Last year was marked by crises in state government public finance. This year is shaping up to be the year of urban fiscal crises. As my colleagues on this blog have been covering the major stories are from places such as Stockton and San Diego, California and Yonkers, New York. This is because many states balanced their budgets last year by pushing the pain down onto localities. Those decisions are now hitting home.
The battle between big city mayors, most of whom are Democrats, and public employees unions is therefore heating up. So far this has been primarily a battle between mayors and teachers unions, which is not surprising since teachers are often a majority of government employees in many jurisdictions. The battles have been taking place in Newark, Cleveland, Boston, Los Angeles, and Chicago. Battles between mayors and teachers unions can be epic. And mayors often lose.
The battle between big city mayors, most of whom are Democrats, and public employees unions is therefore heating up. So far this has been primarily a battle between mayors and teachers unions, which is not surprising since teachers are often a majority of government employees in many jurisdictions. The battles have been taking place in Newark, Cleveland, Boston, Los Angeles, and Chicago. Battles between mayors and teachers unions can be epic. And mayors often lose.
Remember what happened to Adrian Fenty of Washington, D.C.? After backing school's Chancellor Michelle Rhee and an innovative reform agenda, the enraged unions ousted him. Nonetheless, the demonstration effect doesn't seem to be working, as mayors continue to challenge the teachers unions. For instance, in September Rahm Emmanuel got the Illinois state legislature to impose a longer school day on Chicago schools without salary raises. The teachers are now threatening to strike. In Cleveland, Mayor Frank Jackson wants to disregard seniority when it comes to firing teachers. All told, the mayors are taking all the major teacher job protections that reduce the organizational effectiveness and productivity of urban schools.
The root of all this is that the big city mayors can see that their schools cost far too much for the quality of the education they provide. And looking into the future, the fiscal forecast is even bleaker, as many districts have huge pension liabilities. Mayors just can't see how they are going to pay for pensions and operating costs with their current tax base, which in some cases is shrinking.
The root of all this is that the big city mayors can see that their schools cost far too much for the quality of the education they provide. And looking into the future, the fiscal forecast is even bleaker, as many districts have huge pension liabilities. Mayors just can't see how they are going to pay for pensions and operating costs with their current tax base, which in some cases is shrinking.


Hi Daniel DiSalvo,
The truth about the often dishonest tactics used by special interest groups such as the teachers unions need to be exposed in the interest of objectivity and genuine debate. This article in particular makes an excellent contribution to that effort.
**Please note: the now former mayor of Washington, DC who supported the public education reform efforts of Michelle Rhee was "Adrian" Fenty, not "Anthony" Fenty.
-David Grzelecki
Dan,
In a funny way, you've just made the left argument for a greater federal role in redistribution. Of course, you'll probably say that this isn't coming any time soon. But then why not leave this group of people and make the argument more clearly for people who want to hear it, or at least who are open to it. The urban fiscal crisis is, as you suggest, not a necessary condition, but a political one, forced upon states and localities by a federal government allergic to sane tax policy, and ideologically hamstrung since the 1970s.
The innovations of Rhee were often dishonest (see our own Dep't of Education, too) and self-dealing, as has become clear. Most of the privatizing elements of education reform are no better than what they replace. Diane Ravich changed her mind for a reason.
John