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07.13.2009 |
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2009 WSLC LEGISLATIVE
REPORT Bleak
budget just the beginning Citing their concerns about harming Washington’s "business climate" amid a recession, Democratic legislative leaders in Olympia killed most of organized labor’s priority policy bills in 2009, adding insult to an injurious all-cuts budget that targeted the state’s public employees and low-income workers. "Given the revenue shortfall, most of us were braced for bad news on the budget," said Rick Bender, President of the Washington State Labor Council. "But I don’t think anyone was prepared for how hostile the Democratic leaders would be toward labor’s policy agenda. "Clearly, they were more concerned about what corporate lobbying groups call our ‘unfriendly business climate’ than they were about improving Washington’s labor climate for working families," Bender added. This 2009 WSLC Legislative Report and Voting Record chronicles the demise of the Worker Privacy Act, failed efforts to restore and preserve unemployment insurance benefits, the death of collective bargaining bills, and several other prominent labor bills that were killed -- often without votes -- in the face of opposition from business lobbying groups and specifically, The Boeing Co. But it was the 2009-2011 biennial budget that got the most attention. IMPACT ON STATE EMPLOYEES: After refusing to fund state employees’ negotiated contracts, lawmakers had free reign to cut and then renegotiate contracts after the fact, similar to what was done before state employees gained collective bargaining rights. In the end, state employees sacrificed more than $1 billion in pay, pension contributions, health care funding and layoffs to help balance the budget: $448 million in pension payments were deferred. The unfunded liabilities of the older plans were refinanced, actuarial assumptions were changed to reflect smaller raises for state workers in the future—and for shorter futures as legislators postponed recommended changes for longer life expectancies. $240 million in job cuts, about 4,000 full-time-equivalent state employee jobs, were eliminated -- about 7,000 public-employee layoffs total, including K-12 teachers and others not represented by WSLC-affiliated unions. Agencies may mitigate layoffs by negotiating furloughs, reduced hours and voluntary leave without pay to trim their budgets.
$140 million in pay raises and adjustments were sacrificed. State employees’ pay will be frozen for two years, instead of receiving the cost-of-living increases negotiated with the governor. IMPACT ON EDUCATION: Public schools and teachers will lose more than $1.1 billion. Thousands of teachers’ and classified staff jobs will be eliminated. Even before these cuts, our state’s education spending was already near the bottom compared to other states: 45th in the nation in per-pupil spending and 46th in class size. About $352 million was cut from higher education, meaning thousands fewer slots at state colleges and universities next year. Community and technical college tuition will rise 7%, and four-year university tuition will rise 14% in each of the next two years. The University of Washington alone had its funding cut 26%, forcing the elimination of 600 to 800 jobs. The news was just as grim at other state institutions, such as Western Washington University, which must cut 164 jobs next year. "The Legislature brought deep cuts to education and new burdens to thousands of students who aspire to higher education by increasing their tuition by double digits," said AFT Washington President Sandra Schroeder. "We are greatly disappointed in the state’s lack of leadership and deeply concerned about the setback to education." IMPACT ON HEALTH CARE: About $1 billion was cut out of Washington’s health care, public health, and long term care systems. Some 43% of funding -- $255 million -- was cut from the Basic Health Plan. The state later imposed significant BHP premium increases to drive participants away "voluntarily." While this may be preferable to cutting 40,000 people from the BHP (as 25,000 more sit on the waiting list), it will vastly increase the growing number of uninsured. Funding was also cut for adult day care, nursing homes, home-care services, and the General Assistance-Unemployable program.
BUDGET BRIEFS: Public sector job cuts harm economy When Gov. Chris Gregoire unveiled a task force to retain jobs at Boeing and other aerospace companies in Washington, she reminded everyone that we all have an interest in the issue because good-paying Boeing jobs support many other jobs. Sen. Mike Hewitt (R-Walla Walla) echoed that sentiment: "Even though you don’t work at Boeing, you might work at a sandwich shop or grocery store where Boeing employees spend their paychecks. If those jobs go, yours could too." Our lawmakers should be just as concerned about ripple effects in the private sector from disappearing public jobs. Recession-related job cuts are happening at state agencies, school districts, universities, prisons, and county and city governments. Unions and other advocates for these workers tend to talk about the negative effects those job cuts will have on children, safety, economic development, workforce training, and vulnerable citizens who rely on the public services to survive. But certain legislators who weigh each decision by how it affects private-sector businesses should note that public employees also buy sandwiches and groceries—and homes and cars and lots of other things at the same community businesses where Boeing and Microsoft workers shop. Prison closures averted—for now The House and Senate’s original all-cuts budget proposals included the closure of some prison institutions—including the McNeil Island Corrections Center—and juvenile rehabilitation facilities. But after a tremendous outcry from public safety advocates, including the Teamsters Joint Council 28 and other public employee unions that represent the public safety workers targeted for layoff, the final budget closed no specific institutions. Instead, a closure committee is being formed to evaluate which institutions should be closed. However, lawmakers did cut supervision for thousands of criminals with the passage of SB 5288. As originally proposed, the bill would have eliminated 300, or about half, of all parole officers to save an estimated $33 million. It was opposed by the WSLC and the Washington Federation of State Employees, AFSCME Council 28—alongside other advocates for public safety and victims’ rights. Eventually, it was pared back to eliminate less than 100 officers but shifted some job cuts to other areas, including juvenile offender supervision, and it passed into law. Community college faculty bills stymied Students and faculty literally took to the streets this year to demonstrate against proposed budget cuts to the community and technical college system (See budget story, "Impact on Education," at right.) But other efforts supported by AFT Washington to improve working conditions, compensation and retention of college faculty were stymied in 2009. HB 1340 would have changed the law to allow community and technical college faculty to bargain for compensation beyond what is provided by the legislature. Giving colleges the option of supplementing faculty pay to address chronic salary underfunding -- and to retain the best instructors -- wouldn’t have cost the state a dime. SB 5538 sought to convert part-time faculty to full-time positions. Increasing the reliance on part-time faculty was meant to be a short-term solution to the fiscal crisis of the 1980s, but has become ongoing policy. This not only makes it hard for faculty to earn a living, it makes it hard for students to have access to teachers with multiple commitments. Both bills passed their respective policy committees but died without a vote in the Ways and Means Committees. Convention center expansion delayed For all the talk both about making our state competitive and about stimulating the economy, the Legislature dropped the ball on both counts on attracting conventions to our state. The Washington State Convention and Trade Center isn’t big enough. It ranks 65th in the country in terms of its size and ability to accommodate large conventions. Groups have continually reported they wanted to come to Seattle, but they had to choose a larger convention facility in some other city. This has cost our state an estimated $1.2 billion in business. Efforts to expand the convention center are supported by both business and labor, and a feasibility study on the project has recommended expansion. But the State Legislature, led by Senate Democrats, decided not to move forward and instead has required yet another feasibility study. If the Legislature had moved forward with the expansion, the project could have broken ground in 2010, putting 3,000 construction workers to work, and adding up to 3,500 permanent jobs to operate the expanded center. Now, we’re looking at a delay of at least two more years. This was a lost opportunity to stimulate the state economy by putting people to work and to attract tourism -- and tax revenue -- to the state. TESC Labor Center cut past the bone There are countless publicly funded institutions in Washington whose mission is to train the next generation of business managers and executives. The Evergreen State College’s Labor Center is the only statewide higher education outreach program providing direct educational and research services to labor unions and worker-centered organizations. In 2009, early budget drafts eliminated funding entirely for the Labor Center. In the end, the college got just $200,000, cutting its budget by more than two-thirds. "Cutting the Labor Center’s budget by 68% was a clear signal that the Legislature doesn’t hold labor education as a very high priority," said WSLC Secretary-Treasurer Al Link. "The Legislature’s actions are unacceptable and we will work hard to win back funding in next year’s supplemental budget." In the meantime, the WSLC has asked affiliated unions to make contributions to mitigate the cuts and help avoid the layoff of labor educators. Contributions can be sent to the Labor Education and Research Center, TESC, c/o Peter Kardas, 2700 Evergreen Parkway NW, Olympia, WA , 98505. There are many, many more stories included in the print version of the WSLC's 2009 Legislative Report. See the Table of Contents at the top of this page. Also, members of WSLC-affiliated unions can request a free copy of the printed version of the report. 2009 Senate Voting Record -- 2009 House Voting Record Archive of weekly WSLC Legislative Updates from the 2009 session
Copyright © 2009 Washington State Labor Council, AFL-CIO
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