premiums.
- Health insurance cost containment strategies: The bill directs the Department of Employee Trust Funds and the Group Insurance Board to implement health risk assessments and similar programs aimed at participant wellness, collect certain data related to assessing health care provider quality and effectiveness, and verify the status of dependents participating in the state health insurance program. In addition, it modifies the membership of the Group Insurance Board to require that the representative of the Attorney General be an attorney to ensure the board has access to legal advice among its membership.
- Pension changes for elected officials and appointees: The bill modifies the pension calculation for elected officials and appointees to be the same as general occupation employees and teachers. Current law requires these positions to pay more and receive a different multiplier for pension calculation than general classification employees. Under the state constitution, this change will be effective for elected officials at the beginning of their next term of office.
- Modifications to Wisconsin Retirement System and state health insurance plans: The bill directs the Department of Administration, Office of State Employment Relations and Department of Employee Trust Funds to study and report on possible changes to the Wisconsin Retirement System, including defined contribution plans and longer vesting periods. The three agencies must also study and report on changes to the current state health insurance plans, including health insurance purchasing exchanges, larger purchasing pools, and high-deductible insurance options.
- General fund impact: Authorizes the Department of Administration Secretary to lapse or transfer from GPR and PR appropriations (excluding PR appropriations to the University of Wisconsin) to the general fund estimated savings of approximately $30 million from implementing these provisions for state employees in the current fiscal year (2010–11). Segregated funds would retain any savings from these measures.
- Collective Bargaining: The bill would make various changes to limit collective bargainingCollective bargainingCollective bargaining is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreements that regulate working conditions...
for most public employees to wages. Total wage increases could not exceed a cap based on the consumer price indexConsumer price indexA consumer price index measures changes in the price level of consumer goods and services purchased by households. The CPI, in the United States is defined by the Bureau of Labor Statistics as "a measure of the average change over time in the prices paid by urban consumers for a market basket of...
(CPI) unless approved by referendumReferendumA referendum is a direct vote in which an entire electorate is asked to either accept or reject a particular proposal. This may result in the adoption of a new constitution, a constitutional amendment, a law, the recall of an elected official or simply a specific government policy. It is a form of...
. Contracts would be limited to one year and wages would be frozen until the new contract is settled. Collective bargaining units are required to take annual votes to maintain certification as a union. Employers would be prohibited from collecting union dues and members of collective bargaining units would not be required to pay dues. These changes take effect upon the expiration of existing contracts. Local law enforcement and fire employees, and state troopers and inspectors would be exempt from these changes.
- Career executive transfers: The bill would allow state employees in the career executive positions to be reassigned between agencies upon agreement of agency heads.
- Limited term employees (LTE's): The bill would prohibit LTE's from being eligible for health insurance or participation in the Wisconsin Retirement System.
- State employee absences and other work actions: If the Governor has declared a state of emergencyState of emergencyA state of emergency is a governmental declaration that may suspend some normal functions of the executive, legislative and judicial powers, alert citizens to change their normal behaviours, or order government agencies to implement emergency preparedness plans. It can also be used as a rationale...
, the bill authorizes appointing authorities to terminate any employees that are absent for three days without approval of the employer or any employees that participate in an organized action to stop or slow work.
- Quality Health Care Authority: The bill repeals the authority of home health care workers under the MedicaidMedicaidMedicaid is the United States health program for certain people and families with low incomes and resources. It is a means-tested program that is jointly funded by the state and federal governments, and is managed by the states. People served by Medicaid are U.S. citizens or legal permanent...
program to collectively bargain.
- Child care labor relations: The bill repeals the authority of family child care workers to collectively bargain with the State.
- University of Wisconsin Hospitals and Clinics (UWHC) Board and Authority: The bill repeals collective bargaining for UWHC employees. State positions currently employed by the UWHC Board are eliminated and the incumbents are transferred to the UWHC Authority.
- University of Wisconsin faculty and academic staff: The bill repeals the authority of UW faculty and academic staff to collectively bargain.
- Debt restructuring: The bill authorizes the restructuring of principal payments in fiscal year 2010-11 on the state's general obligation bonds. These principal repayments will be paid in future years. Since the state is required to make debt service payments by March 15, the bill must be enacted by February 25 to allow time to sell the refinancing bonds. This provision will reduce debt service costs by $165 million in fiscal year 2010-11. This savings will help address one‑time costs to comply with the Injured Patients and Families Compensation Fund state Supreme CourtWisconsin Supreme CourtThe Wisconsin Supreme Court is the highest appellate court in the state of Wisconsin. The Supreme Court has jurisdiction over original actions, appeals from lower courts, and regulation or administration of the practice of law in Wisconsin.-Location:...
decision and make payments under the Minnesota‑Wisconsin tax reciprocityReciprocityReciprocity may refer to:*Reciprocity , used to describe the concept of free trade with the United States of America** Reciprocal trade agreement, entered into in order to reduce tariffs, quotas and other trade restrictions on items traded between the signatories*Reciprocity , the relationship...
program.
- Medicaid deficit: Medicaid costs are expected to exceed current GPR appropriations by $153 million. The bill would increase the Medicaid GPR appropriation to address this shortfall.
- Authorize DHS to restructure program notwithstanding current law: In order to reduce the growth in Medicaid costs, the bill authorizes the Department of Health Services to make program changes notwithstanding limits in state law related to specific program provisions. The department is expected to develop new approaches on program benefits, eligibility determination and provider cost-effectiveness. The proposed changes will require passive approval of the Joint Committee on Finance before implementation.
- Technical correction: Act 28 included language that required unused GPR expenditure authority in the Medicaid GPR appropriation at the end of the biennium to be carried over to the subsequent biennium. The bill repeals this provision in order to ensure unspent funds in Medicaid lapse to the general fund balance.
- Aging and Disability Resource Centers (ADRC): The bill transfers an estimated $3 million in savings in this appropriation to Medicaid. ADRC's are the intake and assessment element of the state's Family Care program.
- Corrections: The bill provides $22 million GPR to address shortfalls in the Department of Corrections adult institutions appropriation. These shortfalls are due to health care costs, overtime, and reductions in salary and fringe benefit budgets under Act 28.
- Temporary Assistance to Needy Families (TANF) Funding for Earned Income Tax Credit (EITC): The bill allocates $37 million of excess TANF revenues to increase TANF funding for the EITC from $6.6 million to $43.6 million in fiscal year 2010-11. By increasing TANF funding, GPR funding for the EITC is reduced by a commensurate amount.
- Income Augmentation Revenues: Allows the Department of Children and Families and Department of Health Services to utilize $6.5 million of already identified income augmentation revenues to meet fiscal year 2010-11 lapse requirements.
- Act 28 Required Lapses by DOA Secretary: Under Act 28, the Department of Administration Secretary is required to lapse or transfer a total of $680 million in 2009-11 from appropriations made to executive branch agencies to the general fund. The bill would reduce this amount by $79 million to ensure the lapses can be met in the next five months as this was ineffectively addressed by the previous administration.
- Lapse of Funding from Joint Committee on Finance (JCF) Appropriation: The JCF appropriation includes $4.5 million related to estimated fiscal year 2010-11 implementation costs of 2009 Wisconsin Act 100 (operating while intoxicated enforcement changes). This funding is not anticipated to be needed in fiscal year 2010-11 and the bill lapses these amounts to the general fund balance.
- Sale of State Heating Plants: The bill authorizes the Department of Administration to sell state heating plants. The proceeds from any sale, net of remaining debt service, would be deposited in the budget stabilization fund.
- Shift Key Cabinet Agency Positions to Unclassified Status: The bill creates unclassified positions for chief legal counsel, public information officer and legislative liaison activities in cabinet agencies. An equivalent number of classified positions are deleted to offset the new unclassified positions. These activities are critical to each cabinet agency's overall mission and should have direct accountability to the agency head.
- University of Wisconsin–Madison flagship status: The bill also separates the flagship University of Wisconsin–MadisonUniversity of Wisconsin–MadisonThe University of Wisconsin–Madison is a public research university located in Madison, Wisconsin, United States. Founded in 1848, UW–Madison is the flagship campus of the University of Wisconsin System. It became a land-grant institution in 1866...
campus from the rest of the University of Wisconsin SystemUniversity of Wisconsin SystemThe University of Wisconsin System is a university system of public universities in the state of Wisconsin. It is one of the largest public higher education systems in the country, enrolling more than 182,000 students each year and employing more than 32,000 faculty and staff statewide...
.
Legislative history
The bill was proposed on February 14 in opposition to the Wisconsin Budget Repair Bill proposed by Republican GovernorGovernor of Wisconsin
The Governor of Wisconsin is the highest executive authority in the government of the U.S. state of Wisconsin. The position was first filled by Nelson Dewey on June 7, 1848, the year Wisconsin became a state...
Scott Walker
Scott Walker (politician)
Scott Kevin Walker is an American Republican politician who began serving as the 45th Governor of Wisconsin on January 3, 2011, after defeating Democratic candidate Tom Barrett, 52 percent to 47 percent in the November 2010 general election...
Initially, legislative Democrats
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...
and union leaders offered to accept the increased cost of benefits but not the removal of bargaining rights. Walker rejected the idea because they "stood in the way of local governments and school districts being able to balance their budget."
As a tactic to prevent passage of the bill, all 14 Democratic members of the Wisconsin State Senate
Wisconsin State Senate
The Wisconsin Senate, the powers of which are modeled after those of the U.S. Senate, is the upper house of the Wisconsin State Legislature, smaller than the Wisconsin State Assembly...
fled the state of Wisconsin and traveled to Illinois
Illinois
Illinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,...
in order to delay a vote on the bill. With only 19 Republican members, the Senate would not have the 20 Senators required for a quorum in order to vote on the bill, since it is a fiscal bill. On February 20, all 14 Senate Democrats announced they would remain in Illinois indefinitely. However, the provision that the protests center around collective bargaining could still be passed as a separate bill in the absence of the Senate Democrats because it is not considered a fiscal bill.
Walker and legislative Republicans tried several tactics to lure the 14 deserting Democratic Senators to return. The Wisconsin legislature attempted to pass a bill that would require Wisconsin residents to have some form of voter identification to vote, a bill Democrats strongly oppose. Since this scheme spends money for free IDs to comply with federal constitutional requirements, the voter ID bill would require the same quorum as the main budget bill. Walker repetitively threatened to lay off state workers. That deadline passed without incident. On February 27, he announced a new deadline of March 1. Those deadlines passed without incident. State Senate Majority Leader, Scott Fitzgerald, stripped Democratic staffers of their access to the copy machines if their representatives were absent without leave for two days or more, forcing staffers to pay for printing themselves. Senators were not allowed to receive their salary via direct deposit if they are absent for two days or more; this forced them to collect their pay checks in person (Senator Jon Erpenbach
Jon Erpenbach
Jon B. Erpenbach is a Democratic member of the Wisconsin Senate, representing the 27th district since 1999.-Early life, education and career:...
was able to circumvent this by granting his staffers power of attorney
Power of attorney
A power of attorney or letter of attorney is a written authorization to represent or act on another's behalf in private affairs, business, or some other legal matter...
.) On March 2, Senate Republicans voted to fine absent members $100 per day of absence. On March 3, the Wisconsin Senate Republicans ordered the arrest of the Wisconsin 14 for being "in contempt and disorderly behavior", authorizing the Senate Sergeant-at-Arms to seek help from law enforcement officers and to use force to return the senators to the Capitol; James Palmer, the head of the Wisconsin Professional Police Association, described the action as a violation of the Wisconsin state constitution.; however, Wisconsin State Patrol officers
Wisconsin State Patrol
The Wisconsin State Patrol is the state police force for the state of Wisconsin. It serves a population of 5.6 million mainly through traffic safety and enforcement on the state highways.-History:...
were unable to cross state lines into Illinois.
Assembly Republicans began procedures to move the bill to a vote on February 22. Hundreds of constituents had signed up to give testimony while Democrats submitted dozens of amendments and conducted speeches, all which delayed the vote. At 1:00 a.m. on February 25, following sixty hours of debate, the final amendments had been defeated and the Republican leadership of the Wisconsin State Assembly cut off debate as well as the public hearing and moved quickly to pass the budget repair bill in a sudden vote. The vote was 51 in favor and 17 opposed, with 28 representatives not voting. The final vote took place without warning, and the time allowed for voting was so short (lasting only 5–15 seconds) that less than half of the Democratic representatives were able to vote; reportedly, many were pushing the voting button as hard as possible but it didn't register. Four Republican representatives voted against the bill.
On February 27, it was reported by the media that Republican State Senator Dale Schultz
Dale Schultz
Dale W. Schultz is a Republican member of the Wisconsin Senate, representing the 17th District since a special election in 1991. He was previously a member of the Wisconsin State Assembly from 1982 through 1991.-Background:...
would not vote for the bill. However, Schultz refused to let his intentions be known regarding the bill; he had previously attempted a compromise budget plan which was rejected by Governor Walker. Schultz got up during a Senate session to propose his amendment, but instead took his missing colleagues to task, stating that he couldn't propose it because they weren't there.
On March 9, Wisconsin Republicans held a joint Assembly-Senate committee meeting to discuss quorum requirements for the union stripping bill. The meeting was only announced two hours in advance of its start. The Senate requires a quorum to take up any measures that spend money, however by removing parts of the bill related to money, they had discovered a way to bypass the chamber's missing Democrats. After the meeting, the Senate passed the legislation 18-1. Wisconsin Senator Dale Schultz
Dale Schultz
Dale W. Schultz is a Republican member of the Wisconsin Senate, representing the 17th District since a special election in 1991. He was previously a member of the Wisconsin State Assembly from 1982 through 1991.-Background:...
was the only Republican to vote "no".
On Thursday, March 10, the Wisconsin Assembly passed the collective bargaining bill with a vote of 53–42. Protesters screamed "shame!" as the Republicans quickly filed out of the building.
On March 11, Governor Walker signed the bill and put out a statement rescinding layoff notices for 1,500 public workers. He said the bill's passage "helped us save 1,500 middle-class jobs by moving forward this week with the budget repair. The state will now be able to realize $30 million in savings to balance the budget and allow 1,500 state employees to keep their jobs."
On March 12, the fourteen Democratic senators who had left the state returned and were met by crowds of 85,000 to 185,000, the largest crowds yet of the four weeks of protests. Teachers, police, firefighters, nurses, and students were joined by farmers who paraded their farm vehicles around Capitol Square. One of the returning senators, Spencer Coggs
Spencer Coggs
G. Spencer Coggs is a Democratic Party of Wisconsin member of the Wisconsin State Senate, representing the 6th district since 2003.-Early life, education and career:...
, said that "[w]e are back to unite and fight with our supporters. We gave them hope. They gave us inspiration." In contrast, senate majority leader Scott Fitzgerald
Scott Fitzgerald
Scott Fitzgerald may refer to:*F. Scott Fitzgerald , American author*Scott L. Fitzgerald , member of the Wisconsin State Senate*Scott Fitzgerald , former Wimbledon defender, former manager of Brentford...
said that the returning senators were "the most shameful 14 people in the state of Wisconsin[...]an absolute insult to the hundreds of thousands of Wisconsinites who are struggling to find a job, much less one they can run away from and go down to Illinois."
On March 14, the Republican Senate President, Scott Fitzgerald, announced that despite returning, none of the Senate Democrats would be allowed to vote in committee because they were in contempt of the Senate. However, the next day, Fitzgerald said the contempt finding and fines would be lifted.
Legal challenges
In response, Dane County Executive Kathleen Falk filed suit against the state regarding the bill, in the grounds that it was unconstitutionally passed because the budget repair bill contained fiscal provisions. Judge Amy Smith recused herself from hearing the case, which was instead heard by Judge Maryann Sumi. A second lawsuit was filed against the state on similar grounds on March 16 by Dane County District Attorney Ismael Ozanne.On March 18, Judge Sumi issued a stay on the bill because it had been passed without the required the 24 hours' notice to inform the public of the meeting. Attorney General J. B. Van Hollen
J. B. Van Hollen
John Byron "J.B." Van Hollen is the Attorney General of the State of Wisconsin. A Republican, he was elected to the office in November 2006 and took office on January 3, 2007, succeeding Democrat Peg Lautenschlager.-Background:...
then announced he was appealing the ruling. Despite this, on March 25, the Legislative Reference Bureau bypassed the Secretary of State's office and published the collective bargaining law, with Republicans saying it is law and they would enforce it. On March 29, Judge Sumi reiterated that the bill had not become law regardless of the entity which published it, and public officials who attempted to enforce it risked legal sanctions.
However, on June 14, the State Supreme court
Wisconsin Supreme Court
The Wisconsin Supreme Court is the highest appellate court in the state of Wisconsin. The Supreme Court has jurisdiction over original actions, appeals from lower courts, and regulation or administration of the practice of law in Wisconsin.-Location:...
overruled Sumi, declaring that the law was passed legally and was fully constitutional, as well as adding that Sumi had overstepped her jurisdiction.
District savings
There has been some early evidence of how the budget repair bill is working since it became effective on June 29, 2011. In KaukaunaKaukauna, Wisconsin
Kaukauna is a city in Outagamie County, Wisconsin, United States, on the Fox River, approximately 100 miles north of Milwaukee, with a population of 12,983. It is a part of the Appleton, Wisconsin Metropolitan Statistical Area, which is included in the Appleton-Oshkosh-Neenah, Wisconsin Combined...
, school officials put in place new policies they estimate will turn a $400,000 deficit into a $1.5 million surplus. In April 2011, the union had offered healthcare and pension concessions as well as a wage freeze, which it projected would save $1.8 million, but the offer was rejected by the school board. "The monetary part of it is not the entire issue," said board President Todd Arnoldussen. "It was in the collective bargaining agreement that we could only negotiate with them," said Arnoldussen referring to the past, when Kaukauna's agreement with the teachers union required the school district to purchase health insurance coverage from WEA Trust - a company created by the Wisconsin teachers union. This year, the trust told Kaukauna that it would face a significant increase in premiums. With the collective bargaining agreement gone, the school district is free to shop around for coverage. Kaukauna can reduce the size of its classes - from 31 students to 26 students in high school and from 26 students to 23 students in elementary school. In addition, there will be more teacher time for one-on-one sessions with troubled students. Those changes would not have been possible without the changes in collective bargaining. The money saved will be used to hire a few more teachers and institute merit pay.
The city of Milwaukee projects it will save at least $25 million a year and possibly as much as $36 million in 2012 from health care benefit changes due to not having to negotiate with unions. This is offset by about $14 million in cuts in state aid. This contrasts with Mayor Tom Barrett's initial comments in March, after the Walker administration and the nonpartisan Legislative Fiscal Bureau released figures on the extent of the aid cuts in the state budget.
Reductions in state aid
The budget repair law reduced state aid to K-12 school districts by about $900 million over the next two years. 410 of Wisconsin's 424 districts will get about 10 percent less aid than the previous year. The biggest losses in dollar amounts will occur in the MilwaukeeMilwaukee Public Schools
Milwaukee Public Schools is the largest school district in Wisconsin. As of 2007, it had an enrollment of 87,360 students, and as of 2006 employed 6,100 full-time and substitute teachers in 223 schools. The Milwaukee Public Schools system is the 33rd largest in the United States by enrollment...
, Racine
Racine Unified School District
Racine Unified School District is a school district that serves a area in eastern Racine County, Wisconsin. It has 35 schools and a student population of approximately 21,000, serving six nearby towns and cities...
and Green Bay
Green Bay, Wisconsin
Green Bay is a city in and the county seat of Brown County in the U.S. state of Wisconsin, located at the head of Green Bay, a sub-basin of Lake Michigan, at the mouth of the Fox River. It has an elevation of above sea level and is located north of Milwaukee. As of the 2010 United States Census,...
districts; Milwaukee will lose $54.6 million, Racine $13.1 million and Green Bay $8.8 million. State aid to schools is computed by a complex formula based on property values, student enrollment and other factors. Property-poor districts get more aid than property-rich districts because they have lower property taxes. A provision in the budget repair law restricts the options of what districts can collect in property taxes and other revenue by requiring a referendum to prevent them from trying to replace their losses in state aid without first going to the citizens of the district. In Milwaukee, district officials announced they have eliminated 514 vacant positions and laid off almost 520 employees, including 354 teachers, mostly from elementary schools, which will result in larger class sizes. The Milwaukee School Board asked its teachers union for a side agreement requiring teachers to contribute 5.8% of their pay toward pensions, as the teachers union contract extends through 2013. The pension contribution would have saved about $20 million and 200 jobs, however the union rejected the concession. The Racine district has saved about $18 million from a wage freeze and larger employee contributions to pensions and health care, but the loss of state aid still required the elimination of 125 positions (although a larger than usual number of retirements and resignations and soon-to-be eliminated positions which are already vacant means the district will actual only need to lay off 60 employees) and the closing of all but one swimming pool for the summer. The Green Bay district also froze wages and required greater employee contributions to pensions and health care, but the district has stopped filling vacancies and may have to combine elementary grades into single classrooms. Nearly 70% of state school districts will be eligible for special adjustment aid, largely because of the decrease in the state's share of support. The special adjustment aid is intended to provide school districts with 90% of the state general aid from the previous year.
Effect on unions
Since teachers' unions are no longer able to automatically deduct dues from teachers' paychecks because of the new budget repair law, unions are using a variety of methods including using a combination of meetings, emails, phone calls and home visits to get teachers signed up for dues collection. Some school districts are primarily signing members up for electronic funds transfers so they can deduct money monthly. The latest IRSInternal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
filing available shows that WEAC collected about $23.5 million in membership dues in fiscal year 2009 from its approximately 98,000 members. Most of the membership dues go to pay salaries and benefits. The organization employed 151 people and paid them $14,382,812 which is an average compensation total of $95,250 per employee. This figure includes not only professional staff, but also lost wages paid to union bargaining team members, officers, and delegates to conventions.
The Wisconsin Education Association Council (WEAC), announced they would lay off about 40% of its workforce. The layoffs and budget cuts are based on a projected loss of revenue as a result of the budget repair legislation.
The UW-Madison teaching assistant union, which was at the forefront of the protests against the new budget repair law, voted to decertify their union in August, 2011. Union leaders for state and local government workers said they also are leaning toward not recertifying. The Wisconsin Education Association Council, the state's largest teachers union, is the only state union to date that has indicated it plans to seek official union status with the state.
The Wisconsin Education Association Council (WEAC) announced it would allow local union affiliates to possibly drop certification and that the agency would accept whatever the local unions chose.
"Double dipping" controversy
According to a report by radio talk show host Mark BellingMark Belling
Mark Belling is a conservative radio talk show host for 1130 WISN in Milwaukee, Wisconsin.Belling hosts a three-hour weekday radio program, The Mark Belling Late Afternoon Show, which is regularly rated No. 1 for the afternoon-drive time slot...
, Tom Maki, the Vice Chancellor for Business and Finance retired in March 2011 due to the reforms proposed in the budget repair legislation. In April 2011, the Vice Chancellor was re-hired without a search and screen process. He returned to his previous salary of $131,000. This permits him to collect both his state pension payments and his salary. State Representative Stephen Nass
Stephen Nass
Stephen L. Nass is a Wisconsin politician and legislator.Born in Whitewater, Wisconsin, Nass graduated from Whitewater High School before receiving a B.S. from the University of Wisconsin–Whitewater in 1978. He also received a M.S.Ed...
(R-Whitewater), Chairman of the Assembly Colleges and Universities Committee, expressed outrage at the report that the Vice Chancellor is being allowed to "double dip" by retiring and then being re-hired for his position. Mr. Nass announced that he would cancel a public hearing on a bill supported by UW-Green Bay that would allow it and two other campuses to adopt a differential tuition system despite the current tuition cap. He also wants to determine if any state laws and UW System hiring rules were violated in this arrangement between the Vice Chancellor and Chancellor Thomas Harden as well as a request that the UW System conduct a review of all campuses to determine how many of these arrangements have been authorized since February. State law prohibits agencies from making an arrangement to rehire someone who is planning to retire before that person leaves. About 1,100 retirees were rehired in 2011. Tom Maki will resign from the vice chancellorship in December 2011. In October 2011, it was discovered that another UW-Green Bay administrator (Timothy Sewall) retired in March and returned to his $110,000-a-year position a month later, collecting both his salary and about $44,000 in annual retirement payments.