Showing posts with label deficit. Show all posts
Showing posts with label deficit. Show all posts

Sunday, January 17, 2016

AFSCME refusal to negotiate might be the end to end all

Illinoisans are leaving the State Photo/Pixabay/CC0
In a press release, Springfield,Illinois declares the AFSCME refused to seriously negotiate with the Rauner Administration, old news becomes new news again. Lets just face it, the history of the AFSCME shows they have always been a closed-single minded organization with no concern for the taxpayers or financial crisis issues. In 2000 they rejected and refused to negotiate with Gov. Ryan because they wanted a six percent annually wage increase and Ryan offered a 4.3 to 4.5 percent increase annually and zero-tolerance policy on illegal drug use for DOC workers. In 2013 Gov Quinn tried to get state employee compensation in line with what the state can afford but failed because the AFSCME said they would strike it they did not get their way and taxpayers have been paying the price since.

Gov. Rauner proposal consist of programs to help minority employees, keeping the 37.5-hour work week with overtime rate wages happening after completing a 40-hour work week, merit bonuses, salary freeze and health care reforms, all of which has been accepted by 17 other labors unions. AFSCME’s leaders want four-year raises ranging from 11.5 to 29 percent, a 37.5-hour workweek with immediate overtime wages for any minute worked over 37.5 hours, five weeks of vacation, double pay for regular holidays, 2.5x pay for some “super holidays, do not want merit bonuses or any programs for minority employees, and demand insurance that is considered platinum-plus under the Affordable Care Act with taxpayers subsidizing over 80% of the cost. Altogether, AFSCME’s wage and insurance demands would cost taxpayers over $3 billion.

In response to AFSCME’s refusal to seriously negotiate, and in accordance with the tolling agreement, the Rauner Administration is now asking the Labor Board to determine whether or not the parties are at an impasse. It is little wonder why Illinoisans are moving out of the State as they see their income dropping due to increased taxes and fees, while state employees earnings have grown over five times faster. Deficits, higher taxes and debt has hurt Illinois and the AFSCME's refusal just might be their last refusal as more and more Illinoisans are becoming dependent on the government, soon there will be no one to pay for their lavish benefits.

Monday, September 23, 2013

CPS spending without any money

Heiwa elementary school %u5E73%u548C%u5C0F%u5B...
 (Photo credit: Wikipedia)
Chicago Public Schools 2013 budget projects a $431.8 million deficit. State funding was cut by $56.8 million and GSA funding was cut by $44 million.  Its largest federal revenue source, Title 1 declined from $9.7 million to $286.6 million.  To make up some of the difference they plan on using their reserves, funding they have put aside for that rainy day, money that once its gone, its gone.  This does not even include the nearly $8 billion in pension debt.
Mayor Emanuel and the Chicago Public School Board, laid off nearly 3000 Chicago public school employees, 1456 of them teachers, and they then closed 50 Chicago schools because of the financial crisis.  Oh yes, they also cut $9 million from the Early Childhood program. 

Yet, this week Mayor Emanuel announced the plans to build a new $35 million elementary school, a $15 million school annex to be built on Wildwood Elementary on the north side, and refurbishing of East Garfield Park high school and two feeder schools, at the price tag of $24 million. And they just put out over $16 million on their school safe passage program.

With all the spending of money, it's hard to believe that the Chicago public school system is being run on a deficit. It's hard to believe that CPS is projecting only a $1 billion deficit for 2014.  And never mind about that fact that CPS just had their credit rating lowered again and is very close to a junk-bond rating that means higher interest if anyone would even borrow them money.

2014 is looking even more insolvent as they keep adding more and more debt without no way of paying. Even if they push to raise property taxes again – this last increase only provided $62 million in new revenue for 2013 – it would not be enough. And why should taxpayers who do not or have never used the system have to pay without any benefits?  Maybe it is time to start charging tuition and putting the burden more on those using the system and getting all the free benefits from it or maybe everyone on the Chicago School Board should work at a salary of only $40,000 a year – maybe the struggle of living on those wages would be a constant reminder of the struggle of the taxpayer.