Yesterday, Wisconsin governor Scott Walker toured the state, touting new numbers that show savings of over $1 billion since he implemented collective bargaining changes for state and local government employees. Last year, Walker signed a new law requiring government employees to begin making contributions toward their own pension accounts, and increasing the amount government workers must pay for health insurance, to 12.6% of their premium. He now faces a recall election as a result of opposition to the law by public employee unions.
Among the savings realized from Walker's reforms (via the Milwaukee Journal Sentinel):
- $226.3 million in annual saving from higher pension contributions from state workers and $82.4 million in saving from state workers paying more for their health insurance. That saving is verified, but it also included $40.9 million in programs that are paid for by federal taxpayers, so the state won't necessarily be able to keep that money.
- $464 million in yearly saving from local government workers paying more for their pensions. That saving also is verified but could include other sources besides those coming from state taxpayers, so again the local governments would not necessarily get to keep all of that saving.
- $65 million in saving this fiscal year on health coverage by raising employee payments, similar to co-pays for employees for non-preventive care. That saving is verified.
- An undetermined amount of saving for requiring workers to have five years of service and at least two-thirds full-time employment to qualify for a state pension.
Walker's office also released press accounts of over $300 million in savings from local governmental districts that were able to cut costs by, for instance, opening their health insurance contracts up for public bidding.
Walker's changes were part of an effort to close a $3.6 billion budget deficit last year. Both of his recall election opponents, Milwaukee Mayor Tom Barrett and former Dane County Executive Kathleen Falk, have declined to say how they would have balanced the budget, or how they would raise enough money to offset repealing Walker's changes, as they have both vowed to do.
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