February 07, 2010
A Road to Serfdom (II)

"State's biggest expense is the hardest one to cut"

Wages and benefits for teachers and state workers make up 60 percent of the budget. Yet, even in the face of a $2.6 billion shortfall, it's unlikely that the Legislature will fire a big chunk of the state work force, or whack their salaries. Most employees are represented by unions, and Democrats, who control the Legislature and the governor's office, generally don't want to tick the unions off.
Yes, the vicious cycle of government employee unions winning permanent, inflexible and unsustainable entitlements for unionized employees, while recycling their mandatory dues into campaign contributions to politicians who further entrench the unions in government and politics. Ending this vicious cycle really has to be the #1 priority for those of us who wish to remain a people with a government and not the other way around.

Posted by Stefan Sharkansky at February 07, 2010 12:55 PM | Email This
Comments
1. This state's budget has doubled since 1981 after adjusting for inflation. Education spending has doubled well-exceeding population impacts. Never mind, though, that public schools now spend huge percentages of their funding on mainstreaming children with special needs at 3-4 times the cost of average students, but it's all lumped together so people don't see what is sucking Education funding away.

But let's really not look at the real culprit in this sad story of tax and spend - Social Spending. Over the same period it has tripled in Washington, no doubt a focus of politicians from both parties since every dollar spent on the Welfare State translates into votes.

By my count we're spending $9 billion more today on the Welfare state biennially than we would be if we had just doubled it like on Education and the total budget. But is anyone talking about cutting off voters who receive the handouts and demand more and more?

$9 billion would cover the deficits, and probably even cover the tricks and gimmicks Olympia has employed to make things look better than they really are. But does anyone honestly believe that the Dems in power would ever say no to their constituents? No, caught in between a taxpayer and tax recipient, Democrats will always side with the voter with the hand out.

Posted by: Reality on February 7, 2010 01:05 PM
2. Amen to this post. The vicious cycle described is not beneficial to the taxpayers or the efficient running of these govt. functions. But the unions/Democrats couldn't care less about that. they don't respect the citizens.

Posted by: Yosemite Sam on February 7, 2010 01:25 PM
3. Some day we may have "smaller government," but only because we can afford little more than payments to retired state and local government workers.

Posted by: Micajah on February 7, 2010 01:28 PM
4. Would y'all like to see a list of every State Employees TOTAL COMPENSATION?
That means not just salary..but also 31% for Benefits plus 18% for paid time-off.

This is what it's about. Runaway Union with there bought and paid for Governor and Legislature negotiating with them.
What a farce.

Need to get a ballot Initiative to privatize Labor & Industries, most of DOT, Ferry's

Now is the time Stefan

Posted by: dude on February 7, 2010 01:30 PM
5. Yes, the vicious cycle of big corporations getting subsidies, trade favors, and tax breaks, then plowing that money back into more lobbyists bribing more politicians into providing more goodies -- while the real wages and salaries of real workers falls, compared to the fat-cat corporate bosses. (The government goodies programs don't mandate the public wealth given to the privateers ever flow down; that would be socialism!) Government even pays for companies to move out of state or country. Reversing this public largess for private misbehavior must be the first step on our road back from corporate serfdom.

Posted by: tensor on February 7, 2010 03:52 PM
6. On the state level it's unions, and the negative effects of their greed are easy to illustrate. It's truly a tyranny of the minority -- government bureaucrats in communion with political leaders extracting, for both parties, the maximum possible benefits of power from a lazy populace.

A simple (but not easy) problem to solve. The more voters are aware, the less they'll be willingly complicit. Blogs like this, and bloggers like Stefan, make that possible. Few others seem willing.

But, my worry is that on the federal level, the situation much more difficult. The big government folks (by design) haven't endeavored to arrange a tyranny of the minority. By expanding benefits to large groups of disparate demographics (government employees, seniors, minorities, youth, the unemployed, the uneducated), they're seeking to cobble together a tyranny of the majority (50% +1, only 1). If they do it, the consequences for the other 49.9% is, shall we say, not so good.

When you read the federalist papers you see that this is, inherently, an inevitable problem with democracy, any democracy. They tried to implement safeguards. They worked for a few centuries, but now seem quite shaky.

Very illuminative to read up on Greece's trouble today. It's America's trouble tomorrow.

Posted by: AD on February 7, 2010 05:22 PM
7. Amen. I've always felt that it would be a total failure if I ever worked for the government.

At the very least, even those who do critical functions in government should be forced to use transit to get to and from their taxpayer funded jobs and to live with all of the other inefficiencies that the bureaucracies who employ them create.

We should start with the government employee unions and make it illegal for any public employees to unionize.

Posted by: Jeff B. on February 7, 2010 08:30 PM
8. you know what's hilarious?
conservative hypocrisy. where is the whining when the BIAW does the exact same thing? oh yeah, i forgot... rank hypocrisy is a plus for you guys.

also, dues aren't mandatory. none of our (libertarian) gov't employee friends pay their union dues. haven't for years.

This state's budget has doubled since 1981 after adjusting for inflation. you mean the underfunded 1981 recession budget? when even the Rs had to raise taxes by nearly 11% (and in doing so, lost control of the leg.)?!? you may not recall, but due to underfunding, the community colleges and UW were terrible - as were most other programs, also severely underfunded. but i'll be damned, those tax raises got WA out of the recession, and funding adjustments created a strong, educated workforce. also, the state has grown by 50% since then. i'm not seeing any problem with that. it's a hell of a lot better now than it was then. unemployment in WA was about 12%.

But let's really not look at the real culprit in this sad story of tax and spend - Social Spending.
if 2/3 of the state budget is state worker wages/benefits, how is social spending the 'real culprit'? i thought you were smaller, less effective goverment-types.

No, caught in between a taxpayer and tax recipient, Democrats will always side with the voter with the hand out.
and caught between a corporation and a citizen, a republican will always side with the corporation.

'dude' - you CAN see everyone's total compensation, and the average is far below 31% for Benefits plus 18% for paid time-off.
btw, PTO IS a benefit. and at 11 days per year, no one is getting 18%.

At the very least, even those who do critical functions in government should be forced to use transit to get to and from their taxpayer funded jobs
alot of them already do. but are you really saying cops or firemen shouldn't be allowed to own cars?

We should start with the government employee unions and make it illegal for any public employees to unionize.
have you always been against workers rights?

Posted by: mike on February 7, 2010 10:09 PM
9. Don't look to Gregoire for answers, she has less time to deal with this now that she's signed on to Barry's Council of Governors. Hmmm, Federal and State responsibilities... and probably a little extra pay to boot.

Posted by: carter on February 7, 2010 11:15 PM
10. As a one-time member of the SEIU, I can state that union membership is required if one is to hold a classified staff position at the UW.
If said person dislikes the policies of the union or dislikes union membership his/ her only options are to quit the job or become a dissenting member. As a dissenting member monthly dues paid to the union are reduced by approximately twenty or twenty-five percent but the employee loses his/ her right to vote on union elections. The SEIU then refers to the person as a "non-member" even though he/ she is paying a monthly "representation" fee to the SEIU union.
Its quite a racket.

Posted by: Attila on February 8, 2010 05:22 AM
11. Instead of whacking their wages, how about a 10% cut (probably about 1/2 the cut of the rest of us); I'd settle for a 5%

Posted by: swatter on February 8, 2010 09:02 AM
12. Pithy and succinct, Stefan. Glad to see you back with frequent posts on SP.

Posted by: Obama's Teleprompter on February 8, 2010 09:32 AM
13. @8 If you really don't understand the difference between the BIAW and a union, you really shouldn't be posting here.

Posted by: johnny on February 8, 2010 09:45 AM
14. Shark, once again you have it on the money. A quick look to the south gives us a real time example of where we are headed if we dont change course. California is that example.Public unions and enviromenntal groups have all but destroyed the economy and broken the budget. The same interests are running the show in Olympia. The cycle you described MUST be stopped or we will suffer the same fate.

Posted by: Rep. Cary Condotta on February 8, 2010 11:58 AM
15. I supported Rossi financially & on the phone; God, we didn't do enough.
Government corruption is rapidly approaching an unsustainable level.
Take a good look at Detroit; I fear it is the future for America.

Posted by: FreeMarketSteve on February 8, 2010 12:12 PM
16. As far as teachers are concerned, it's not so much the salary that is offensive as much as it is the benefits.

Recently, a local teacher who is at his retirement age had the school buy his prep period for one year - this added $400 per month to his retirement package and it really didn't cost the school much at all - they didn't have to buy another teacher to fill that spot and it is the state that is on the hook for the rest of his life.

We can fix the state finances by tackling it's benefits packages for state workers. Why do they get cadillac insurance plans? Maybe we should set up government workers by putting them in the VA plans. They only get full benefits if they use VA hospitals, otherwise the co-pays and deductibles double or triple if they use non-govt. run medical facilities. Do it nationwide, it might cost us a few billion to build more facilities but the savings would be huge. And retirement benefits? They give those away as if they are peanuts because it will be someone else's problem by the time they retire.

Posted by: Doug on February 8, 2010 01:13 PM
17. Bingo Doug. Government employees should get the lowest dregs of everything. Minimum VA health plans, required use of transit for getting to and from their jobs, etc. If we are funding their salaries, they shouldn't get anything more than the basics. If they want to make real money, they can work in the private sector like the rest of us.

Posted by: Jeff B. on February 8, 2010 05:30 PM
18. funny, half of households lives on less than 45k a year - that's 'real money'?

and why don't you think that cops, firemen, the military deserve decent health care? why do you hate the military?!?

btw, we approved those bennies.

Government employees should get the lowest dregs of everything.
epitome of asinine, jeff.

Posted by: mike on February 8, 2010 09:41 PM
19. Cops, firemen, teachers, state workers, military all deserve good health care. However, my belief is that their first healthcare option should be govt. provided healthcare. That doesn't mean it can't be decent. You can imagine what the govt. will do if all their public employee unions have to use the VA - they would actually fund it enough so our veterans would also get good healthcare.

The point is that those who accept govt. funded healthcare or healthcare benefits should be using govt. run facilities. There should be a financial disincentive for going outside their network - just as there is in our private health insurance plans.

This would reduce costs for all by reducing demand in for-profit medical facilities and doctors and creating a two-tier system of health care - one aimed at reduced costs and likely less quality for those who have govt. provided care - and one that is free to exist the way that we have done it so that we can continue to improve medicine at a fast pace.

Posted by: Doug on February 9, 2010 08:58 AM
20. Will the last business in Washington state please turn out the lights.

Posted by: Rob on February 9, 2010 03:18 PM
21. right, the republicans won't fund the VA for the military, you think they'll add additional funds to serve more than vets?

hilarious.

at that point, we might as well go single payer - hey, that's a great and cost effective idea!

Posted by: mike on February 9, 2010 09:18 PM
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