Posts Tagged ‘State Budget’

Wigderson on Earmarks in State Budget

By James Wigderson
Special Guest Perspective for the MacIver Institute

State Senator Rich Zipperer’s committee is again considering his bill to make budget “earmarks” transparent in the state budget process. Zipperer’s bill would not end budget earmarks, but legislators would have to defend the earmarks for their districts in the budget.

Earmarks are budget provisions for a specific beneficiary that would not be generally applicable, whether it’s expenditure or a benefit in the state tax code. Earmarks are often included in government budgets to win the support of legislators for passage of the budget bill.

Zipperer’s bill, SB 114, would end what he called “airdrops.” These are provisions inserted by the conference committee after the budget bill’s passage by the Joint Finance Committee and both houses of the legislature. This would stop last minute deals outside of the public eye. The conference committee would still have the ability to reduce the amount for a particular earmark.

The bill would also change the rules in the Joint Finance Committee regarding earmarks. Instead of requiring a majority to take an earmark provision out, the bill would require a majority vote to keep an earmark in. This would be especially important in those years when control of the legislature is split and there is equal representation of both parties.

The most important part of Zipperer’s bill is a requirement that the legislative fiscal bureau would create an “earmark transparency report.” The report would contain a list of all earmarks in the budget bill and the cost of each earmark. The bill would also identify the beneficiary of each earmark, including the Assembly and Senate District of the earmark beneficiary.

Both parties are guilty of including earmarks in the budget process. Zipperer says that the last state budget was better than most.  “It certainly wasn’t at the level of the previous budget.”

But there were still earmarks. For example, “There was $25,000 for Copper Falls with no explanation.” Zipperer explained, “It was not enough to make me oppose the budget,” but it showed that earmarks continued even under Republican control.

In the last budget under Governor Jim Doyle, perhaps the most infamous example of an earmark was $46,000 for recycling containers for Wrightstown, a town of 2000 people.

Other examples of earmarks in the last budget under Doyle include $5 million for the Bradley Center (part of which was spent on a new scoreboard) and $500,000 for the Oshkosh Opera House.

The argument for earmarks is that it allows the legislature to specify and set priorities for government spending. Zipperer says the higher the level of government, the more potential harm there is for earmarks.  Earmarks distort the real priorities for spending. They also mean that the state is making a spending decision that should have been made locally.

However, “Even if you support earmarks, you can still support this bill,” Zipperer said. After all, the bill does not stop earmarks, it only makes members of the legislature have to defend them.

Earmark transparency has been an interest of Zipperer’s since he was first elected to the Assembly and saw his first budget process. He says what makes this year’s bill more likely to pass than his past attempts is that the bill has been simplified to identifying the earmarks.  That way the legislature and the public will know about them before there is a vote on the budget.

Zipperer also claims bipartisan support for the bill this time. Senator Tim Carpenter of Milwaukee is a co-sponsor of the bill.

The bill has been through a public hearing and will soon be getting a committee vote. Despite the recalls that threaten to overshadow any work the legislature does, Zipperer is optimistic there will be enough floor time for his bill to pass.

If it passes, voters can expect to hear more about state grants for soybean crushers and climate change classrooms. Not because there are more or less earmarks like them, but because the legislative fiscal bureau will be required to list them before the legislature votes to approve them.

$3 Billion in Savings Eyed

MacIver News Service | January 10, 2012

[Madison, Wisc…] Governor Walker hopes the initiatives identified by a state panel will save taxpayers nearly three billion dollars over the next decade.

A year after it was first created by an executive order, the Governor’s Commission on Waste Fraud and Abuse released their final report Wednesday.

“Based on months of review and discussion it is clear that the state’s budgeting and financial systems are antiquated,” wrote Commission Chairperson Craig Rakowski. “To eliminate waste, fraud and abuse there needs to be a clear understanding on how budgeted money is actually being spent. In other words, we need to do a much better job following the cash.”

Overall the Commission believes its recommendations can reduce spending by local units of government by $82.6 million and state government by $373 million for a total annual savings to taxpayers of $445 million.

In addition to specific recommendations, the report outlines five general, big picture areas of concern:

  1. Wisconsin’s accounting and financial information systems need to be brought up to date. According to DOA personnel the accounting system currently being used by them is almost 20 years old. There obviously has been a significant change in technology during those 20 years, technology that Wisconsin is not taking advantage of. It is impossible to make sound financial decisions without timely, reliable and accurate information. Many times these systems have already been developed and implemented in other states and would be available to us.
  2. The traditional method of budgeting being performed needs to be challenged. While zero based budgeting appears to be extremely hard and time consuming some modified form needs to be put in place. We cannot continue to roll forward previous budgets without accepting that there is cushion and waste built into them. The fact that agencies have been required to lapse certain percentages of their budgets and that many times the same items are being lapsed for the second or third time shows that this cushion exists.
  3. One of the report recommendations is to make a certain dollar amount of lapsing permanent. I think we should take this a step further and say that if something is lapsed more than once it should be removed from the budget altogether. Why, for instance, is an agency that has relocated to reduce lease cost by $500,000 not required to reduce their budget by that same $500,000 but instead allowed to use it towards their lapses budget after budget?
  4. The State of Wisconsin should be doing business on a GAAP basis. In my opinion the modified cash basis currently in place allows for cutoff issues and could be used to circumvent the State’s balanced budget requirement.
  5. Once information systems are put in place which provides timely accurate financial information, agency’s budgets and cash flow should be tracked on a monthly or at least a quarterly basis. This would allow expenditures in the last quarter of the year to be reviewed for appropriateness. Any possible “using up” of the remaining budget could easily be identified with this type of information.

“Many times questions asked by members of the commission remained unanswered because we were told that information was just not available,” Rakowski wrote in the final report. “This needs to be remedied.”

Rakowski wrote that based on conversations the commission had with individuals familiar with the state’s public assistance programs, waste fraud and abuse in those programs range from two to 15 percent of budgeted funds.

“The most common opinion is around 10%,” Rakowski. “This is unacceptable as it is keeping assistance from the individuals in our society that really need it.”

From the report:

Public comments and suggestions focused on Wisconsin’s public assistance programs more than any other topic discussed by the Commission. Wisconsin has well over 1 million beneficiaries and Medicaid expenditures alone are expected to eclipse $7 billion this fiscal year.

What the Commission found was an explosion in public assistance spending and program expansions over the last decade with no corresponding investment in program integrity. Actually, program integrity spending went down, reduced by 76% at the same time FoodShare enrollment more than doubled and Medicaid enrollment grew by 50%.

In part, because of the discussions of this Commission the Department of Health Services has created an Office of Inspector General and has invested in cracking down on fraud in public assistance programs. Results have already been seen. Benefits saved due to fraud in FoodShare alone climbed 46% in October and payments recouped 80% compared to the first month of 2011.

As we previously reported,  Deputy Administrator Andrea Reid of the UI Division of the Department of Workforce development told the Commission last year that unemployment benefit fraud in Wisconsin has skyrocketed over the past few years.  Between 2008 and 2010, the amount of overpayments shot up from $21 million to $78 million. The number of cases increased 130 percent. The amount of overpayments over $1000 that were intentionally concealed went from $9.25 million in 2007 to $40.5 million in 2010, a 338 percent increase.

Even with the cases of fraud increasing, few people have been successfully prosecuted for it.  In order to face punitive action, a person must have fraudulently received more than $5000 in benefits and committed 5 acts of concealment. In 2010, 2,169 people met those requirements, yet only 31 of them were prosecuted. That resulted in 11 convictions.

In 2011, the Wisconsin legislature passed a one-week waiting period before would-be recipients can receive UI benefits. This move, criticized my many legislative opponents as cruel, is expected to save the state up to $50 million a year as the extra time will allow the state to investigate the validity of claims.

Reid told the commission in August that the state’s ability to root out fraud is limited, in part, because the data processing equipment was more than 25 years old.

“This application is inefficient, does not meet our business requirements, and can not be modified quickly enough to respond to program modifications or law changes,” she said.

In their final report the Commission found that DWD is working to correct the above issues and upgrading its information technology which is expected to improve its efficiency.

Administration officials also noted that the Commission’s work has also led other state agencies to already begin implementing some cost saving measures because of the discussions they had during 2011.

  • The Department of Health Services has created an Office of Inspector General and has invested in cracking down on fraud in public assistance programs. Results have already been seen. Benefits saved due to fraud in FoodShare alone climbed 46% in October and payments recouped 80% compared to the first month of 2011.
  • State employee compensation plans were modified in an effort to reduce the amount of unnecessary and costly overtime.
  • Wisconsin Department of Veterans Affairs (WDVA) found that they could accommodate their agency staff in office space soon to be vacated by the former Wisconsin Department of Commerce, which is estimated to save WDVA between $300,000 and $400,000 annually.

“The recommendations by the Commission will help state government operate more efficiently and effectively,” said Governor Walker.  “Moving forward I will work with members of both political parties to implement the remaining recommendations made by the commission.”

Read the entire report, here.

Walker Looks to Expand Family Care

MacIver News Service | December 28, 2011

[Madison, Wisc...] Wisconsin Governor Scott Walker said Wednesday he will ask lawmakers to lift enrollment caps for Family Care and expand the program to all counties in the state.

The current state budget included a $1.2 billion increase to Medicaid.  Walker’s new proposal would cost $80 million for the remainder of the biennium. He said with the funding increase included in the 2011-2013 budget and recent efficiencies implemented by the Department of Health Services, his proposal would require no additional funding.

Gov. Scott Walker

“It was really built off the fact that we put an unprecedented amount of new funding into Medicaid, more than $1.2 billion was added this budget,” said Walker. “That’s one of the largest increases of any state in the country,” Walker said at a press conference Wednesday.

Family Care is a program that provides long-term care focused on helping senior citizens and disabled individuals stay in their homes.

Earlier this year an enrollment cap was placed on Family Care in response to a Legislative Audit Bureau (LAB) evaluation which found a number of areas the program could be improved and made more efficient.  After a briefing on the work done by DHS over the past couple of months Walker announced a plan to lift the Family Care cap. Governor Walker’s plan also calls for Family Care to be expanded to additional counties.

“I am confident that Family Care can continue to be implemented efficiently and cost effectively,” said Governor Walker.  “Lifting the cap will be done in a way that respects taxpayers and is mindful of their investment, while at the same time providing care for those who are truly in need.”

The Governor’s hopes for legislative action and DHS implementation  of the Family Care expansion by this spring. He said the pause in the wake of the audit helped stabilized the program for the future.

“It really put us in a position where we could support many of the other programs we have and through these changes and improvements, ensure that not only we could lift the cap for Family Care, but also to do so in a way that is sustainable long into the future, long beyond just this current budget cycle we’re in,” Walker said.

About 14 counties currently do not offer the program, mostly in the northeastern part of the state.

Walker hopes the legislature will take up his proposal in the coming weeks, and expects broad bipartisan support.

Also at the announcement today to support the lifting of the enrollment cap was Lynn Breedlove from Disability Rights Wisconsin, Heather Bruemmer Executive Director of the Board on Aging and Long Term Care, Kim Marheine from the Board on Aging and Long Term Care, Beth Sweeden from the Board for Persons with Developmental Disabilities, Maureen Ryan with the Wisconsin Coalition of Independent Living Centers, Michael Blumenfeld representing several MCOs, Teri Buros from Southwest Wisconsin Family Center, State Senator Terry Moulton (R-Chippewa Falls), and State Representative Dean Kaufert (R-Neenah).

Medicaid Showdown Looms

This weekend, the Milwaukee Journal Sentinel published a column by MacIver President Brett Healy.

In part, Healy wrote:

With Wisconsin stuck in the middle of the highly charged “recall season,” those on the left immediately seized upon this waiver in an attempt to maximize political damage. But what they conveniently forget to mention in this attack is that the program is broke and in need of a fix. What is their plan? Is it the plan suggested by the Obama administration?

In a February 2011 letter from Department of Health and Human Services Secretary Kathleen Sebelius, the Obama administration suggested the option of ending eligibility for 53,000 non-disabled, non-elderly and non-pregnant adults on Medicaid with income above 133% of FPL. This, the feds say, would save the state over $60 million of general purpose revenue a year. While I personally agree with this approach, the left in Wisconsin would certainly be apoplectic if DHS attempted this one-size-fits-all remedy.

If Wisconsin is granted the waiver, only individuals who refuse to pay the 5% premium, who have access to affordable employer-sponsored coverage, who fail to prove they are Wisconsin residents or who make too much money to qualify would be kicked out of the program.

In between when the column was written and when it was published, the Federal Centers for Medicare and Medicaid Services preliminarily approved parts of Wisconsin’s waiver request.  However, CMS said “it is unlikely we will be able to meet the State’s requested approval date of December 31, 2011, for all the proposed changes.”

They did approve e the following proposals as applied to non-disabled, non-pregnant adults with income above 133 percent of the Federal Poverty Level

  • Application of the 9.5% affordability test with respect to employer sponsored insurance that meets minimum benefit standards;
  • Premium increase for the adult family members up to 5% of family income (this item, as proposed by the State, would be for non-disabled, non-pregnant adults with income above 150% of the FPL); and
  • A 12-month restrictive re-enrollment period for Medicaid eligibility for the adults who fail to make a premium payment.

The Walker Administration continues to push for the full waiver application, but if the feds reuse to budge, the stalemate will likely force their hand to disenroll individuals in the manner by which the Obama Administration is suggesting.

Read Healy’s whole column, here.

Freed from Union Contracts, School Districts Able to Shed Costly Sick Leave Conversion Programs

MacIver News Service | December 8, 2011

While many school districts across Wisconsin have taken steps to protect themselves against unpredictable sick leave policy expenses, others have been hit hard this past year by an unusually high number of retirements.

Thanks to changes in the state law governing public employees, districts can make changes in these programs without having to negotiate with local teachers’ unions.

The MacIver News Service has been conducting research on how different levels of government are impacted by sick leave policy across Wisconsin.  Some policies allow retiring employees to convert unused sick leave into either cash or insurance premiums upon retirement.

We reached out to school district officials across the state, enquiring about their sick leave policies. Almost 80 responded to our requests for information.

Like all levels of government, school districts tend to be generous with sick leave when compared to the private sector. Teachers typically earn 10 to 12 sick days a year, and are allowed to accumulate anywhere from 50 to 160 days. Some districts do not have a limit on how many days can be banked.

What happens to those days when a teacher retires varies greatly. Some districts allow teachers to convert them to cash. Others allow the days to be converted into credits for post-retirement health insurance. And in more than a quarter of the districts that responded, those days are lost upon retirement.

Two superintendents stated their districts view “good health as it’s own reward.”

There were a handful of districts that do not cap the number of days a teacher can bank.  In most of them, those days are lost at retirement anyway. However, two districts, Tomorrow River Schools in Portage County and Sun Prairie school district in Dane County, convert those days into insurance credits. A three year breakdown shows how unpredictable this expense can be.

In 2008-09 TRS paid out $74,970 and SP paid out $27,981. In 2009-10 TRS paid out $102,166 and SP paid out $38,839.  Finally in 2010-11 TRS paid out $118,809 and SP paid out $46,402.

As for districts that pay out sick leave in cash, Palmyra and Sauk Prairie got hit the hardest. In 2009-10 Palmyra paid out $41,331.  In 2010-11 it paid out $109,322.  In 2009-10 Sauk Prairie paid out $45,000.  In 2010-11 it paid out $193,000.

By the way, Palmyra serves a total of 1,152 students and Sauk Prairie serves 2,718, according to DPI.

With Act 10 now in effect, many districts are replacing labor contracts with employee handbooks.  Some districts, like Eau Claire, are moving away from these policies that allow unused sick leave to be cashed out upon retirement.

This is the latest in a series of articles on public employee compensation in Wisconsin.The MacIver News Service earlier reported state employees who had retired in 2011 to that point had converted more than $340 million of unused sick leave into insurance credits. MNS also reported on local governments’ sick leave pay out policies, which also cost millions of dollars annually.

Failure to Adjust Union Contracts in Milwaukee, Kenosha Leads to Most Teacher Reductions in Wisconsin

By Christian D’Andrea
MacIver Institute Education Policy Analyst

The Wisconsin Association of School District Administrators (WASDA) recently released a survey of many Wisconsin school districts to gauge how local institutions are dealing with the 2011-2013 state budget. The results painted a disappointing picture for the public schools, detailing staff cuts and larger classroom sizes on average across the state. However, a closer look suggests that two Wisconsin districts – districts that refused to reopen their contracts to make employee benefit contributions and save significant sums of money – may skew the overall outlook of these polls.

Milwaukee and Kenosha are two of the state’s three largest school districts. They serve 80,934 and 22,986 students, respectively, according to DPI’s latest enrollment counts. They are also the highest profile holdouts when it came to Act 10, employee benefit reform, and the 2011-2013 state budget.

We’ve covered the cases in Milwaukee and Kenosha before. Each district has chosen to maintain their preexisting contracts rather than modify them, which means that the two systems faced significant budget shortcomings in the current year. Had either district adjusted their contracts to accept employee contributions to health insurance and pension costs, millions of dollars would have been saved in both cities. This would have allowed more money to flow into the classrooms and save teaching jobs.

The impact of the district’s inability to renegotiate their contracts is staggering. The two cities are head-and-shoulders above the rest of Wisconsin when it comes to negative effects like teacher layoffs and increases in classroom sizes, according to the survey’s raw data.

The WASDA survey uncovered a reduction of 1,675.84 teaching positions in the state of Wisconsin for the current school year. Over half of these unfilled jobs came from Milwaukee and Kenosha.

Milwaukee and Kenosha combined for a reduction of 869 full time teaching positions for the 2011-2012 school year. Despite educating approximately one-seventh (14.6 percent) of the students covered in the WASDA survey, they constituted over half of the educator losses. 51.9 percent of the vacant jobs recorded in the raw data are from the two districts, including 613 unfilled positions in Milwaukee.

According to survey data, 61 teachers retired in Kenosha. Another 94 were laid off and 166 more did not have their contracts renewed for the 2011-2012 school year. In Milwaukee, there were 137 retirements, 345 layoffs, and 173 non-renewals amongst the teaching staff. Milwaukee also saw 325 teacher aides receive pink slips for the year, along with 64 members of their support staff. Conversely, Madison Metropolitan School District, the state’s second largest district, reported zero teacher layoffs for the school year.

Statewide, there was a student to teacher ratio of approximately 14.22 students for every teacher. In Milwaukee and Kenosha, this figure rose to 17.29. If you exclude the two cities – the state’s largest districts that have not included employee contributions to offset funding decreases contained in the 2011-2013 state budget – from Wisconsin’s total, the ratio drops to just under 13.8 students for every teacher in the state.

According to survey data, Milwaukee’s student:teacher ratio rose from 18.9 to 21.5 – the highest mark in the state. In Kenosha this figure increased from 13.7 to 16.1. It should be noted that the survey’s student:teacher ratio figures differ slightly from the raw data of dividing annual third Friday enrollment counts by teacher staffing data.

Many districts have faced financial hardships in the midst of Wisconsin’s economic downturn. However, the results of the WASDA survey aren’t as dramatic as they appear if you exclude the two largest districts; districts that refused to reopen their contracts and save teacher jobs. Milwaukee and Kenosha make up the bulk of the state’s disappointing results – but if they had agreed to concessions, their class sizes would have been smaller and fewer teachers – both young and old – would be looking for new positions.

BadgerCare Continues to Grow

Data obtained from the Forward Health website. 

Lawmaker Calls for Reform in Makeup of Wisc. Medical Examining Board After Panel Lightly Punishes Doctors from Fake Sick Note Scam

MacIver News Service | November 17, 2011
[Madison, Wisc....] State Senator Glenn Grothman (R-West Bend) reacted with what he called “extreme displeasure” at the light punishment handed out to doctors who earlier this year were caught by the MacIver News Service  passing out obviously fraudulent excuses for protesters who were calling in sick.

“It is important that people have confidence in the integrity of their doctors,” said Grothman.  “If a medical provider provides phony excuses for friends and political allies, how do we know these same doctors are not making up fraudulent excuses for cases involving workers compensation, personal injury claims, or falsely prescribing prescription drugs?”

The doctors reprimanded Wednesday and who issued fake sick notes to anyone who wanted one, with only a cursory question and answer ‘session’ are:

Adam H. Balin
Mark B. Beamsley
Hannah M. Keevil
Bernard F. Micke
Kathleen A. Oriel
James H. Shropshire
Louis A. Sanner

Ronni L. Hayon and Patrick A. McKenna had received administrative warnings and were involved in the same incident.

The MacIver News Service broke this story and has video evidence of many of the ‘examinations’ that show the brevity of the interactions and the questions asked. Dr. Sanner even chastized our reporter for violations of patient privacy laws by taping the exams which took place in front of tens of thousands of people on a public sidewalk across from the Wisconsin State Capitol.

These fraudulent esick notes were not without financial damage to employers, Grothman noted. Further, many school boards and taxpayers, who perhaps had to pay for substitute teachers or parents who were forced to pay for daycare or miss work when schools were needlessly closed the Senator said.

“I would have expected at least a month’s loss of license for so brazenly making up excuses for people who wanted a day off,” said Grothman.  “It is also disappointing the University of Wisconsin has not independently suspended doctors under their purview.  This will only perpetuate a stereotype that the UW is just concerned about keeping their well-paid employees getting a paycheck and the Medical Examining Board is more concerned about protecting the paychecks of unethical and unscrupulous doctors than maintaining integrity in the medical profession.”

The Medical Examining Board is currently made up of 12 members, only three of which are not members of the medical community.

“It is clear the Good Old Boy Network is too prevalent on the Medical Examining Board and the State Legislature should act to include more private citizens who will express greater concern for fundamental ethics in medicine and restore the public’s confidence in this state licensing board,” said Grothman.  “Perhaps two new members that are employers who have to suffer the consequences of doctors who frivolously approve sick claims will help provide some semblance of balance to the Board.”

Read the original MacIver News report and watch the video that instantly turned this incident into national news in February.

Democrats Push Pedal Power as Solution to Budget Woes

By James Wigderson
Special Guest Perspective for the MacIver Institute

State Representative Brett Hulsey has found a way to solve all of our state budget problems. Everyone, get out of your cars. No really, get out of your cars and ride a bicycle.

In his press release, Hulsey cites a new study that says, “replacing short driving trips with biking would benefit the upper Midwest, including Wisconsin, by saving at least $3.8 billion, saving 1,000 lives, and cutting traffic by one-fifth or 20%.”  Good to know someone on Hulsey’s staff knows 20% is the same as one-fifth. Probably homeschooled.

If only Governor Jim Doyle had known about bicycles. He, and Representative Hulsey, might never have had to raise taxes in Doyle’s last budget.

There is, of course, one small catch. When the study says, “replacing short driving trips with biking” they mean 50% of the trips less than or equal to eight kilometers. In American English, that’s almost five miles on your SUV’s odometer.

My wife’s trips today to the grocery store, Menards hardware store and for take out pizza all should have been on her bicycle. But of course that wouldn’t work. It’s hard to carry the latest Christmas outdoor decorations from the hardware store on the back of a Schwinn, even with a basket. Two gallons of milk, cereal for a week, bacon, eggs, bread, and light bulbs weren’t going to fit on the back of the bike, either. As for the carry out pizza, that might have worked. Just leave the two-liter of soda and the breadsticks behind.

So we were 0-3. Actually we were 0-4 if you throw in the trip to the corner gas station to fill the car’s tank for the week.

That sounds like a lot of trips and that’s the point. Even if she had been able to make those trips by bicycle, she would not have been able to make all the trips because of how long it would have taken her.

That means somebody else would have needed to make 4 trips today by bicycle to make up for the Wigderson family. I’m sure the elderly couple next door could have taken bicycles to church today.

It sure as heck wasn’t going to be me. If I took a bicycle everywhere I went, I wouldn’t be able to use my cell phone. The gasping for air would get me arrested for making obscene phone calls.

If my wife’s trips today were impossible to make by bicycle, imagine what they would be like a month from now. Do Trek bicycles come with a snowplow accessory?

Of course, somebody on Hulsey’s staff should have pointed out the absurdity of ever hoping that Wisconsinites would abandon their cars for 50% of their trips less than five miles.

The authors of the study don’t offer policy prescriptions that would make Wisconsinites and others in the Midwest suddenly get on their bikes and ride 50% of the time for short trips. They only point it is out that it’s possible if we become more like the Netherlands. No wonder Democrats are in love with windmills.

They do let the cat out of the bag by letting us know that converting car lanes to bicycle lanes can cost as much as $50,000 per city block. Portland, OR, spent $10,000 per block on a ten-block stretch of city streets to close a lane to cars and open it to two-way bicycle traffic. The city of Chicago, in the fiscally unsound state of Illinois, just spent $140,000 to make a bike lane on four city blocks, including a bridge.

But the authors are hopeful that cities in the Midwest can become more like their Dutch counterparts because some cities are already “bicycle friendly,” including Milwaukee. Part of being bicycle friendly is making the roadways safer for bicyclists, measured in the mortality rate of bicyclists. If Milwaukee builds a lane across the Hoan Bridge that “friendly” rating might go down.

Milwaukee recently committed to a plan to become even more bicycle friendly. They are going to spend $11.3 million over the next ten years to create more bicycle lanes, and that does not even include land acquisition. The city’s goal is for a bicycle to be used for 5% of all trips less than five miles by 2020.

That’s a long way from Holland’s bicycle use, and certainly nowhere near the 50% that the study’s authors hoped for. Perhaps the Milwaukee Common Council should pass a law requiring residents to wear wooden shoes and plant tulips.

Post-Reform Compensation Plan Ushers in New Era, New Savings

MacIver News Service | October 25, 2011

[Madison, Wisc…] The Walker Administration has unveiled a new Compensation Plan for state employees that replaces the old state contracts. The new plan cracks down on overtime abuses and curbs many work rules and add-on provisions that had previously been negotiated with the former employee unions.

Having already saved an estimated $600 million over the next two years through employee contributions to health and retirement plans, department heads will now be given the freedom to assign overtime in an efficient manner without regard to seniority, a move that will save more than $5 million in one state agency alone.

“Overtime is one of the major areas that will be affected as agencies will now have discretion in determining how overtime is assigned,” Department of Administration Secretary Mike Huebsch wrote in a letter sent to all state employees Tuesday.State Employee Letter re Comp Plan

The new Compensation Plan gives administrative officials discretion over compensation differentials, but there is no bump in base pay or cost of living adjustments that had been commonplace with the union pacts of the past.

In the absence of a contact, a Compensation Plan governs pay and benefits for formerly union-represented state employees, as has always been the case for non-represented employees.

In 2010, state employees worked nearly 1.9 million hours of overtime for which they were typically paid at 1.5 times their regular hourly rates, according to a report released in May by the nonpartisan Legislative Audit Bureau.

The LAB found that premium overtime hours increased from 2009 to 2010, when they were approximately equivalent to 900 full-time staff positions.

Walker Administration officials stress that required staffing at the Department of Corrections and other departments will still be met, but that by not requiring department heads to assign overtime by seniority will save the DOC $5 million.

The LAB noted that until recently, protocols for assigning overtime hours were negotiated by the Office of State Employment Relations (OSER) in collective bargaining agreements with 19 bargaining units that represented approximately 38,100 state employees.

Act 10 removed the requirement that the State of Wisconsin collectively bargain changes to compensation and other work rules. Under changes contained within Act 10, pay and benefit packages are no longer governed by union contracts, with the exception of base pay increases (which are limited to the increase in the Consumer Price Index) for unions that have been certified. To date, no state union has been certified to negotiate for these pay increases.

Tuesday morning the Office of State Employee Relations submitted the Plan to the Joint Committee on Employment Relations.

Last November, representatives of the unions which at the time represented tens of thousands of state employees engaged in a hurried effort to ratify new employee contracts before a new Republican Administration and legislature were sworn into office.

The MacIver News Service obtained copies of the framework of those agreements, and the attempts to steamroll them through a lame-duck session of the legislature were scuttled when former Senate Majority Leader Russ Decker (D-Weston) joined Republican Senators in opposing the plan.

Largely unchanged by the Plan are items like base pay, vacation, holidays, sick leave and sick leave conversion credits.

Previously, if overtime assignments were misapplied contrary to the seniority provisions contained within state employee contracts, the state government could be subjected to penalties.

Taxpayers were on the hook for overtime hours never worked, due to the elaborate seniority-driven work rules regarding the assignment of overtime that remain in place until this new Compensation Plan is in effect on January 1, 2012. (See sidebar)

According to findings of the Governor’s Commission on Waste, Fraud and Abuse, the DOC reported premium overtime paid due to errors in 2010 cost $83,174.61 in penalties. DOC managers had assigned 2,623 overtime hours to less-senior employees and the many of the more senior workers who had been passed over later received pay for hours they never worked.  This practice will be eliminated under the new Compensation Plan.

Certain compensation add-ons and differential pay options were eliminated in the new Compensation Plan.

Additional reforms contained within the new Plan include:

  • The bulletin board provided to post information about union activities can now be used for other matters
  • Taxpayers will no longer finance paid time off for union activities
  • Nearly 38,000 state employees will be eligible for Discretionary Merit Compensation based on Merit, Pay Equity, and Retention.  Before Governor Doyle got rid of DCA’s (similar to the new DCMs) most union contracts prohibited merit from being a consideration
  • One contract allowed Police Communication Operators who work through lunch and bring a lunch a reimbursement of $4 a day for a bag lunch.  This is eliminated
  • Another contract allowed certain nurses and nursing assistants an extra dollar an hour for mentoring.  Mentoring is now considered a part of anyone’s job
  • Most provisions granting extra pay for carrying a beeper were eliminated

Previously, the entire legislature would vote to ratify state contracts with non-amendable up or down votes. Now the Compensation Plan merely needs to be approved by the Joint Committee on Employment Relations.

Recognizing the controversy that surrounded the last frenzied attempt to ratify state employee contracts, Governor Walker has requested that this Compensation Plan be available for employees and the general public to scrutinize for ten days prior to JCOER acts on the measure.

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