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.
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.
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.
Is that 20% before or after the employees no longer have to pay union dues? Inquiring minds want to know.
So why isn’t MSNBC bitching every time taxes go up?
Isn’t that taking percents of our income?
(It’s a rhetorical question.)
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.
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
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.
Schultz needs to lose 20% overnight. Let’s see... his head probably weighs that much. And he certainly never uses it.
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.
If only it were true.......
bm
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