May 22, 2012

Walker talks reform

While speaking at Washington free market think tank, Governor Scott Walker defended his policies on public employees including collective bargaining changes and requiring higher pensions and health contributions.

In today’s talk, “Are Wisconsin’s Budget Reforms a Model for Other States,” Walker said the issue is not only favored only by Republicans – as Democrats such as N.Y. Governor Cuomo, Mass. Governor Patrick and even Chicago Mayor Rahm Emanuel also want labor changes.

“Who would’ve thought a year ago when Occupy Chicago protestors came in, they’d mention my name and Rahm Emanuel’s name in the same breath,” said Walker, adding these changes “make sense.”

Gov. Walker said his fiscal policies are a way to protect the retirement benefits of those in public service. He mentioned states like Illinois – which fail to make tough budgetary decisions – are now looking to cut pension benefits.

The American Enterprise Institute hosted Walker for the event.

AUDIO: Brian Moon reports (1:15)

Sheriff has a ‘hot’ idea

Times are tough for county governments, but Dodge County Sheriff Todd Nehls wasn’t afraid to “spice things up” when referring to an accident on Highway 151 near Columbus Thursday morning.

Icy roads caused a semi carrying a hot cargo to roll over in the median. The 30,000 pounds of jalapeño peppers the truck was carrying needed to be cleaned up. Nehls said if the towing company doesn’t have enough labor for the clean-up, he’d offer inmates do the work for a “set fee.” 

“We could serve jalapenos for many years in our jail.”

Bob Nelson-KFIZ

 

Prevailing wage problems

State lawmakers are considering a proposal that would allow some public projects with private funding to cut labor costs.

The bill from state Representative Howard Marklein (R-Spring Green) would exempt public works projects from the prevailing wage law if at least 85-percent of the cost is being covered by private funding. The project would have to be something for public use that’s focused on conservation, recreational, or educational purposes.

Marklein says the need for the exemption became clear after a group tried to replace a shelter at Blue Mounds State Park. Despite raising more than $400,000, the project fell short of the needed funding because the organization had not raised enough to pay the prevailing wage. Marklein says government should be encouraging private investment in projects that benefit the public.

Union groups are concerned the bill could drive down wages on numerous construction jobs. For example, Thomas Gasperetti with the Wisconsin Pipe Trades says many UW projects rely heavily on private funding and he says the bill creates a “problematic loophole.”

The bill is currently awaiting action from a Senate committee.

AUDIO: Andrew Beckett reports (1:05)

2011 in Review: Passage of Act 10

Gov. Walker signs Act 10 during a ceremony in March. (Photo: Brian Moon)

While this year’s Capitol protests, recounts and recalls made headlines on their own, Governor Scott Walker’s proposal to curtail collective bargaining for most public employees was the spark that set off many of the political battles fought in Madison in 2011.

Governor Walker introduced his budget repair bill on February 11th, arguing it was needed to close a $137 million gap in state spending. Walker warned that failing to act could result in “massive layoffs at the state and the local level.”

Included in the bill was increased pension and health care contributions from state workers, along with the removal of collective bargaining on most public employment issues.

AFSCME head Rick Badger was among many union members who called the bill an assault on the rights of workers that “would wipe out decades of labor relations.”

The bill seemed positioned for quick passage, with a vote scheduled in the state Senate just a week later. On the day that vote was supposed to take place though, 14 Senate Democrats left the state for Illinois to prevent a vote. The move resulted in a Legislative standoff that would take three weeks to resolve.

As lawmakers worked to get the Democrats to come back, tens of thousands of protesters converged on the Capitol building, disrupting the daily operations of state government as demonstrators fought to “kill the bill.”

During that time, the Assembly moved ahead with work on the budget repair bill and passed it after more than 60 hours of debate. But with Senate Democrats still out of the state and negotiations going nowhere, the measure was left to sit and wait.

Then, on March 9th, Senate Republicans called a conference committee hearing late in the day, where they approved a stripped down version of the bill. The changes removed the fiscal policy elements, leaving the collective bargaining changes intact. The move allowed Republicans to approve the bill in the Senate without Democrats being present. The Assembly quickly acted on the new version and Governor Walker signed it within days.

However, implementation was blocked by a legal challenge from Democrats, who argued the conference committee violated the open meetings law by not being properly noticed at least two hours in advance. A Dane County judge agreed with that argument and blocked implementation, but the state Supreme Court overturned the decision in mid-June allowing Act 10 to finally take effect.

AUDIO: Andrew Beckett reports (1:59)

Walker says state still adding jobs (VIDEO)

While the second half of 2011 has seen the state lose nearly 15,000 jobs, Governor Scott Walker says Wisconsin is still making progress on job creation. Walker says “after three years of losing 150,000 jobs, we’ve had not quite, but just under 20,000 net new jobs” this year.

Growth has turned negative since July though, with federal figures showing Wisconsin has continued to lose jobs since Walker’s first state budget was enacted. The Governor says the financial problems in Washington and instability in Europe, where Wisconsin exports many of its products, have played a major part in that downturn.

Preliminary figures from the U.S. Bureau of Labor Statistics show the Badger State lost more the 14,600 jobs in November. It’s the second month in a row the state was projected to lead the nation in job losses, even though figures in October were later reduced by almost 75-percent. Walker admits it’s not ideal, and things will need to turn around if he’s going to fulfill his campaign pledge of helping the state add 250,000 jobs during his first term in office.

Despite the jobs lost in recent months, Walker also points out that the state’s unemployment rate continues to drop and remains below the national average. Wisconsin’s unemployment rate is currently at 7.3-percent, compared to the national average of 8.6-percent.

As for how to reverse the slide seen in recent months, the Governor says it will remain a focus of his administration. He says talking to small businesses has shown him the need to improve access to skilled workers, capital, and streamlined regulations. Walker remains hopeful that proposals in the Legislature to expand venture capital programs and streamline the permitting process for an iron ore mine in northern Wisconsin will help accelerate job creation.

AUDIO: Andrew Beckett reports (1:08)