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Ed Schultz says WI state employees might lose 20% of income under Walker’s plan (PolitiFact: False)
PolitiFact.com ^ | 2/17/2011 | Tom Kertscher, PolitiFact

Posted on 02/19/2011 5:42:33 PM PST by Qbert

When Wisconsin Gov. Scott Walker proposed making state employees pay more for health and pension benefits, one of his aides said the changes would cost the average worker roughly 8 percent of his or her salary.

Walker’s move so angered MSNBC-TV talk show host Ed Schultz that he came to Madison on Feb. 17, 2011 -- the day the Legislature was scheduled to vote on the proposals -- to air his show.

Two days earlier, Schultz claimed on "The Ed Show" the impact on state workers would be much greater than 8 percent. He said:

"People who earn $30,000, $40,000, $50,000 a year might have 20 percent of their income just disappear overnight."

Schultz hedged a bit by saying might. But the implication was the effect of Walker’s proposals would be to cut the income of large numbers of state workers by 20 percent.

Let’s see if he’s right.

Schultz said in the broadcast that he had been given figures that show a 20 percent impact. We asked his staff for that information and they said they would attempt to provide it.  But as of publication, we have not heard from them.

Under the Republican governor’s plan, state employees would contribute 5.8 percent of their pay toward pensions and pay at least 12 percent of their health insurance premiums.

Meanwhile, we consulted other sources on how much more state workers would pay if the budget repair bill is adopted.

It’s a political debate, but this is largely a mathematical question.

Here’s what our sources said:

Carla Vigue, spokeswoman for the state Department of Administration: The higher contributions would amount to, on average, a 9.4 percent cut in take-home pay.

Joe Wineke, former administrator of the state Division of Compensation and Labor Relations and former chairman of the state Democratic Party: The impact on most workers would be 6.8 percent to 11 percent of their salary.

Walker spokesman Cullen Werwie: Detailed estimates are being prepared, but the cost to the average worker would be about 8 percent of their wages.

University of Wisconsin-Eau Claire Chancellor Brian Levin-Stankevich: In a memo, he said a UW-Eau Claire employee who earns $40,000 per year would pay an annual pension contribution of $2,320, up from $80; and an annual health insurance premium for family coverage of $2,820, up from $1,068. That’s a total of $3,992 per year, or 10 percent of that employee’s salary.

Under the plan, all employees would pay the same percentage of their income toward pensions.

But the larger health insurance payments would eat up a higher percentage of the income of low-income employees than of high-income employees.

So the total impact would vary on a percentage basis.

That said, the total impact, in terms of a percentage of income, would not vary widely, according to Wineke. The vast majority of state employees take the same so-called Tier 1 health coverage, he said.

Let’s return to the statement:

Schultz said Wisconsin state employees earning $30,000 to $50,000 per year "might have 20 percent of their income just disappear overnight" as a result of Walker’s proposals to boost state employee payments for health and pension benefits. It was a broad statement about the impact of the measures.  

The sources we consulted indicate the range is 6.8 percent to 11 percent. Even if the higher payments comprise 20 percent of the income of some employees, there’s no indication it will be that high on a wide scale, particularly for state workers earning as much as $50,000 per year. If Schultz can provide evidence of a large-scale 20 percent impact, we’ll review this item.

But this is our rating: False.



TOPICS: Culture/Society; News/Current Events; US: Wisconsin
KEYWORDS: edschultz; walker; wi; wisconsinshowdown

1 posted on 02/19/2011 5:42:40 PM PST by Qbert
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To: Qbert

Sgt. Shultz must use the same information sources that Rachel Maddow uses.


2 posted on 02/19/2011 5:44:29 PM PST by ReverendJames (Only A Painter Or A Liberal Can Change Black To White)
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To: Qbert

Shultz is your typical fatass, big mouth ignorant liberal.


3 posted on 02/19/2011 5:45:45 PM PST by bcr100
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To: Qbert

Don’t mean to blow the thread, but who gives a turd about what Ed Schultz has to say?


4 posted on 02/19/2011 5:46:28 PM PST by rockinqsranch (Dems, Libs, Socialists, call 'em what you will, they ALL have fairies livin' in their trees.)
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To: Qbert

I think they should lose 25% like I have!


5 posted on 02/19/2011 5:46:37 PM PST by CommieCutter (I'll get an internet ID when Obama shows his birth certificate.)
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To: Qbert
Even if true, which I very much doubt, I have the impression that the state workers in Wisconsin average about 20% more compensation than the average Wisconsin taxpayer. When you add in the fact that their jobs are essentially recession-proof and their paychecks are essentially inflation-proof, and their retirement packages are very generous, well...
6 posted on 02/19/2011 5:48:46 PM PST by Steely Tom (Obama goes on long after the thrill of Obama is gone)
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To: Qbert

Actually on an after-tax cash flow basis, he might be right. But even so, a 100k avg compensation with about 45% of that in benefits, many of that non-taxable, then that’s just too bad. Underworked, overpaid for decades .......so give 20% of it back, I don’t give a damn if it hurts their little bitty selves. People today are going 1-2+ years unemployed and getting jobs @ 20 -30% less than before.

So screw em.


7 posted on 02/19/2011 5:49:22 PM PST by A_Former_Democrat (The Rodney King Riots: Courtesy of ABC, CBS, NBC & CNN)
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To: Qbert

That’s OK, because they can make up the difference by not paying union dues anymore and opting out of having dues deducted from their paychecks.

At least they can after this law passes.

No worker in the US should be held hostage to unions period, compulsory union dues are unconstitutional under the first and 14th amendments, and the unions need to be stripped of their ability to steal money from workers paychecks on a national level.

If the workers love unions so much they will be happy to voluntarily send them dues, there nothing patently illegal about a POTUS issuing an executive order immediately ending withholding of union dues nationwide.

Lets fight it out in the courts, and lets make it a campaign issue, with the promise to end compulsory withholding of union dues one of the first acts of the new GOP Administration.

Its stupid to allow the left(Communists) to use the same mechanism the IRS uses to fund themselves.


8 posted on 02/19/2011 5:50:00 PM PST by Rome2000 (OBAMA IS A COMMUNIST CRYPTO-MUSLIM)
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To: Qbert

Maybe they should start stop voting for Democrats who raise there taxes and healthcare premium costs.


9 posted on 02/19/2011 5:51:22 PM PST by KansasGirl (1)
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To: Qbert

Boo...Effing...Hoo...


10 posted on 02/19/2011 5:51:30 PM PST by unixfox (Abolish Slavery, Repeal The 16th Amendment!)
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To: ReverendJames

Let’s hope not, cuz I think she pulls ‘em out of her ass!


11 posted on 02/19/2011 5:53:48 PM PST by bigbob (-)
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To: bigbob

Yeah well it seems Sgt. Shultz goes to the same source, his I mean.


12 posted on 02/19/2011 5:55:40 PM PST by ReverendJames (Only A Painter Or A Liberal Can Change Black To White)
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To: A_Former_Democrat

They should actually be thanking Gov. Walker for saving their jobs in the first place- some other teachers haven’t been as lucky.


13 posted on 02/19/2011 5:57:26 PM PST by Qbert ("I seem to smell the stench of appeasement in the air" - Margaret Thatcher)
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To: Qbert

Even if correcting for the nearly 4 Billion shortfall - that WI Government Employees lost 20% of their pay — so what - that is the price for believing in the ‘tooth fairy’ for so many years... Free pensions just do not happen ...

The State Union employees were sold a bill of goods by past State Administrations and State Legislatures... the Ponzi schemes the Unions bought into were just unsustainable lies foisted upon them by crooked politicians ...

FREE benefits and Free Pensions do not exist for tens of thousands of workers - they never did except in the minds of the crooks selling such and the naive union members who bought the LIE...


14 posted on 02/19/2011 5:58:01 PM PST by ICCtheWay
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To: ReverendJames
Shultz and Maddow clearly make it up as they go.

Now, if the Governor had any C.O.Jones' he'd offer the state employees the same standards applicable to federal employees.

What he's doing here is rather mamby-pamby and leaves a system in place that's too expensive.

15 posted on 02/19/2011 6:09:36 PM PST by muawiyah
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To: Qbert

They should lose 25% and more.


16 posted on 02/19/2011 6:19:04 PM PST by Cheetahcat ( November 4 2008 ,A date which will live in Infamy.)
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To: bcr100
Shultz is your typical fatass, big mouth ignorant liberal.

Showing a libtard a FACT is the same as flashing a cross to a vampire.
17 posted on 02/19/2011 6:34:40 PM PST by Cheerio (Barry Hussein Soetoro-0bama=The Complete Destruction of American Capitalism)
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To: Qbert

I pay approximately 1/3 of my pension for health insurance premiums. I have zero sympathy for these pigs.

No offense intended toward the humble pig, I do loves me some bacon!


18 posted on 02/19/2011 6:39:11 PM PST by Graybeard58 (Of course Obama loves his country. The thing is, Sarah loves mine.)
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To: Qbert

Well, they are ahead of most of us small businesses who have lost 30-40% since we turned to marxism in 2008.


19 posted on 02/19/2011 6:41:39 PM PST by hope
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To: Qbert

Crazy Ed...


20 posted on 02/19/2011 6:44:06 PM PST by kcvl
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To: Qbert

I can’t blame anybody for not being excited about a pay reduction. But I’ll save my Wisconsin teacher sympathy for the ones who stayed on the job. The ones who left their work under false pretenses get no sympathy from me. The ones who so left their work are quickly drying out the well of public compassion.


21 posted on 02/19/2011 6:46:25 PM PST by Colonel Kangaroo
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To: Colonel Kangaroo

Those of us who are self employed look at these leeches and parasites and want to puke.

Seriously, these public employees are worse than the worst of welfare queens with their demands and attitudes. I really hope the gov gives a 24 hour ultimatum and all those not showing up to work are fired on the spot and losing EVERYTHING.

These lazy over paid mini-madoffs have no idea what the rest of us deal with trying to keep things afloat and we are sick of it.

Their pension alone is a madoffian scheme yet they are too greedy and ignorant to realize it.


22 posted on 02/19/2011 6:51:06 PM PST by GlockThe Vote (Who needs Al Queda to worry about when we have Obama?)
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To: Qbert
As a taxpayer I would like to know where "OUR" collective bargaining rights are? If we (the taxpayers) went out on strike and decided not to pay our taxes how long do you think it would take the Government to send in their mercenary police public service union haul you off to jail?
23 posted on 02/19/2011 7:04:44 PM PST by johnny reb (When in the course of human events.......)
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To: Qbert

Is that 20% before or after the employees no longer have to pay union dues? Inquiring minds want to know.


24 posted on 02/19/2011 7:27:01 PM PST by Loyal Buckeye
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To: Qbert

So why isn’t MSNBC bitching every time taxes go up?

Isn’t that taking percents of our income?

(It’s a rhetorical question.)


25 posted on 02/19/2011 7:28:12 PM PST by Tzimisce (Never forget that the American Revolution began when the British tried to disarm the colonists.)
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To: Qbert
"University of Wisconsin-Eau Claire Chancellor Brian Levin-Stankevich: In a memo, he said a UW-Eau Claire employee who earns $40,000 per year would pay an annual pension contribution of $2,320, up from $80; and an annual health insurance premium for family coverage of $2,820, up from $1,068.

That’s a total of $3,992 per year, or 10 percent of that employee’s salary."

IF the union was concerned about its members it would cut the 1,100 dollar annual dues to help thier members pay for the additional costs.

Instead the Union offered to throw the members under the bus while keeping the dues at $1,100.00.

26 posted on 02/19/2011 7:36:49 PM PST by NoLibZone (Impeach Obama. Then try him for treason.)
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To: Qbert

Somewhere along the line, someone made some horrible decisions running Wisconsin’s pension funds. According to David Cay Johnston of Tax.com, 15% of employee contributions get eaten up in fees to Wall Street.

Maybe the unions should redirect their ire? About 1,000 miles to the east?

I’d say also track 50% of those fee’s back to Union upper mng in the form of bribes and kickbacks......

If they get rid of the wasteful fees on the billions in the pension........eddies 25% drops to 10% real quickly


27 posted on 02/19/2011 7:47:04 PM PST by sbark
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To: Qbert

Come on! One of you “Compassionate Conservatives” call the Waaambulance, OK?

Crickets . . . . .

Looks like all of us are having trouble with our Give-A-Damn, Ver. 1.1 program.

What a pity.


28 posted on 02/19/2011 8:04:42 PM PST by GladesGuru (In a society predicated upon freedom, it is essential to examine principles,)
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To: Qbert

Schultz needs to lose 20% overnight. Let’s see... his head probably weighs that much. And he certainly never uses it.


29 posted on 02/19/2011 8:18:16 PM PST by VeniVidiVici (Only two things come from Wisconsin and I see you're wearing an "I Heart Madistan" t-shirt)
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To: Qbert

Only 20%? they should use the people who are on welfare and the handicapped to fill the government job positions any way.

Let the brain dead unionists get a job they would be qualified for, like cleaning latrines.

Well maybe that is what they already do but they get paid much too much.


30 posted on 02/19/2011 8:29:14 PM PST by ravenwolf (Just a bit of the long list of proofs)
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If only it were true.......


31 posted on 02/19/2011 9:01:11 PM PST by Godwin1
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To: Qbert

bm


32 posted on 02/19/2011 10:39:35 PM PST by Para-Ord.45
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