Governor Scott Walker's reforms saving Wisconsin taxpayers money while services are running smoothly. Now the union bosses are really mad

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Public sector unions collect taxpayer money in the form of dues. The unions then use many millions from the dues to back certain politicians. It's simply a money-laundering scheme. If it's not, let them reduce dues to $10 per year instead of $1100.

Winter 2012, "It’s Working in Walker’s Wisconsin," City-Journal.org, C. Schneider

"The unions’ battle against Walker’s reforms has rested on the argument that the changes would damage public services beyond repair. The truth, however, is that the reforms not only are saving money already; they’re doing so with little disruption to services. In early August, noticing the trend, the Milwaukee Journal-Sentinel reported that Milwaukee would save more in health-care and pension costs than it would lose in state aid, leaving the city $11 million ahead in 2012—despite Mayor Tom Barrett’s prediction in March that Walker’s budget “makes our structural deficit explode.”...

Back in 1959, Wisconsin became the first state to let public employees unionize. The unions spent the next half-century productively, generating lavish benefits for their members. By the time Walker took office in 2011, the overwhelming majority of state and local government workers paid nothing toward the annual contributions to their pension accounts, which equaled roughly 10 percent of their salaries per year. The average employee also used just 6.2 percent of his salary on his health-insurance premium. Among Walker’s reforms, therefore, was requiring employees to start paying 5.8 percent of their salaries, on average, toward their pensions and to double their health-insurance payments to 12.4 percent of their salaries. These two changes, Walker estimated, would save local governments $724 million annually, letting him cut state aid to localities and reduce Wisconsin’s $3.6 billion biennial deficit....

What had the unions most up in arms, however, was a reform that ended mandatory dues for members. Wisconsin unions were collecting up to $1,100 per member per year in these obligatory payments, which they then spent on getting sympathetic politicians elected. In the last two elections, for instance, the state’s largest teachers’ union spent $3.6 million supporting candidates. Walker’s reform meant that government workers could now opt out of paying these dues—savings that could help offset those workers’ newly increased health and pension payments, the governor said. The unions knew that, given the option, many of their members would indeed choose not to write a check—and

• that this would strangle union election spending....

The collective-bargaining component of Walker’s plan has yielded especially large financial dividends for school districts. Before the reform, many districts’ annual union contracts required them to buy health insurance from WEA Trust, a nonprofit affiliated with the state’s largest teachers’ union. Once the reform limited collective bargaining to wage negotiations, districts could eliminate that requirement from their contracts and start bidding for health care on the open market. When the Appleton School District put its health-insurance contract up for bid, for instance, WEA Trust suddenly lowered its rates and promised to match any competitor’s price. Appleton will save $3 million during the current school year....

Over the summer, a sign surfaced that the public wasn’t as alarmed by the Walker agenda as the unions would have liked. ...

The manner in which the public unions ran the campaigns was telling. Because they realized that public-sector collective bargaining wasn’t the wedge issue that they’d expected, not a single union-backed ad mentioned it— even though it was the reason that the unions had mobilized for the recall elections in the first place. Instead, the union ads cried that Scott Walker had “cut $800 million from the state’s schools.” This was true, but the ads neglected to mention that the governor’s increased health-care and pension-contribution requirements made up for those funds, just as Walker had planned. That the unions poured nearly $20 million into the races, by the way, validated another argument of Walker’s: that mandatory dues are a conduit through which taxpayer money gets transferred to public-sector unions, which use it to elect Democrats, who then negotiate favorable contracts with the unions. In this case, the newly strapped Wisconsin unions had to rely heavily on contributions from unions in other states. In the end, Republicans held four of the six seats and retained control of the Senate. Democrats nevertheless bragged about defeating two incumbents, but that achievement was more modest than it appeared. One of the Republican incumbents was in a district that Barack Obama had won by 18 points in 2008. The other losing Republican had been plagued by personal problems relating to his 25-year-old mistress. Meanwhile, two of the challenged Republicans, Alberta Darling and Sheila Harsdorf, won more decisively than they had in 2008"....via Instapundit

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Ed. note: If Governor Walker finds himself with free time (via recall) in the next few months, how about "Walker for President?"

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