Issue 2: 'mostly false' ad and latest 'honest look'

The Plain Dealer in Cleveland, through their PolitiFact Ohio, took a look at the We Are Ohio claim that "Says that politicians who approved collective bargaining restrictions for public employees "exploited a loophole exempting themselves from Senate Bill 5." They determined the claim is mostly false.

The claim in the ad does contain an element of truth -- legislators are exempted from several provisions of SB 5.

But the portion of the claim that they’ve exploited a loophole leaves out important details that would give a different impression. Those details include that lawmakers have long been exempt from Ohio’s collective bargaining law, that they already pay the same percentages for medical and pension benefits as SB 5 would require and that their wage is set by statute.

On the Truth-O-Meter, a statement that has an element of truth but ignores critical facts that would give a different impression rates one way: Mostly False.

Additionally, the fifth video in a series by GOHP Blog, "An Honest Look At Issue 2" is out. It examines some of the other erroneous claims by Issue 2 opponents (We Are Ohio) and provides the truth - especially in terms of job creation in Ohio since Gov. John Kasich took office.

Myths about collective bargaining and SB 5

Yesterday, Ohio unions filed over 1 million signatures to put a repeal of Senate Bill 5, the collective bargaining reform bill, on the ballot. There already has been, and will continue to be, distortions about what the bill contains and what its impact on Ohio, Ohio taxpayers and unions will be.

The Buckeye Institute has done some terrific work laying out the 'myths' and clarifying SB 5. Just recently, they released a short video that explains The Fifteen Myths of Collective Bargaining. These are from their works released over the past several weeks, Five More Myths About Collective Bargaining and Senate Bill 5 and the Top Ten Myths About Collective Bargaining and Senate Bill 5.

Please read and watch - and then share with family, friends and neighbors. It is likely, with over a million signatures, that the repeal will be on the ballot in November and we need every voter informed on the issue.

To view the video visit www.buckeyeinstitute.org.

To view the five new myths click here.

For the original ten myths click here.

Why union members should love S.B.5 seniority provision

Yesterday the House passed Senate Bill 5, the collective bargaining bill, and shortly thereafter their version received approval in the Senate. The bill now sits on Gov. John Kasich's desk awaiting his signature.

One of the provisions in the bill deals with layoffs and seniority and contains language (in multiple places) stating:

When a reduction in force is necessary, the (governmental entity) shall not use an employee's length of service as the only factor to determine whether to lay off the employee.

This means that all public sector union employees will first be judged on their performance and value to an organization - not how long they've been employed - and if you're a newer employee who does a good job, you have a better chance of keeping your job now that S.B. 5 has passed.

Quite some time ago, as host of WSPD's Eye On Toledo show, I interviewed Toledo Police Patrolman's Association President Dan Wagner during a time when the city was considering laying off police. The city was asking for cuts and the TPPA was opposing them. I asked him: if it came down to layoffs for some of his members versus an across-the-board cut, which would his members choose? His reply was probably one of the most honest statements ever made by a union president: "Sadly, I think they'd choose the layoffs."

This, to me, goes against the entire 'one-for-all' attitude that I thought unions were supposed to embrace. They certainly tout the 'collective' nature of their organization and relationship, until it comes to certain issues like layoffs versus cuts. In the end, the people in the union who 'have' will sacrifice the newer members in order to keep what they've got. Dan told me later he knew I'd never let him forget that statement, but it's nothing he should be sorry for saying - though he might be sorry his members thought that way.

But with the passage of S.B. 5, that issue goes away. Now, public employees don't have to worry about how long they've been employed; they only have to worry about their performance and their value to the city. This, alone, is reason enough for union members to love S.B. 5.

The consequence of this change in decision-making cannot be overlooked. Without the guarantee of seniority, unions may find their members are more willing to consider across-the-board cuts than they were in the past. If the older members have no assurances that they will keep their jobs, they'll be less confident in risking actual layoffs, making them more amenable to other solutions such as concessions and cuts.

This is good for the taxpayer and it removes the ever-present gamesmanship of politicians who always threaten the most untenable of layoffs (in police and fire) when they face budgetary decisions they don't want to make or when they have tax increases on the ballot they want to pass.

Additionally, S.B. 5 makes the layoff process easier for cities. Since most unions have 'bumping' rights (a data entry person laid off, for example, in the police records bureau, has the right to 'bump' a less-senior person in the data entry section of the tax department), cities will no longer have to worry about the musical chairs and the headaches of such a process.

But this issue isn't final - yet. Democrats and unions are already mobilizing to take the matter to the voters by putting the law on the ballot as a referendum. They've got plenty of time to organize their supporters, but I don't know that they'll find much success on election day.

The state switched from Democrat control to Republican during the last election despite the spending by unions. The people in office now were put there with the expectation that they would address the out-of-control spending and the huge unfunded obligations the states have. A majority spoke last November and they're not likely to change their minds so quickly, especially if the state office holders continue to do what they were elected to do.

And not all union members are Democrats. I know, that's a hard fact to comprehend in light of the perception union leaders and Democrats advance, but it's true. And even some of the union members who are Democrats are not always in favor of the way their unions operate - especially if they're the new member who was at risk of losing their job simply because of a calendar.

While I won't underestimate the ability to get the matter on the ballot - or the mobilization of their supporters - I don't believe the unions have the support of the majority of Ohioans in this regard, otherwise, we wouldn't have the bill in the first place.

Ohio House passes Senate Bill 5

Press Release from Ohio House Republicans:

Ohio House Passes Senate Bill 5 to Benefit the Middle Class, Save Jobs

House Democrats offered no amendments and provided no constructive input during lengthy process

COLUMBUS—After more than 60 hours of testimony and more than 200 witnesses over a period of nearly two months, Senate Bill 5 today passed from the Ohio House of Representatives. This legislation restores fairness for Ohio’s taxpayers and helps prevent mass layoffs of dedicated public employees by giving local governments the flexibility to manage their own finances.

Senate Bill 5 wholly reinvents the relationship between public-sector unions, local governments and the taxpayers. With many local governments threatened by bankruptcy and unable to control their costs, many communities may suffer massive tax increases or widespread layoffs just to keep public services solvent. This legislation—which restores Ohioans’ influence over the government and its employees that they pay for—aims to save these vital jobs while also lowering the tax burden on the middle class.

“Today, this House has taken an unprecedented step toward public policy that respects all Ohioans, especially our taxpayers and our hardworking middle class,” said Speaker of the Ohio House William G. Batchelder (R-Medina). “Senate Bill 5 protects the collective bargaining rights of Ohioans while also giving local governments an additional tool in the toolbox as they balance their budgets. Truly the most important thing we can do is ensure that our public services remain of the highest quality and that we give employers the ability to maintain and reward their employees—rather than resorting to mass layoffs due to ironclad contracts.”

Despite 13 committee hearings on the legislation, the House Democrats offered no amendments to the bill. Furthermore, in Tuesday’s Commerce and Labor Committee, the minority caucus voted unanimously against an amendment that would allow public safety personnel to bargain for safety equipment.

In addition to the Republican amendment to permit bargaining for safety equipment, House modifications to Senate Bill 5 include provisions that permit communications between bargaining parties, clarify that death benefit amounts for spouses are not affected by changes in the bill, and eliminate jail time as a possible penalty for striking.

The House version also removes the use of ticket quotas to determine performance-based pay for law enforcement officials, eliminates automatic union deductions without written consent, and prohibits “fair share” fee penalties as a requirement to be a non-union member within an organization. Additionally, under certain conditions, labor disputes may be settled by voters at the ballot, with last best offers of each bargaining party considered and resolved by Ohio’s taxpayers.

“In this bill, we have successfully maintained the bargaining rights of our communities’ most important public workers—those who educate our children, protect our families and homes, and keep our neighborhoods clean and thriving,” said State Representative Joe Uecker (R-Loveland), who serves as chairman of the House Commerce and Labor Committee. “At the same time, we’ve updated Ohio’s collective bargaining law, which for nearly three decades has rampantly expanded and put an undue strain on our local governments. We have found a delicate balance that will respect the taxpayers, save state and local jobs, and improve the public services we rely on each day.”

To specifically advance the quality of education in Ohio’s classrooms and reward teachers, S.B. 5 establishes standard state guidelines to determine educators’ compensation and other terms of employment. While 50 percent of educator evaluations must be based on student performance as developed by the Ohio Department of Education, local school boards have the authority to establish objective measures related to quality of instructional practice, communication and professionalism, parent/student satisfaction, and other relevant factors.

As passed, S.B. 5 is expected to save local governments more than $1 billion while ensuring that public employees can still collectively bargain under a better system with negotiations, mediation and fairness.

“The economic reality is that here in Ohio, we are looking down the barrel of an $8 billion budget hole that—without prudent reforms and a commitment to reshaping the way Ohio does business—would simply not have disappeared on its own,” said Speaker Pro Tempore Lou Blessing (R-Cincinnati). “It requires difficult decisions, and we’ve taken a step toward sustainable changes that will benefit us today and our children tomorrow. As local governments fight to stay afloat amid this financial storm, we have protected our communities and the indispensible services that our public employees give us.”

S.B. 5 will now return to the Ohio Senate for a concurrence vote.

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Update on S.B. 5

The Ohio House is scheduled to vote on Senate Bill 5 today, the collective bargaining law, after amendments and discussion yesterday.

One of the amendments that was passed included this one relating to the automatic payroll deduction for political contributions:

No public employer shall agree to a provision that provides for the payroll deduction for any contributions to a political action committee using any other method than the method prescribed in sections 3517.082, 3517.09, and 3599.031 of the Revised Code.

This is good news for union members, but bad for the unions themselves. Currently, union members do not have to contribute to the political action committees of their unions, but some (not all) include that as part of the dues structure. Members who don't want to participate can request a refund of the amount of their dues not spent directly on their representation but, fortunately for the unions, many individual members do not realize this and don't ask for the refunds.

According to the 1851 Center for Constitutional Law, which supported the amendment:

Ohio previously prohibited such automatic payroll deductions. In 1998, a state court of appeals struck the prohibition on First Amendment grounds. However, in 2009, the U.S. Supreme Court explained that such scrutiny is not appropriate: "while in some contexts the government must accommodate expression, it is not required to assist others in funding the expression of particular ideas, including political ones."

Again, this is good news for union members who won't have to fund political candidates and causes they don't support.

Quotes of the Day - Michigan

From a Wall Street Journal article on the disaster that is Michigan's finances: "Michigan's War on the Middle Class" by William McGurn (emphasis added).

Michigan today is not a struggling state like California or New Jersey or even Wisconsin. It is a basket case, with worse to come if things do not change quickly—especially in the relation of the public to the private sector.

"Many of the protesters seem to think the war is between rich and poor," says Michael LaFaive, director of the Morey Fiscal Policy Initiative at the Michigan-based Mackinac Center. "But the real class war today is between government and the people who pay for it. And the government's been winning."

and this:

For every dreary statistic, Michigan has a real advantage: a large freshwater coastline, a farm sector that could be an even larger export industry, a rising health-care industry, energy reserves waiting to be tapped, and affordable communities. The point here is not that if you build it they will come. The point is if you get off their backs, they will come build it themselves.

David Littmann, an economist and colleague of Mr. LaFaive at Mackinac, says he's deeply skeptical of whether Mr. Snyder's reforms go far enough. But about Michigan's potential he has no doubts, if government would only let the market decide.

"If we created a climate where the risks and rewards were attractive to capital, we'd find entrepreneurs from all over the world finding their way to Michigan," he says. "They in turn would be a catalyst for other industries we can't even imagine now—and the kind of Michigan that could be even more dynamic than it was when the auto industry was at its peak."

FreedomWorks joins effort to pass S. B. 5

Press Release:

FreedomWorks, Statewide Tea Party Leaders to Support Senate Bill 5 and Governor Kasich

WHAT: FreedomWorks, Ohio Tea Party groups and limited-government activists will host a press conference at the state capitol to defend the taxpayers of Ohio and to offer support for Senate Bill 5 (SB5).

Following the press conference, grassroots leaders from across the state will deliver hundreds of letters of support from the citizens of Ohio, urging their state Representatives to vote YES on SB5. Senate Bill 5 is a piece of legislation that would remove automatic pay raises, introduce merit-based pay and reform the collective bargaining power of state and local employees.

WHEN: Tuesday, March 8, 2011 at 10a.m.

WHERE: Capitol steps on the North Plaza of the Ohio Statehouse, 1 Capitol Square, Columbus, Ohio 43215

WHY: FreedomWorks strongly believes that Senate Bill 5 is the first critical step to alleviating Ohio’s budget crisis and lay the foundation for future job growth. Currently, the state of Ohio has a $10 billion deficit for 2011, and shed over 600,000 private sector jobs in the last ten years.

Governor John Kasich will be the latest recipient of the FreedomWorks "Legislative Entrepreneur Award," for his dedication to restore economic competition in Ohio, rein in spending and shrink a bloated state budget.

As the debate picks up steam in the Ohio House, FreedomWorks will continue to mobilize members, along with conservative, limited-government activists in Ohio on FreedomConnector- a revolutionary, new online mobilization tool designed to quickly apply concerted pressure on elected officials- to call and email targeted Ohio House Members in support of SB5.

In addition, FreedomWorks will be organizing numerous events on the ground throughout Ohio in the weeks ahead to advocate the passage of SB5.

“Ohio is in a vicious cycle where the private sector shrinks and the public sector liabilities grow, forcing businesses, jobs, and citizens to become economic refugees to the Sunbelt states. We applaud Governor Kasich’s bold efforts to reverse nearly 50 years of economic stagnation and to build a foundation of growth and recovery in Ohio. It’s our mission to unite and mobilize a grassroots constituency in support of legislative entrepreneurs like Governor Kasich who look for long-term solutions instead of nearsighted gimmicky fixes.” – Matt Kibbe, President of FreedomWorks

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Both sides of SB 5 - Ohio's collective bargaining bill

I wanted to share with you this link that features Matt Mayer, president of the conservative think-tank The Buckeye Institute (who testified in favor of Senate Bill 5) and Brian Rothenberg, executive director of Progress Ohio (a coalition of progressive groups) debating the issue.

To view the half-hour program, go here.

Quote of the Day - public sector unions

Today's Quote of the Day from Jonah Goldberg goes along with my post from last June: Public unions' symbiotic relationship with government:

"Private sector unions fight with management over an equitable distribution of profits. Government unions negotiate with politicians over taxpayer money, putting the public interest at odds with union interests and, as we've seen in states such as California and Wisconsin, exploding the cost of government. The labor-politician negotiations can't be fair when the unions can put so much money into campaign spending. Victor Gotbaum, a leader in the New York City chapter of AFSCME, summed up the problem in 1975 when he boasted, "We have the ability, in a sense, to elect our own boss.""

Buckeye Institute responds to Innovation Ohio report

There's a new left-leaning think tank in Ohio called Innovation Ohio. It was started by Janetta King, who was chief of staff for policy for former Ohio Gov. Ted Strickland. Yesterday, they issued a report critical of S.B. 5, the collective bargaining bill, which concludes:

There is no evidence that ending or eviscerating collective bargaining would have a salutary effect on student success in the future, or that ending it is necessary to institute still-needed reforms. In fact, ending collective bargaining could and likely would have unintended negative effects.

Nevertheless, there is no denying the severity of Ohio’s budget crisis, the difficult financial straits of many local school districts, or the likelihood that further sacrifice will be required, not just from teachers, but from all Ohio citizens. While Innovation Ohio deeply believes that future sacrifice should be shared fairly and not limited to those at the middle and lower income levels, that is a subject that goes beyond the scope of this analysis.

What can be concluded from this analysis, however, is that past experience clearly shows that necessary sacrifices and reforms can be achieved through the collective bargaining framework that has existed in Ohio since the Reagan Administration.

Today, the conservative-leaning Buckeye Institute issued the following statement in response:

A Short Response to the Innovation Ohio Report

"Ohio Teachers and Collective Bargaining: An Analysis"
Matt A. Mayer, President February 28, 2011

First, we welcome Innovation Ohio to the public policy debate. Innovation Ohio joins the existing pack of progressive think tanks-Policy Matters Ohio, ProgressOhio, the Center for Community Solutions, Economic Policy Institute, and the Center for Working Class Studies-advocating for the same set of policies for Ohio. We will continue to do our best to keep up with these groups.

Next, we are perplexed that Innovation Ohio (and the Ohio Education Association), given the reportʼs findings that teachers make more outside of collective bargaining, does not support Senate Bill 5. Specifically, the report found that "the BLS data reveal that the more states erode teachersʼ rights to collectively bargain, the more it likely will lead, on average, to higher salary increases." Perhaps they believe teachers would rather have more process than higher pay.

Finally, the report found that "Ohioʼs kindergarten, elementary, middle school and high school teachers saw their salaries, on average, drop 3.8% between 2008 and 2009." This finding, based upon a limited national survey, conflicts with the more comprehensive school district data from the Ohio Department of Education.1 The ODE data shows that, instead of pay cuts, teachers across Ohio saw their median pay increase from 2008 ($49,951.40) to 2009 ($50,557.50) by $606.00, or 1.2 percent. Ohio teachersʼ median pay rose even higher from 2009 to 2010 ($52,001.00), as the median pay jumped by $1,443.50, or 2.9 percent.

As the financial projections of the 613 school districts show, by 2015, 91 percent of Ohioʼs school districts will reach severe deficits. Compensation packages will swallow 96 percent of projected revenues. With local taxes already high, homeowners across Ohio likely will not support increased operational tax levies. We look forward to seeing our friends on the left and the OEA provide solutions to this mounting crisis. For a district-by-district financial review, please see the easy-to-read charts at http://buckeyeinstitute.org/reports/school-districts.

1 Ohio Department of Education, District Data - Teacher Information 2008-2010, Interactive Local Report Card Home (accessed on February 28, 2011) available at http://ilrc.ode.state.oh.us/Downloads.asp.

Quote of the Day - government unions

From my friend, and fellow Ohio blogger, Matt Hurley at Weapons of Mass Discussion, comes today's quote on collective bargaining by public sector employees:

The desire of Government employees for fair and adequate pay, reasonable hours of work, safe and suitable working conditions, development of opportunities for advancement, facilities for fair and impartial consideration and review of grievances, and other objectives of a proper employee relations policy, is basically no different from that of employees in private industry. Organization on their part to present their views on such matters is both natural and logical, but meticulous attention should be paid to the special relationships and obligations of public servants to the public itself and to the Government.

All Government employees should realize that the process of collective bargaining, as usually understood, cannot be transplanted into the public service. It has its distinct and insurmountable limitations when applied to public personnel management. The very nature and purposes of Government make it impossible for administrative officials to represent fully or to bind the employer in mutual discussions with Government employee organizations. The employer is the whole people, who speak by means of laws enacted by their representatives in Congress. Accordingly, administrative officials and employees alike are governed and guided, and in many instances restricted, by laws which establish policies, procedures, or rules in personnel matters.

Particularly, I want to emphasize my conviction that militant tactics have no place in the functions of any organization of Government employees. Upon employees in the Federal service rests the obligation to serve the whole people, whose interests and welfare require orderliness and continuity in the conduct of Government activities. This obligation is paramount. Since their own services have to do with the functioning of the Government, a strike of public employees manifests nothing less than an intent on their part to prevent or obstruct the operations of Government until their demands are satisfied. Such action, looking toward the paralysis of Government by those who have sworn to support it, is unthinkable and intolerable. It is, therefore, with a feeling of gratification that I have noted in the constitution of the National Federation of Federal Employees the provision that "under no circumstances shall this Federation engage in or support strikes against the United States Government."

~ President Franklin Delano Roosevelt (D)

Toledoans and changes to Ohio's collective bargaining law

Toledoans are going to Columbus to partake in the discussion of changes to Ohio's collective bargaining law - Senate Bill 5. I noticed a Facebook post from the Toledo Police Patrolman's Association that they have a bus going down tomorrow and I received this press release from the City of Toledo:

Deputy Mayor Herwat to testify before Ohio Senate regarding collective bargaining law

Toledo Deputy Mayor Steve Herwat will testify before the Ohio Senate Insurance, Commerce & Labor committee this afternoon regarding proposed changes to Ohio’s collective bargaining law.

Herwat will represent the Bell administration in advocating for changes to Ohio’s collective bargaining law that reflect our fiscal times. His testimony will not advocate for or against specific proposed changes in Senate Bill 5, but will outline the City of Toledo’s experience over the past year with collective bargaining in the face of scarce financial resources. He will encourage the Senate to consider and address those issues in the legislation as they affect local governments and taxpayers across Ohio.

The Senate Insurance, Commerce & Labor committee meets this afternoon at 2:30 p.m. in the South Hearing Room at the Ohio Statehouse.

A PDF copy of Deputy Mayor Herwat’s proposed testimony is attached to this release.

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His prepared statement can be viewed here.