ONTD Political

The hit for state workers in Wisconsin

4:58 pm - 10/09/2011
Six months after Gov. Scott Walker and Republican legislators required state workers to pay more for health care and pensions, what are those changes costing those workers?

Depending on their pay, between $2,828 and $8,428 more a year, according to a recent Legislative Fiscal Bureau report requested by three Madison-area legislators who each represent thousands of state workers.

The same controversial bill that ended the ability of public employee unions (except firefighters and police unions) to collectively bargain for anything except cost-of-living wage increases said state workers must pay 5.8% of earnings for their pensions and 12.6% of health care costs.

For a full-time state worker buying family health care coverage, the Fiscal Bureau report said those changes meant:

 $25,000-a-year worker: $2,828 more. This worker had been paying $1,118 (4.5% of salary) toward health care and pension, but that went up to $3,946 (15.8% of salary).

The $3,946 breaks down this way: $2,496 for health care and $1,450 for pension. Last year, the same worker paid $50 toward his or her pension and $1,068 for health care.

 $50,000-a-year worker: $4,228 more. The employee had been paying $1,168 (2.3% of salary) for health care and pension benefits, but that is now $5,396 (10.8% of salary).

The $5,396 breaks down this way: $2,900 for his or her pension and $2,496 for health care. Last year, the employee paid $100 for pension and $1,068 for health care.

 $100,000-a-year worker: $7,028 more. This worker had been paying $1,268 (1.3% of salary) for health care and pension benefits, but that went up to $8,296 (8.3% of salary).

The $8,296 breaks down this way: $5,800 toward his or her pension and $2,496 for health care. Last year, the employee paid $200 for pension and $1,068 for health care.

 $125,000-a-year worker: $8,428 more. This worker had been paying $1,318 (1.1% of salary) for health care and pension, but that went up to $9,746 (7.8% of salary).

The $9,746 breaks down this way: $7,250 toward pension and $2,496 for health care. Last year, the employee paid $250 for pension and $1,068 for health care.

Only about 200 workers in state agencies make $125,000 or more - or 0.5% of about 37,500 full-time workers in the executive branch of government. Those numbers do not include the University of Wisconsin System or UW Hospitals and Clinics.

Here's why all these changes are unfair, according to Democratic Reps. Brett Hulsey, Terese Berceau and Chris Taylor, all of Madison: The impact of higher contributions was an 11.3% pay cut for the $25,000-a-year worker, but only 6.7% for the worker making $125,000

Their math: $25,000-a-year workers went from paying 4.5% of their pay for benefits to 15.8%, or an increase of 11.3 percentage points. But the $125,000-a-year workers went from paying 1.1% of their salary to 7.8%, or an increase of 6.7 percentage points.

Walker and Republicans who control the Legislature "are reverse Robin Hoods," Hulsey said.

"It's completely inequitable that a middle-class worker making $25,000 a year takes almost twice the effective pay cut of an employee making $125,000," added Berceau.

Although the three Democrats vowed to "explore options" on how to fix that injustice, there is no chance the Republican-controlled Legislature will revisit this controversial subject.

Besides, lawmakers already took one step toward softening - slightly - the higher contributions by state workers for pensions and health care.

Buried in the 2011-'13 state budget is this provision: State workers' contributions for health care and pensions will be treated as pretax payroll deductions.

That change saved state workers about $15 million a year, a state Department of Administration official estimated. That's a small percentage of how much more they are paying for those benefits, however.

These numbers will add to the raging statewide controversy between what Walker has called the "haves" and "have-nots."

The governor said public employees were the "haves" who had a sweetheart deal, when it came to fringe benefits, for much too long - especially given the cuts in contributions to health care and pensions that private businesses have been implementing over the last several years. Private workers were the "have-nots" who were unfairly subsidizing the fringe benefits of public employees, Walker said.

The controversy is why Walker's opponents have Nov. 4 circled on their calendars. That's the first day they can file paperwork required to start a drive to recall Walker.

source
[info]romp 10th-Oct-2011 05:54 am (UTC)
And where's the money coming from? What was being purchased--childcare, organic food, a second car, movie tickets--that is no longer? And how does this help the Wisconsin economy?

I don't know what I'd do if I had to come up with $2800/yr.
[info]phamos818 10th-Oct-2011 01:14 pm (UTC)
Yup! For all their talk about supporting small business owners, all the small business owners I know would rather have customers with disposable income to spend than some indeterminate tax cuts. But then again, this is Madison, so obviously all the small business owners I know are dirty hippies.
[info]thelilyqueen 10th-Oct-2011 04:17 pm (UTC)
I might, might, be able to manage it but I don't have the obligations a lot of people do. No kids, and my parents are both in good health and not likely to need assistance from me anytime soon.
[info]lilyginny27 10th-Oct-2011 08:24 pm (UTC)
Hubs and I are both state employees in WI. Since we're only hit once for health insurance, that helps, but we still averaged out to a 14% paycut together.

Things we are no longer spending money on:
$40 less a week on groceries.
Movies/Entertainment - ain't happening, not even a 2D matinee. We've taken to trading dvd's with friends.
Unnecessary trips - Walker will be happy to know we no longer drive the hour to Madison to protest because we can't afford the gas to get there and back.

We reduced cable, internet and phone by switching and bundling. However, Hubs has some major medical issues; since we now have to pay for doctor visits starting in January, these will all probably be reduced, too. I've already stopped taking my medications in hopes of weening myself off them entirely.

We are no longer trying to have children.

We already depleted our savings paying off car/student loans over the summer so we wouldn't have those to deal with on top of the regular monthly bills of water/eletricity/gas. We're praying nothing breaks.

We've both picked up second jobs (or in my case, thirds), and I've taken in alterations since I can sew. All this extra work does is allow us to pay our mortgage and have enough for groceries that week as our mortgage (with insurance and taxes) now equals 55% of our monthly income. I'd rather have a roof over my head than food at this point. I just tell myself I need to go on a diet anyway.
[info]hauntermooneyes 10th-Oct-2011 11:43 pm (UTC)
I am so, so, so sorry that they've done this to you.
[info]nesmith 11th-Oct-2011 12:25 am (UTC)
That's what I pay on my car--breaks down to about 240 a month. I make about 25 grand a year--if I had to suddenly come up with that much more every month, I would be so screwed. Really brings it home what these folks are going to have to deal with. :-\
[info]shorofsky 10th-Oct-2011 06:03 am (UTC)
That is a completely horrible hike! How are these people supposed to be able to afford that? I am so tired of republicans making life more difficult for everybody except for the very wealthy.... The rest of us down on the floor are just expendable hands with no need for equality or even life. Makes me sick.
[info]____jonas 10th-Oct-2011 02:55 pm (UTC)
I wonder if they're trying to force out all the public employees so they can finally just privatize everything.
[info]hauntermooneyes 10th-Oct-2011 11:47 pm (UTC)
Both Mike Tate and United Wisconsin to Recall Walker emailed me today and told me that they'd be announcing the recall effort in the next two days. Tate is going on Ed Schultz's show tonight at 9PM Central to announce that the Democrats will begin collecting signatures on November 15th; United Wisconsin is holding a press release tomorrow to announce their date.

A new governor won't fix this, but it'll prevent any more bullshit like this from happening. Here's hoping that we can get the 540,000+ signatures and get Walker's ass out.

It's on, bbs.
[info]omgangiepants 11th-Oct-2011 03:58 am (UTC)
I'm not worried about the signatures, I'm worried about who we're gonna get to run against him.
[info]hauntermooneyes 11th-Oct-2011 04:01 am (UTC)
I've heard rumours that Erpenbach is thinking of running...
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