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Jewish World Review July 12, 2011 / 10 Tamuz, 5771 Controversial budget law begins to pay off By Byron York http://www.JewishWorldReview.com | "This is a disaster," Mark Miller, the Wisconsin Senate Democratic leader, said in February after Republican Gov. Scott Walker proposed a budget bill that would curtail the collective-bargaining powers of some public employees. Miller predicted catastrophe if the bill were to become law -- a charge repeated thousands of times by his fellow Democrats, union officials and protesters in the streets. Now the bill is law, and we have some early evidence of how it is working. And for one beleaguered Wisconsin school district, it's a godsend, not a disaster. The Kaukauna Area School District, in the Fox River Valley of Wisconsin near Appleton, has about 4,200 students and about 400 employees. It has struggled in recent times and this year faced a deficit of $400,000. But after the law went into effect at 12:01 a.m. June 29, school officials put in place new policies they estimate will turn that $400,000 deficit into a $1.5 million surplus. And it's all because of the very provisions that union leaders predicted would be disastrous. In the past, teachers and other staff at Kaukauna were required to pay 10 percent of the cost of their health-insurance coverage and none of their pension costs. Now they'll pay 12.6 percent of the cost of their coverage (still well below rates in much of the private sector) and contribute 5.8 percent of salary to their pensions. The changes will save the school board an estimated $1.2 million this year, according to board president Todd Arnoldussen. Of course, Wisconsin unions had offered to make benefit concessions during the budget fight. Wouldn't Kaukauna's money problems have been solved if Walker had just accepted those concessions and not demanded cutbacks in collective-bargaining powers? "The monetary part of it is not the entire issue," says Arnoldussen, a political independent who won a spot on the board in a nonpartisan election. Indeed, some of the most important improvements in Kaukauna's outlook are because of the new limits on collective bargaining. In the past, Kaukauna's agreement with the teachers union required the school district to purchase health-insurance coverage from something called WEA Trust -- a company created by the Wisconsin teachers union. "It was in the collective-bargaining agreement that we could negotiate only with them," says Arnoldussen. "Well, you know what happens when you can negotiate with only one vendor." This year, WEA Trust told Kaukauna that it would face a significant increase in premiums. Now the collective-bargaining agreement is gone, and the school district is free to shop around for coverage. And all of a sudden, WEA Trust has changed its position. "With these changes, the schools could go out for bids, and, lo and behold, WEA Trust said, 'We can match the lowest bid,'" says Republican state Rep. Jim Steineke, who represents the area and supports the Walker changes. At least for the moment, Kaukauna is staying with WEA Trust but saving substantial amounts of money. Then there are work rules. "In the collective-bargaining agreement, high-school teachers had to teach only five periods a day out of seven," says Arnoldussen. "Now they're going to teach six." In addition, the collective-bargaining agreement specified that teachers had to be in the school 37-1/2 hours a week. Now it will be 40 hours. The changes mean Kaukauna can reduce the size of its classes -- from 31 students to 26 students in high school and from 26 students to 23 students in elementary school. In addition, there will be more teacher time for one-on-one sessions with troubled students. Those changes would not have been possible without the much-maligned changes in collective bargaining. Teachers' salaries will stay "relatively the same," Arnoldussen says, except for higher pension and health care payments. (The top salary is about $80,000 per year, with about $35,000 in additional benefits, for 184 days of work per year -- summers off.) Finally, the money saved will be used to hire a few more teachers and institute merit pay. It is impossible to overstate how bitter and ugly the Wisconsin fight has been, and that bitterness and ugliness continues to this day with efforts to recall senators and an unseemly battle inside the state Supreme Court. But the new law is now a reality, and Gov. Walker recently told the Milwaukee Journal Sentinel that the measure would gain acceptance "with every day, week and month that goes by that the world doesn't fall apart." In the Kaukauna schools, the world is definitely not falling apart -- it's getting better. Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here. Comment on Byron York's column by clicking here. Previously: 07/04/11 Anti-Mormon bias persists, notably among Dems 06/27/11 Huntsman tries McCain model, but he's no John McCain 06/06/11 Amid media circus, Palin lays out policy positions 05/30/11 GOP condemns Dems' ‘breathtaking’ refusal to produce budget 05/24/11 Eye-for-an-eye filibuster stops Democratic nominee 05/17/11 Amid RomneyCare fight, voters ask: Where's Mitt? 05/10/11 Bin Laden coup won't help Obama in budget fight 05/09/11 Inside the GOP debate: Pawlenty underwhelms, Cain struggles, Santorum scores 05/02/11 Huckabee decision will shape GOP presidential race 04/27/11 Get ready for game of chicken over debt ceiling 04/25/11 McCain: Libyan rebels seek U.S. recognition, might pay for war costs 04/18/11 Have the U.S. and NATO given up on Libya mess? 04/11/11 Reforming entitlements is key to a strong military 04/05/11 Jihadis Who Killed Americans Get U.S. Support in Libya 04/04/11 Unions deploy money and muscle in Battle of Wisconsin 03/30/11 Labor fight in Wisconsin is far from over 03/28/11 Obama fails to grasp the gravity of going to war 03/21/11 Union equates lavish benefits to black civil rights 03/15/11 GOP should heed lesson of 1991: No guts, no glory 03/14/11 GOP focuses on NPR's subsidies, not its politics 03/08/11 While Obama seeks new ideas, his bureaucrats stifle them 02/28/11 Why the GOP shouldn't fear a government shutdown 02/22/11 In Hawaii, a dispiriting glimpse of one-party rule 02/21/11 Obama team uses slippery words to tout budget 02/15/11 Myth and memory: The battle over Reagan's legacy 02/07/11 Invoking Reagan, Palin says ‘this is a time for choosing again’ 01/31/11 With each passing year, Reagan grows larger in the American political imagination 01/24/11 House GOP begins long drive to dismantle Obamacare 01/17/11 GOP gears up again to strip NPR of federal funds 01/10/11 To House GOP, illegal immigration is a jobs issue 01/03/11 Obamacare mess is legacy of Dems' moment of power 12/27/10 Smiling Dems will soon cry ‘Washington is broken’ 12/20/10 Dems are earmark junkies but GOP goes straight 12/13/10 Needed: A ‘more presidential’ Palin 12/06/10 With Dems in a funk, Obama charts a new course 11/29/10 Obama's poll numbers point to his defeat in 2012 11/22/10 Holder ignored risks of civilian terror trials 11/16/10 Dems love facts and science --- except when they don't 11/08/10 Obama, new GOP lawmakers are on collision course 11/01/10 New GOP star on track to defeat Dem legend Russ Feingold 10/26/10 If Dems lose, Obama will blame everyone but himself 10/19/10 Profligate Congress should read its own bills 10/13/10 Why Big Labor couldn't match Glenn Beck's rally 10/11/10 Trash-talking Democrat faces defeat in Florida 10/05/10 A GOP unknown in striking distance of Barney Frank 09/28/10 Administration inflates green-jobs numbers 09/20/10 In Delaware, GOP should target Dems, not O'Donnell 09/14/10 GOP Insiders Wary of Landslide Predictions 08/31/10 For Obamacare supporters, judgment day approaches 08/23/10 Obama has himself to blame for Muslim problem 08/17/10 Cut spending without cutting services? Start here 08/17/10 For Michelle Obama, extravagance dents popularity 08/09/10 Obama's zealous civil rights enforcer gets busy 08/02/10 A battle between Left and Right --- inside the GOP 07/26/10 GOP spoiling for fight over Berwick appointment 07/20/10 How long will the public tolerate Afghan war? 07/12/10 NASA's Muslim outreach: Al Jazeera told first 07/02/10 Legal complaint against Gore is detailed, credible 06/28/10 Obama and Dems heading for electoral disaster 06/21/10 Who told Obama drilling is ‘absolutely safe’? 06/14/10 Billions for ‘green jobs,’ whatever they are 06/07/10 Sestak a no-go for any job. So what was the deal? 05/31/10 As economic worries worsen, White House puts on the glitz 05/25/10 GOP dilemma: Fight Kagan, or go along? 05/11/10 Enforcing nation's immigration laws would be a bargain 05/03/10 How Obama could lose Arizona immigration battle 04/27/10 What's behind the anti-Tea Party hate narrative? 04/20/10 As government expands, beware the post-office example 04/19/10 Who wins in 2010? Good luck reading tea leaves 04/12/10 GOP Obamacare strategy: Try repeal, then cut 04/05/10 Obamacare was mainly aimed at redistributing wealth 03/30/10 Message to Dems: People still don't like Obamacare 03/23/10 The coming consequences of Obamacare 03/16/10 Marco Rubio and the Republicans who love him 03/15/10 GOP hopes town halls take health care off table 03/08/10 Dems turn risky health vote into manhood contest 03/01/10 Why Obama defies the public on health care 02/22/10 South Carolina mulls 2012: Romney? Palin? Huck? 02/16/10 GOP winning war over Miranda rights for terrorists 02/09/10 Who are the 300 terrorists held in U.S. prisons? 02/02/10 Is Obama dissatisfied with being president? 01/19/10 The Republican dilemma: Good Michael or Bad Michael? 01/12/10 Now the lawmakers are figuring out what they didn't know 01/05/10 GOP deserves blame for Democratic excesses 12/29/09 Dems' dreams of a blue West begin to turn red 12/22/09 Why Dems push health care, even if it kills them 11/30/09 Dems' kamikaze mission: Health care by New Year's 11/23/09 Why it's a mistake to bring Gitmo prisoners here 11/16/09 Dems' slick fix: $210 billion of fiscal restraint 11/10/09 Obama can't be community organizer for the world 11/02/09 At key moment, Obama leaves health post unfilled 10/26/09 ‘Fierce urgency' for jobs, not health care’ 10/12/09 Facts hurt Jennings in youth sex controversy 10/05/09 Amid terror threat, Dems chip away at Patriot Act 09/27/09 In Afghanistan, let U.S. troops be warriors 09/21/09 Under fire, Democrats abandon ACORN in drove 09/14/09 Dems stifle Republican health care plans 09/08/09 For Dems, a serious Charlie Rangel problem 09/07/09 Obama's speech: Wrong setting for a sales job 09/01/09 What happened to the antiwar movement? 08/24/09 Why Dems may jam through health care plan 08/17/09 GOP thinks the unthinkable: Victory in 2010 08/10/09 The empty words of a journalist turned flack 08/03/09 Probe finds new clues in AmeriCorps IG scandal 07/27/09 Obamacare haunted by unkept promises of stimulus 07/20/09 Why the GOP failed the Sotomayor test 07/13/09 What the GOPers will ask Sotomayor 06/29/09 Serious questions remain for Mark Sanford 06/22/09 How GOPers can crack the AmeriCorps scandal 06/16/09 Worried about Sotomayor? Consider Andre Davis 06/08/09 Can Mitch Daniels save the GOP? 06/01/09 When the Dems derailed a Latino nominee 05/26/09 Why the GOP will defeat Obama on healthcare 05/19/09 Rosy report can't hide stimulus problems 05/12/09 The Reagan legacy is the man himself 05/05/09 Sen. Specter, meet your new friends 04/27/09 Ted Olson: ‘Torture' probes will never end 04/20/09 Who's Laughing at the ‘Axis of Evil’ today? 04/14/09 Congress needs Google to track stimulus money 04/06/09 Beyond AIG: A bill to let Big Government set your salary 03/30/09 On Spending and the Deficit, McCain Was Right 03/24/09 It's Obama's crisis now 03/17/09: Geithner-Obama economics: A joke that's not funny © 2009, NEA

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