FOR IMMEDIATE RELEASE CONTACT: Senator Pam Galloway

February 25, 2011 (608) 266-2502

Budget Repair Bill

Governor Walker has introduced his budget repair bill to address the $136.7 million budget shortfall that Wisconsin faces in the current fiscal year, ending June 30^th. As we look to the future, over the next two years, Wisconsin faces a biennial budget deficit of $3.6 billion; the State of Wisconsin is in a budget crisis.  Gone are the days of relying on the use of short-term fixes such as segregated fund raids and increases in taxes and fees.  In short, both parties kept running up the credit card bill and now that credit card is maxed out.

Over the past few weeks, there have been many visitors to my offices, both in Madison and in Wausau.  My office has been inundated with phone calls and emails from constituents and people all over the world on both sides of this matter.  To those who have not yet received a response or could not get through to my office, I apologize, we are doing the best that we can to respond to you.

When I ran for the State Senate, I did so knowing full well that difficult decisions for Wisconsin’s future were ahead. I know there will be many pieces of legislation before me that will not be perfect.  The budget repair bill is not perfect, but I believe that it takes the necessary steps to address Wisconsin’s fiscal issues and preserve jobs. Without passage of this budget repair bill, the state will face layoffs, as many as 1,500 public sector workers could be affected and as many as 5,000 in the next budget.  It is written into our state constitution that we cannot run a deficit. If we fail to act now, the state will run out of money in the Medical Assistance program, the Public Defender’s Office and the Corrections Department. The state’s looming Medical Assistance deficit, if not addressed, could lead to the elimination of services for the thousands of children and families in Wisconsin’s BadgerCare program as well as additional programs that service Wisconsin’s elderly and disabled.  Due to past raids on segregated funds, the state now owes $200 million to the Injured Patients and Compensation Fund.  Wisconsin also owes the state of Minnesota almost $60 million in reciprocity payments.  Setting aside the $200 million owed to the Injured Patients and Compensation Fund and the $65 million in funds the state is required to carry, we are still more than $136 million in debt for this year alone.

In response to the chorus of misinformation, rhetoric and rumors that are being perpetuated by some, let’s focus on what is NOT included in this budget. This budget repair bill includes NO tax hikes, NO furloughs and NO job cuts. There are no service cuts.  There are no changes to civil service, vacation or sick leave policy.  Last, but not least, unions will still exist.

Limitations on collective bargaining for public employees unions were placed in the bill because Wisconsin’s fiscal crisis demands it.  Wisconsin has nearly 2,000 units of local governments and 440 local school districts - collective bargaining for benefits and work rules has a fiscal impact on all these levels of government.  For example, many school districts are forced to participate in WEA Trust (the health insurance company owned by the Wisconsin Education Association Council (WEAC) – Wisconsin’s largest teacher’s union) because WEAC has collectively bargained for it.  If these same school districts had the flexibility to look outside of WEA Trust, additional savings could be realized.  With the state facing a deficit of $3.6 billion, we need to give our local governments and school boards the tools they need in dealing with anticipated budget cuts.

As for those who are concerned about losing workplace protections, Wisconsin has long had one of the strongest civil service protection systems in the country.  As a result of this bill, workers at the local level, including teachers, will now be part of Wisconsin’s civil service system.  State and local employees, who have civil service protections for grievances and discipline matters, will retain those privileges.  Public workers, who did not have these protections, now will.  Progressive discipline will exist and just cause will still be required for termination.

In closing, Wisconsin’s budget crisis is not a problem that can be ignored any longer. The state is broke and Wisconsin can no longer rely on quick fixes and tax hikes.  The time has come for Wisconsin to face reality:  the bills are coming due and we need to pay them.

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