Lawmakers surrender state services and employee benefits first 

At least 40 states are dealing with fiscal problems, ranging from mildly depressed revenues to severe shortfalls, according to Stateline.org, which means sound policy will be competing with political interests in 2002, as state and federal lawmakers struggle between hard legislative choices and their November 2002 reelections.

For months, both state and federal lawmakers have been priming voters for their upcoming legislative tactics. In states facing fiscal deficits, public services and public employee pay and benefits are being targeted for savings. In some states, such as Illinois, Kansas and Maryland, lawmakers are taking that tact one step further, calling for hiring freezes and layoffs.

Compounding the legislative scene is the inherently political process of redistricting--the process of redrawing district lines for state and federal office based on the 2000 U.S. Census. In states including Alaska, Colorado and Connecticut, redistricting plans have been challenged and are pending court review.

This year's legislative and political terrain is familiar to the FPE/AFT, and the union's locals are prepared to ensure that lawmakers deliver--deliver on previous commitments made to the public employees represented by the FPE/AFT. But the only way the union's locals can hold lawmakers responsible for policy decisions is if FPE/AFT union members are involved in union efforts to support and oppose policies. Such activism demonstrates to our nation's elected officials that labor will hold them accountable--that labor will vote in November 2002.

"It is absolutely necessary for unions to be [in the state capitols], speaking up for workers and for the services they provide," says Brian Curran, legislative director of the FPE/AFT-affiliated New York State Public Employees Federation (PEF), "because it is too easy for business groups and politicians to simply say, 'We need to cut government and cut government services to deal with the deficit.' In many cases, unions are the only voice for the workers."

Illinois

First, Illinois Gov. George Ryan imposed a hiring freeze, a ban on equipment purchases and travel restrictions to save the state money. Those austerity plans have ballooned, just like the state's budget shortfall, which is an estimated $500 million. Now Ryan is talking about cutting state employee health care benefits, as well as imposing a one-day unpaid furlough of the state's 60,000 employees--or, even worse, layoffs.

At press time, the FPE/AFT-affiliated Illinois Federation of Public Employees (IFPE) was in negotiations with the governor's office over the furlough plan, which Gov. Ryan says would save the state $8 million. One IFPE question that remains to be answered is: How will a furlough plan that includes state employees who are not paid out of the general revenue dollars help the state financially? "Many of our members are not paid out of the general revenue dollars," says Gary Leach, IFPE executive director. "They are paid out of designated funds like user fees, which cannot be put in the general revenue fund" if unspent.

Meanwhile, in a victory for state employees, lawmakers dealt Gov. Ryan his first legislative defeat of 2002 in January when they rebuffed his request for the power to cut up to 5 percent from the agency budgets under his control.

"Basically, issues regarding the budget and maintaining services" will dominate the IFPE's legislative agenda this year, says Leach, noting that the union is in a "defensive mode because of the budget shortfall restrictions." On a positive note, Leach emphasizes that the IFPE is in the second year of its four-year contract with the state. In fact, Leach says, "I would hate to be in negotiations right now because of the downturn of the economy. I don't think we would get our negotiated 3.75 percent increase that is slated for July 2002" without the contract.

Kansas

Politics is taking precedence over smart policy in Kansas as the state's lawmakers selectively ignore Gov. Bill Graves' call for tax increases to help the state shore up its shrinking treasury. Term limits preclude Gov. Graves from seeking reelection in November 2002.

"We are looking at an estimated $426 million shortfall," says Betty Vines, president of the FPE/AFT-affiliated Kansas Association of Public Employees (KAPE), "and they are going to do anything in the world they can do that does not include a tax increase. So if it means cut everything to bare bone, that is what they are going to do."

In addition to layoffs, state employees in Kansas have been warned that health insurance rates may possibly increase by 15 percent, and there also has been talk of extending the salary freeze for another year.

KAPE has already begun to address these issues. During a December meeting with the governor's chief of staff, Vines says the union talked about the need for the state to keep its promise to employees that step increases would resume. Health insurance and the formation of labor-management committees also were discussed.

Meanwhile, KAPE will work with lawmakers for alternatives to layoffs, such as buyouts that would include affordable health insurance for employees who choose to retire. "Most people in Kansas don't retire," Vines says, "and that is because of health insurance." Vines also says the union is going to promote worker-friendly policies, such as added holidays, additional leave and alternative work schedules, which will help the state recruit and retain employees in the long run.

Wisconsin

Wisconsin's estimated $1.3 billion budget deficit is not deterring the FPE/AFT-affiliated Wisconsin Professional Employees Council's (WPEC) agenda in its current contract negotiations with management. WPEC president Art Foeste predicts: "We are going to do surprisingly well considering the economic times." Specifically, the union is trying to accelerate the rate at which employees accrue vacation and maintain healthcare benefits.

Meanwhile, Wisconsin lawmakers have proposed a spending freeze for government as well as freezing local property taxes. The former would negatively affect the ability of state employees to do their jobs; the latter would compound the fiscal crisis by further eroding revenue.

New York

New York's budget shortfall is estimated at $1 billion this year--and expected to grow to a staggering $5.7 billion in the next fiscal year; and Gov. George Pataki's response has been a proposed reduction in force of 5,000 employees. At press time, PEF was waiting for the release of Gov. Pataki's budget proposal, which would allow the union to target specific proposals that would negatively affect its membership. As a pre-emptive strike, however, PEF initiated a media campaign in early January to reinforce the value--and necessity--of government services.

Among PEF's legislative priorities for 2002 is pension improvements in the form of tier equity, says Curran. "We have been pursuing a number of initiatives to reduce or eliminate differences in benefits among the different tiers," he says. "There have been a number of bills passed over the last six to eight years, but there still are significant differences."

Also pending are union proposals to limit mandatory overtime for nurses; a bill that calls for safe staffing levels of nurses; and a healthcare whistleblower bill.