March 7, 2010 in City

GOP’s ‘emergency’ call wouldn’t change much

By The Spokesman-Review
 
Spin Control blog

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OLYMPIA – Republicans have argued for weeks the governor should declare a financial emergency and reopen the contracts with the state employees unions, cutting pay and benefits to help balance the budget.

Workers in private industry all over the state are taking pay cuts and furloughs and paying higher medical premiums; state workers should do the same thing, they say. GOP leaders often look knowingly at the assembled press corps when they say this, realizing that newspapers have gone through multiple rounds of those changes.

“When you’re in good times, you bargain. When you’re in bad times, you bargain,” House Minority Leader Richard DeBolt of Chehalis said last week.

The law that gave state workers collective bargaining has a provision requiring a return to the bargaining table if such a financial emergency is declared, so it’s not like Republicans are pulling this out of their ears.

The amount it would save is in dispute. At one point, the GOP estimated the savings could be as much as $83 million for the two-year budget cycle. But that was for all state employees, not just the half paid out of the beleaguered general fund, and before nine months of the biennium was gone. A fiscal note last week on a GOP budget amendment estimated savings for fiscal 2011 to the general fund at $6.6 million, which isn’t chump change but also is about two-tenths of 1 percent of the shortfall.

Is the state in a financial emergency? With a general fund budget about $2.8 billion out of whack, one might answer, “No duh.” But is a gubernatorial statement that Washington is in a financial emergency without consequences? Seems it could prompt rating agencies on Wall Street to at least reconsider the state’s super-duper bond rating.

The state treasurer’s office hasn’t been asked to analyze such a hypothetical and isn’t about to step into it. Spokesman Chris McGann would only say the state “would, at some level, have to explain the context” of that declaration.

But suppose for a minute that Gregoire did exactly what Republicans wanted and declared an emergency. Nothing in the law says the state gets to go to the bargaining table and dictate terms. With an existing contract, both sides must agree to changes.

Most Republicans are huge admirers of small business and not terribly fond of unions, so it may be necessary to consider how bargaining works. In a business with no labor contract, a financially strapped owner can tell employees these are the new wages, health care deductions or work schedules; take it or take a hike. In an operation with a signed contract between management and labor, it’s not that simple. To get something one wants, one usually must give up something else.

(Full disclosure: As the former president of the small, independent union that represents editorial workers at The Spokesman-Review, I have negotiated agreements in tough times. It’s sometimes necessary, but never pleasant for either side.)

The state could offer fewer layoffs, a pretty standard carrot in tough economic times. Unions like to keep as many members employed as possible, and sometimes sacrifice everyone’s wages to keep more people getting some wages.

But the state employees unions already signaled they will accept layoffs to keep the contracts they have. Absent an agreement to change, the contracts stay in place, the Office of Financial Management says. That’s the annoying thing about contracts: Once signed, they force both sides to live with the terms until they expire, which in this case is June 2011.

The state wouldn’t get to tear up contracts and declare new terms any more than the unions get to walk off the job until they get a raise.

Spin Control is a weekly column by political reporter and Washington capital bureau chief Jim Camden. The blog has daily items, reader comments and videos at Spin Control.

14 comments on this story so far. Add yours!
  • terryalan on March 07 at 7:48 a.m.

    The GOP reminds me of the villagers storming Dr. Frankenstein’s castle. There seems to be a need for a constant ‘monster’ to point to as the enemy, be it a war enemy or a domestic target.

    Cut the State Workers!!! What a lovely, generic, meaningless statement/thought.

    Have any of you with such well formed opinions researched WHICH state workers? Or is it all?

    The heads of the universities are state workers…OK…cut them. (that’ll go over like a fart in church)…how about the football coaches at UW, EWU, WSU? Hey, they are overpaid and don’t generate any real product, do they? How about your local elementary schools? Cut those teacher’s salaries….(yeah! that’s gonna happen hehehe)…..

    I know….let’s just lay off all the staff at the Unemployment Telecenters! Currently the backlog (due to sheer numbers) is anywhere from 6 to 8 weeks from filing for Unemployment benefits to actually receiving a check…….Cut THAT staff and you can kiss your UI checks goodby….We could seriously cut Workfirst……that is a state program….Oh, wait…people who espouse all these cuts also bitch about “Those Welfare people who should be working”……..So, what is the choice?

    Oh, and by the way…as a State worker (and damned proud of it)…….I earn less than $35,000 a year and my health benefits are now taking just shy of $200.00 out of my check monthly and I went from a $10.00 copay to $25.00 per office visit and now have a big ass deductible which I didn’t have last year.

    Don’t demonize State Workers…..without US….this state will truly fall apart.

  • liarsinnews on March 07 at 8:18 a.m.

    I remember the poster showing a photo of NIXON, with a message saying, WOULD YOU BUY A CAR FROM THIS MAN? And I liked his quote when he said, “I`m not a crook”. CHRIS MARR, sold used cars for years and years, and I wonder how many lemons he peddled in his day? Or like some used car jockeys who mixed saw dust into the transmission fluid, or poured 80 pt grease meant for the rear end differential into the crank case or anything else to get rid of a junker? WOULD YOU BUY A USED CAR FROM MARR?? My observation of Marr`s track record in Olympia is he has a reckless spending habit. We don`t need spend thrifts like CHRIS MARR!! Throw the bum out of office.

  • Albert on March 07 at 8:31 a.m.

    Dick, Mr. Marr voted AGAINST the proposed tax bill. You need to do your homework before sounding off. In fact, Mr. Marr, whom I did NOT vote for, has voted against virtually every spending bill.

    Terry you sound exactly like a govt. worker…poor me. Personally we do not have medical insurance because of we cannot afford the $1000. per month premiums with a $10K deductible. You have medical insurance at $200. per month with a $25. co-pay “poor me”. According to the Wall Street Journal today, over 10% of Americans are not employed. Yet you earn far more than the average college grad. Your “job”, I can assure you, amounts to mediocrity, wherein you accomplish absolutely nothing. In fact, if the fat-folks in Olympia were to do away with your job, we would save money, and miss absolutely nothing of your negative attitude. In addition we would see our ballooning State debt decrease and perhaps you could find another more productive use with your life. If we could see the State “freeloaders”, i.e. employees reduced by 20%, the remainder would actually begin to have some legit work to do, become more efficient, and who knows, perhaps become a little less “poor me”.

  • misjustice on March 07 at 8:38 a.m.

    Great points, terryalan…I especially liked the analogy of the mob scene storming Frankenstein’s castle! You nailed it! ;)

    It is very easy for the Republican’s to be AGAINST something/someone; their latest targets seem to be state workers. However, it is much more difficult to offer reasonable solutions to our very complex problems. And to try and blame our budgetary woes on the fact that the Liberals control the Statehouse and all of those greedy state employees, instead of the true reasons such as declining revenues collected due to the recession, does not help us find solutions.Granted, it is easier to deamonize, point fingers, and jump up and down…but the people of this state deserve better.

  • SugarShane on March 07 at 8:53 a.m.

    Heres an idea! Pull all of our forces out of Iraq and Afghanistan, net savings: 70 million per DAY! End the Bush war NOW!!

  • spokanada on March 07 at 9:17 a.m.

    sorry Shane, Common sense is not welcome in the legislature or the SR comment boards.

  • Coffee on March 07 at 9:41 a.m.

    Why should I be required to take a cut in my standard of living so government workers standards can remain the same or improve. I am a net producer of worth, were as government workers are net consumers of worth.

  • Scoutster on March 07 at 10:50 a.m.

    Two thoughts;
    1. The disparity between “common folks” and state workers often comes around to benefits, the largest being pensions and health. Those who have such benefits (state workers) are going to fight tooth and nail to keep themselves from dancing with the wolves like the rest of us. And, before I demonize them, I admit I would be doing exactly the same thing. The problem is health finance, not state workers.
    2. The notion of “cutting public employees” is very easy to sell but incredibly difficult to implement. This should be a starting point for looking at HOW we hire state workers, and allowing more flexibility in their removal during difficult times. Their duties and activities are so intertwined in our daily life now, to eliminate their functions is to our detriment. It shouldn’t be that way. Just as in a small business, there should be incentives to shrink during times of famine.

  • liarsinnews on March 07 at 12:35 p.m.

    Albert: I have done my homework re Chris Marr and his reckless spending habits. I know what you are saying, my point being 1) Marr can`t be trusted, and 2) Marr`s vote yes for the kids even when “the kids” have nothing to do when he has used the worn out begging tactic. Obviously, Albert, you have not followed some of the bills he has condoned, especially those of Lisa Brown, and Gregoire. Are you even aware, Marr was the lead cheerleader for the River Park Square parking garage and would lead the cheering section at Spokane City Council meetings. Marr many times would sit with former Mayor Powers. Powers you may remember sold out the voters of the Lilac City so no criminal action could be taken against the thiefs, i. e. the RPS developers. I suppose you are all right with paying real estate taxes that end up the the Cowles cash register.

  • liarsinnews on March 07 at 12:40 p.m.

    One more comment. If anybody believes there is a difference between democrats and repulicans after a few short years in office, I`ve got a bridge for sale. At half price. On second thought put a tooth under your pillow tonight.

  • CharlesBillford on March 07 at 2:18 p.m.

    All politicians democratic or republican are enemys of the state.

    Regardless of which party is in power we are getting screwed.

    Remember Gregoires first government race win? She promised to go to every major city to have town hall meetings. It never happened and the only time we see her shriveled face is when she rides her personal airplane over to take credit for a $35 million dollar boondoggle for a road to nowhere.

    I propose we tar and feather the most corrupt politician. Just one. and pretty soon the rest will clean up their act. We have no way to hold them responsible except at the ballot box, and even thats not working since the constituents do not have the gonads to vote them out.

    You either be active in your government and hold it responsible or your have no voice to complain about how we are getting screwed by them.

  • liarsinnews on March 07 at 4:33 p.m.

    Well said, Charles Billford, well said!!!

  • cowboy on March 08 at 8:17 a.m.

    Everybody wants more money. But the state workers have to face facts they are protected against the recession. While the average citizen is under fire from all directions.

    New taxes being implemented, we keep hearing how recovery is coming as we watch our state and federal government spend spend spend.

    I know a few state workers; they are paid very well for what little they do. We could easily loose 25% of them and not even feel it. The ones left would have to do a bit more work, maybe.

    This recession is only getting worse; the state needs to throw some of their low productive people out with the bath water. Why am I paying someone 35 grand a year that has health insurance and doesn’t even appreciate it.

    While my hours have been cut to 15 hours a week and I lost my health benefits.

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