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wsj op/ed: Voters Want State Gov Reform

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  • wsj op/ed: Voters Want State Gov Reform

    hey - now maybe we're getting somewhere....

    this sums things up, i suspect, for lots of people, on BOTH sides of the aisle
    and when its coming from a dem? seems like maybe WE can start to address the issues of TAX vs SPEND?
    (or at least the issue of .gov-union headcounts and benefit costs)

    also quite interesting, considering some of the states where polling was done:


    Mr. Schoen, who served as a pollster for President Bill Clinton, is author of "Hopelessly Divided: The New Crisis in American Politics and What It Means for 2012 and Beyond."(Rowman and Littlefield, 2012). The national survey discussed in this op-ed was conducted on Aug. 5-10. The states individually surveyed on Aug. 29-Sept. 5 were Florida, Illinois, Indiana, Michigan, Montana, North Carolina, New York, Ohio, Pennsylvania and Wisconsin. All surveys were conducted for the Manhattan Institute.

    http://online.wsj.com/article/SB1000...428610454.html

    Voters Want State Government Reform

    Polling in 10 states shows that Americans want politicians to cut spending and reduce public employee benefits before they raise taxes.


    By DOUGLAS E. SCHOEN

    Americans believe that bold action to restrict spending is necessary to stabilize the finances of state government.

    Last month, in a wide-ranging national survey of 1,000 randomly selected, registered voters, and in 10 polls in individual states each with 400 respondents, my polling company found that voters strongly favor measures to pare the compensation of current and future public employees. They strongly oppose higher taxes.

    Specifically, over three-quarters (78%) say their state faced a budget crisis this year, and 68% say that the crisis was resolved with spending cuts. Overwhelmingly they blame politicians for creating and exacerbating the problems: 48% say "elected state officials made careless and self-serving decisions," while only 6% say "state governments did not tax enough."

    The top priorities for resolving current fiscal issues are to cut government spending (47%) and to ask for greater sacrifice from current public employees, by having them contribute more towards their benefits (31%). By almost two-to-one, they think that current public employees should have to contribute more toward their pension benefits because of budget problems.

    A majority (51%) say they would not be willing to cut "social service programs provided by your state" to maintain the compensation of public employees; and 60% say that "education and health care" should not be cut so that "the salaries and benefits of public employees could be paid at current levels."
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    Further, by 48% to 40%, voters say that public employees' salaries should be "frozen," and they should be required to contribute more towards their benefits when states face the type of crises they are now facing. Close to two-thirds (64%) say they would not be willing to have their taxes raised as a means of keeping salaries and benefits of current employees at current levels.

    However, there is a clear distinction in voters' minds between what current public employees should be asked to contribute and what retired public employees should be asked to contribute. Sixty-nine percent say retirees should "not have to" contribute more towards their health-care benefits or take a reduced pension because of state and local government budget problems.

    A majority (56%) supports reducing certain state services to address state budget crises if programs need to be cut. Voters are most inclined to cut libraries and parks services and least inclined to cut education, health care, police and fire protection. However, a whopping 60% of voters oppose "increasing state sales, income or other taxes" to reduce budget deficits.

    While there is a clear sense that cutting spending and reducing salaries and benefits will result in fiscal stability for state governments, there is no similar linkage between reforming the collective bargaining process and achieving fiscal well-being for individual state governments.

    Put simply, the voters don't see a connection between the two.

    Collective bargaining is not overwhelmingly popular in the abstract. A majority (50%) agrees that "public employees should not bargain collectively and use union power to limit or delay the delivery of important government services." Moreover, 60% of voters feel that collective bargaining is a benefit "and can be changed and negotiated based on economic circumstances," while 30% see it as "essential" and "a basic right of labor." In the recent "disputes between state governments and public unions over collective bargaining," voters side with state officials by 46% to 39%.

    However, this skepticism towards collective bargaining does not translate directly into support for the steps that Governors Scott Walker of Wisconsin and John Kasich of Ohio took in their individual jurisdictions.

    Nationally, the Wisconsin law to restrict public employee collective bargaining rights was opposed 49% to 45%, and the similar Ohio legislation was opposed by 45% to 40%. In the states, there was similar opposition. Wisconsin voters oppose Mr. Walker's measure, 52% to 45%, and Ohio voters oppose Mr. Kasich's measure, 52% to 43%.

    Yet the reason for this apparent movement against collective bargaining reform is that unlike reducing state spending and benefits, voters nationally and in those two states are not convinced that clear savings will result from reforming the labor relations process. By 56% to 33%, voters nationally say "it is unclear how much money will actually be saved by limiting" collective bargaining rights.

    Voters also reject the notion that reforming collective bargaining will make government more efficient in each of these two states. A solid majority (55%) rejects that notion in Wisconsin, and a 45% to 41% plurality in Ohio rejects this notion as well. By large margins in both states—59% to 17% in Ohio and 43% to 28% in Wisconsin—voters say it is more important to reform public employee salaries and benefits than it is to reform collective bargaining.

    On other measures that restrict current public employee rights and benefits, voters say that tenure for teachers should be phased out, 56% to 39%. Fundamental reform of public sector pension plans is strongly favored. Voters support "moving all new public employees from a defined benefit plan to a defined contribution plan" by 69% to 17%.

    One of the reasons voters feel so strongly about reducing the level of compensation for state employees is that they believe that they are earning disproportionately high wages relative to those in the private sector.

    There is a clear belief that public employees are better compensated than those in the private sector: 41% of voters think "the salaries and benefits of most public employees are too high for the work they do," while 32% think they're "about right" and 13% think they're "too low."

    Voters also think that while public sector workers generally can retire with full benefits at about age 57 years old, this is too early. Generally they say the normal retirement age should be 65.

    It is clear that American voters endorse a very specific agenda to reduce spending, pare back employee benefits, and hold the line on taxes wherever and whenever possible. The electorate clearly shows sympathy with the concept of limiting collective bargaining rights, but so far has not seen or come to accept the direct linkage between restricting that benefit and assuring the ongoing fiscal well-being of their state.
    it also seems clear that he seems to think its a 'PR problem' for the unions and that the answer to that is, what - more pro gov-union propaganda?
    Last edited by lektrode; September 19, 2011, 07:25 PM.

  • #2
    Re: wsj op/ed: Voters Want State Gov Reform

    Civil service used to be the back up job to a "real" career. Or, you actually wanted to contribute to society's well-being.
    Now, it is a simple paycheck, and it is larger than those of us who actually have to work outside the bubble. I do not think they should have any rights restricted, including the right to collectively bargain. However, our rights to hire new people to replace anybody who is on strike should also not be violated. In other words, I can guarantee you we can find a competent worker to replace ANY state worker for half the cost. Do they realize how many people are out of work?

    To me it is simple budgeting. If taxes come in at 50% previous levels, you either do across-the-board cuts of 50%, or you fire half the people.

    We are not talking about Chinese slave labor here, either; it will be one American willing to work harder than another.

    Comment


    • #3
      Re: wsj op/ed: Voters Want State Gov Reform

      Originally posted by aaron View Post
      I can guarantee you we can find a competent worker to replace ANY state worker for half the cost.
      Here comes more sensationalist drivel. Let's divide the middle class and let it eat itself while FIRE makes away with the bank. That will work well...

      Look. For some functions - the lower-skilled ones - you are probably correct. What about complicated jobs that require a lot of investment and education, though?

      How many lawyers (JD and passed the bar) will work for half of $50k/year (prosecutors, not just public defenders)? How many power engineers can you get to work for half? Highway engineers? Funds managers managing multi-billion dollar portfolios? Do you really think you can take anyone off the street and have them deal with these sorts of issues for $12-15 bucks an hour?

      There is room for efficiency games and reform (read laying people off) in local and state government, sure.

      You could probably chop police and teacher salaries in half, end overtime, and pay people $20-$30k/year to do those jobs. I wonder to what end, though.

      If you spent half the energy you spend seething at public workers, you could work towards setting your state government straight with fact-based analysis based on existing systems that work. The bullhorn is already out and after the pensions and workers and unions. It needs no help from you.

      The feudalists spend millions on talking heads and news outlets to get private sector workers to hate public sector workers and visa-versa. They are doing a damn good job of it too. We can be civilized and educated enough here at the 'Tulip to look for solutions that are outside of that mainstream discourse of 'taxpayer' vs 'union.' Rush and Maddow already do that for you.

      You could help by actually looking at the problems that face states, though.

      Were you to take up such an endeavor, you would quickly discover that salaries and pensions pale in comparison to other structural costs in state government. If you don't like taxes, your efforts would be better spent on reigning in Medicaid.



      There is room for restructuring - taking lessons from states with low taxes and injecting those lessons into the institutions of a high-tax state.

      To be more specific, FL was in the study. It is sort of a middle-of-the-road state, and it also has an older population (more health costs shifted to federal sources on medicare than on medicaid).



      By far the largest expenditure it has is Medicaid. You can cut all of the salaries in half, loose some good people in the process (unless you actually believe that all government employees are evil) and you will not have made a dent.

      Now look at a low-tax state like NH:



      Medicaid is STILL the overwhelming plurality of spending. NH even games it with the Federal government and hospitals in ways I have mentioned in previous posts.

      So what is the problem? Why are there fewer taxes in NH?

      One has to look at the REVENUE side (not just spending, believe it or not!)



      There's NH, now look at FL:



      What is the lesson here?

      I will tell you:
      1. State governments that apply taxes with high frictional cost (taxes that require a lot of administrative overhead to apply and enforce) tend to collect less and infuriate people more than states that apply low frictional taxes (like NH with the business tax).

      2. Businesses do not flock away from NH despite the high business tax rate. This is likely because the owners and executives of businesses get to keep more of their money on the personal income side and regulation is fairly relaxed and straightforward. Businesses also don't have to waste a lot of money programming registers for varying sales taxes and adjusting payrolls for crazy income taxes.

      3. Which leads to this postulate: Low friction is worth higher overhead. Land taxes are preferable to income and sales taxes because they are collected less-frequently and thus tend to have less associated friction. Also, they are more progressive in nature than sales and use taxes.

      4. The additional costs of corporate taxes are not passed onto the customer in many circumstances because the U.S. rarely makes anything anymore. This means that NH - surrounded by states with 6% sales taxes and 30 cent gasoline taxes - contains thousands of border employees who can sell items at retail for less than any of their competition in neighboring states. It wins the comparative advantage game.

      5. Diversified tax sources tend to perform better in down economies than systems like FL, which rely heavily on sales taxes, or systems like CA, which rely heavily on income taxes in the higher brackets.


      So there is one model, anyways, that looks at how one can lower taxes and deal with government less often without having to lay off thousands or cut their pay and thrust them into the unemployment lines and foreclosure processes. There are more.

      Let's try to find these solutions before we go down pundit road. It's truly a vain and useless exercise.

      Comment


      • #4
        Re: wsj op/ed: Voters Want State Gov Reform

        +1 Thank you for bringing a dose of reality to this discussion!

        Comment


        • #5
          Re: wsj op/ed: Voters Want State Gov Reform

          Originally posted by ltullos View Post
          +1 Thank you for bringing a dose of reality to this discussion!
          +1
          as i think dc is an Excellent Teacher/Educator and he brings both sides of the argument to the table for discussion.

          eye never fail to achieve better understanding of the issues when he does his typically in-depth rebuttal to whatever the opposing viewpoint on the issues surrouding the states budget problems, in particular... (even tho we may not agree 100%, at least he makes us/me think more critically, so another +1 for that)

          wish i'd had him for a teacher, quite frankly.

          now if we could get him to slice up some of those other states in the poll, _that_ would likely be Quite the eye opener, eh dc?

          Comment


          • #6
            Re: wsj op/ed: Voters Want State Gov Reform

            half the energy you spend seething at public workers
            One paragraph is not seething. I was addressing the comment about public unions as well as the article. You are coming up with (albeit good) ideas; not the topic of the article.

            I can guarantee you we can find a competent worker to replace ANY state worker for half the cost.
            I was being sensationalist. Of course I cannot guarantee that. But, I bet it is true.
            You really think there is not an unemployed engineer (even one in in their 60s or 70s) or accountant, or 1 of the trillion U.S. lawyers, who would not willingly perform a government function? Maybe they may even want to help their community.When you have over a million people line up for 50K McJobs, I see a labor market itching to knock off a few highly paid folks. Again, if they were being paid a fair (fair in our crappy system) wage, they would not need to collectively bargain. CIVIL SERVICE, not guaranteed lifetime income.

            In reality, the public union jobs are the only ones that have kept up with inflation. But, the rest of us have not. It is not fair. It is even worse that I should be taxed for the inequity. I would much rather all of our wages go up. But, since that is not likely to happen, I refuse to pay more so other people do not have to work. I am taxed enough.

            At some point enough is enough. We all feel entitled to "get ours". The problem with a government worker is that to get "ours" you must take away from somebody else. If we raise taxes to pay for your benefits, you are taking away from MY retirement to pay for your retirement. ("your" is generic, not pointed at anybody please)

            but, you are absolutely right, there is certainly no lack of solutions. There is, in my opinion, a lack of will up and down the government workforce for change.

            Comment


            • #7
              Re: wsj op/ed: Voters Want State Gov Reform

              Originally posted by aaron View Post
              but, you are absolutely right, there is certainly no lack of solutions. There is, in my opinion, a lack of will up and down the government workforce for change.
              IMHO, its not the lack of will on the part of 'the workforce', as i dont think the problem lies with the line-employees, altho they are certanly part of it - the Real Problem is the lack of will/backbone on the part of the political aristocracy, who are afraid/unwilling to risk offending practically _any_ razor-thin sliver of the electorate, lest they risk losing an election.

              in short, what we have at the top are a bunch of people who are more afraid of losing their elected and/or appointed office than they are afraid of the implications of their lack of will to address effectively the issues, who instead sidestep and can-kick any way they have to, for reelection = why term limits have to be part of The Solution

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