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Bayer: Government in crisis *** Updated x1 ***

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AFSCME refused to endorse anyone in the governor’s race this year and a showdown has been expected between the union and Gov. Blagojevich. Henry Bayer took the first post-election shot yesterday.

In a speech laced with enough purported monetary injustice to get any working stiff’s blood to a rolling boil, AFSCME Council 31 Executive Director Henry Bayer described the state of Illinois government Wednesday night at Southern Illinois University Carbondale.

The Cliff Notes diagnosis: State government is in an all-out crisis.

Bayer, who oversees 200 unions covering 44,000 employees in Illinois, spoke at the Student Center in a speech presented by the Paul Simon Public Policy Institute. The short but not-so-sweet presentation of public policy according to AFSCME slammed re-elected Gov. Rod Blagojevich for allowing a $3 billion-a-year budget deficit into his financial plans, lamented the $48 billion deficit plaguing the state pension system as well as understaffing at many state agencies and kicked the already down former Gov. George Ryan for his early retirement incentive, which ushered the exit of 11,000 state workers in 2001 but never quite re-staffed the empty positions.

Despite the campaign promises both voters and political candidates have likely forgotten one week after the election, Bayer said the current roster of state leaders doesn’t appear ready to take on what he called a “structural deficit” that exists in the Illinois revenue system. […]

Blagojevich is holding fast to his renewed no-tax-increase promise for the upcoming second term, and Bayer indicated during both his speech and the question/answer session that followed, the administration will have no shortage of “schemes” to prop up increased government spending with one-time funding sources - a tactic Bayer described simply as “bad public policy.”

“It’d be one thing if we were a Third World country, if we didn’t have the resources � but in fact we do if you look at what’s going on in the economy,” he said.

Thoughts?

*** UPDATE *** From an AFSCME press release:

Weighing in on the much-debated proposal to raise the statewide minimum wage, the largest union of public service workers in Illinois says the hike should be accompanied by a pay increase for the very low-paid employees of community-based nonprofit agencies that provide direct services to individuals with developmental disabilities.

The American Federation of State, County and Municipal Employees (AFSCME) Council 31 has made a pay increase for direct-care workers its top legislative priority in the General Assembly’s current veto session.

“We support the proposal to raise the minimum wage and index it to inflation,” AFSCME executive director Henry Bayer said. “At the same time, we think the General Assembly has an opportunity to lead the way to higher pay by raising the rate at which it reimburses community-based nonprofit agencies for serving individuals with developmental disabilities.” […]

More than 15,000 individuals with developmental disabilities are served in community settings by agencies that receive almost all of their income from state reimbursements. But those reimbursement rates are too low, too infrequently adjusted, and don’t keep pace with inflation. As a result, most direct-care workers today have incomes below the federal poverty line.

“Low pay leads to high turnover in these agencies, which in turn places a cost burden on the employer and drives down the quality of care available to consumers,” AFSCME director Bayer said. “As lawmakers consider raising the minimum wage, they must make sure direct-care workers aren’t forgotten. If other private employers raise wages but the state doesn’t keep its reimbursement rates ahead of the curve, turnover among the direct-care workforce will only get worse.”

posted by Rich Miller
Thursday, Nov 16, 06 @ 9:42 am

Comments

  1. So… the question - what is the way to solve this “structural deficit”?

    Comment by DeeDoop Thursday, Nov 16, 06 @ 9:46 am

  2. Not a real good way to endear yourself to the governor after campaigning against him.

    I hope the governor really screws him. Should be a great 4 years for AFSCME!

    If I was an AFSCME member, I woudl seriously have to re-think my leadership options. I mean, this guys words are screwing the entire union for the next 4 years.

    Comment by Roomie Thursday, Nov 16, 06 @ 9:53 am

  3. Well, the obvious solution out of this mess is to spend more money, duh. Spending more money is always good policy.

    Would the “Paul Simon Public Policy Institute” advocate anything less?

    Comment by Leroy Thursday, Nov 16, 06 @ 9:54 am

  4. State workers at agencies where staff shortages are an issue are not going to have a problem with AFSCME making an issue of it. Our headcount here is down 50% due to a completely inept, rude director who hasn’t the pull to get the positions filled again once people leave. In addition, we’ve lost so much of the braintrust here, it’s scary.

    Comment by Just me Thursday, Nov 16, 06 @ 10:02 am

  5. Henry made a big mistake in not supporting the Governor after the state negotiated with his rank and file one of the best state employee contracts in the country. Don’t come back whining in two years, Henry, if you are still in office. You, of all people, have a lot of nerve talking about bad public policy!
    On another labor note, did the operating engineers take down their obnoxious Topinka sign yet?

    Comment by Bill Thursday, Nov 16, 06 @ 10:07 am

  6. Just me,
    Braintrust????!!???
    Ahahaha

    Comment by Bill Thursday, Nov 16, 06 @ 10:09 am

  7. My thoughts:

    1. He’s right on all points.

    2. Unfortunately, nothing will change.

    Comment by Left Leaner Thursday, Nov 16, 06 @ 10:19 am

  8. What would we do without unions? Perhaps if they had worked for TOpinka or Whitney, they’d have more hope.

    Comment by Wumpus Thursday, Nov 16, 06 @ 10:31 am

  9. Not a fan of Rod or JBT, but I’m even more not a friend of Mr. Bayer. He is luucky that his folks get a pension. How about joining the rest of the world in freezing/terminating the pensions, and converting to 403(b)/401(k) plans? Save us taxpayers money now!! Boy, would I love to see that!

    Comment by Niles Township Thursday, Nov 16, 06 @ 10:41 am

  10. Bill says AFSCME should have just fallen in line behind Rod on the sole basis of a contract the union fought tooth and nail to win two years ago? That’s typical Blagojevich hackery talking: “We grease your palm, then you shut up.”

    I guess it works for the fat and happy insiders who built that bazillion dollar campaign war chest, but I’m glad AFSCME doesn’t play that way. Bravo to them.

    Bayer is absolutely right about the structural deficit, of course, and obviously he has the guts to speak the truth. (More than we can say for far too many of our state’s supposed opinion leaders.)

    Oh and while I’m here, maybe one of the resident Rod sycophants can explain—How exactly does the gov’s mantra of doing all things to benefit “the hard-working people of Illinois” square with his utter contempt for public employees?

    Comment by Reality Check Thursday, Nov 16, 06 @ 11:31 am

  11. Sad thing is, Henry’s right. People get paid more money to work with machines or to flip burgers than to care for a persons life. This isn’t right and it’s not just. The Gov. doesn’t care, and he never did. These people can’t do anything for him and he won’t do anything for them.

    Someone needs to stand up for the workers who do what most people don’t want to do and that’s take care of people who can’t take care of themselves. That’s what I do, and I’ve worked both for the state and the community. Both sides suck. There aren’t enough community placements for the people in state ops to go to, and not enough money to provide adequate resources in the community, but the Gov wants to close the state ops and get out of the business of taking care of these people. It’s wrong.

    Drives me nuts. Keep on talkin’, Henry. Maybe someday, someone will listen.

    Comment by Tessa Thursday, Nov 16, 06 @ 11:36 am

  12. So let’s see…
    You want everything free, paid for by government - BUT - you don’t want to pay the people who would be doing the services?

    Who do you think these people are? Saints and slaves? You do think there are thousands of Keebler Elves wiping your butts?

    Listen greedy - you can’t have it both ways. You can whine about how you want everything free, clean, neat and orderly and pay for it - or you can rot in your cave with your cash. CHOOSE ONE.

    Comment by VanillaMan Thursday, Nov 16, 06 @ 11:38 am

  13. Bill, Not sure what’s so funny about the fact that very highly respected, nationally recognized experts who had spent decades in public service have left state government.

    Comment by Just me Thursday, Nov 16, 06 @ 11:50 am

  14. Bill, AFSCME has good public policy if you bother to read it. Supply the people to to provide the services to the people that need it. Pretty darned simple. And you act like the Gov bargained the contract himself. He had a bunch of people who did it in a big room for him. He just showed up, very, very late, to sign the freaking thing, over two months after we settled the contract. Contract settled in May. Contract signed in August. I was there, watched him walk up the steps at the Hilton, and then walked into the room after he did. Quit acting like he did us a favor, when he just signed his name on a piece of paper. Nancy did the talking for his side and now she’s gone.

    Comment by Tessa Thursday, Nov 16, 06 @ 12:13 pm

  15. I have no problem with paying direct care workers
    employed by community agencies more money especially given the vulnerability of their clientele.

    But I don’t think I should have to pay higher taxes to bring this about.

    There are a multitude of ways in which the state can cut expenses. Stop the tens of millions in legislator bribes, I mean, earmarks. Reduce the corruption tax by forbidding wannabee contractors to contribute to political campaigns. They add those costs to the price of the contract. Cut the state management bureaucracy. Stop jailing first time drug offenders. Require teachers and state employees, including retirees, to pay more for their health insurance; eliminate defined benefit pensions for new employees in favor of 401k’s.
    The money is there for the really important things including, I agree, higher wages for this group. But Filan and Co have to manage it. And that’s what they are paid to do.

    Comment by Cassandra Thursday, Nov 16, 06 @ 12:39 pm

  16. Hmm, solving the structural deficit… maybe House Bill 750?

    House Bill 750 is a fantastic piece of legislation and was the cornerstone of the Whitney campaign. I really hope the state legislator stands up to Blagojevich and starts getting it passed.

    Comment by Diversity of Thought Thursday, Nov 16, 06 @ 1:03 pm

  17. AFSCME has outlived its usefulness because they refuse to police their own and are only concerned with the quantity of their members not the quality. The biggest problem with the staff reduction is that now you have an even higher proportion of non-working hanger on’s as you do the real members who have a sense of urgency to get the job done. Too many bargaining unit members feel they are entitled to a paycheck and frankly could not survive in the private sector.

    Comment by PlayK8 Thursday, Nov 16, 06 @ 2:33 pm

  18. Never was any “leadership” at AFSCME. Just a bunch of folks constantly thinking they’re getting screwed over, trying thier hand a politics, no real agenda other than “Mgmt. sucks”& then it trickles down to the rank & file. I can see NO big raises or benefits coming in the next negotiations with a current contract expiring in less than 2 years…they got ALL that this time. The lack of endorsement of Blago & Bayers “endearing” remarks isn’t the best way to ease into this new scenario. Look for some eliminated positions too . Hope they enjoyed it !?

    Comment by annon Thursday, Nov 16, 06 @ 4:12 pm

  19. Mr. Filan and GOMB have a solution: they just put out a RFP to ‘reorganize’ several state agencies - and where services are offered throughout the state.

    Comment by Cat Thursday, Nov 16, 06 @ 5:29 pm

  20. The state governement resembles a giant pyramid scheme, as they shuttle around funds from pensions to general fund, to whatever, to LOOK balanced, and give tatters of credence to Blago’s pie in the sky populist spending. Eventually, the financial chickens will come home to roost, and there isn’t a thing that Bill’s rants will change about that. Unfortunately, at this point there isn’t anything a sane citizen can do about it either, except brace for the tax and economic fallout.

    Comment by Bubs Thursday, Nov 16, 06 @ 5:35 pm

  21. PlayK8 said “Too many bargaining unit members feel they are entitled to a paycheck and frankly could not survive in the private sector.”

    Frankly, where do you get off saying that union members feel they are entitled to a check? Where do you get off by saying that we couldn’t/wouldn’t survive in the private sector?

    From what I have seen of consultants working for IDOT, I wonder HOW THEY are surviving in the private sector. In the past 7 years, I have had 1 consultant who didn’t need to have his hand held to get the project completed. I have had too many consultants make submittals that are returned covered in red pencil becuase we are doing their QC/QA. I have had too many arguments with consultants who are using the wrong policy to support their arguments.

    Don’t give me this manure about not being able to survive in the private sector. I am in the process of interviewing for a position in the private sector and the company is offering me a very good position with about a 25% raise. They are expecting me to come in and make an immediate impact for their company. I will meet their expectations and more. I get paid by IDOT to solve problems and when I leave, it will be IDOT’s loss because they couldn’t/wouldn’t make a suitable accomodation.

    Don’t shoot the messenger for speaking the truth. AFSCME is only saying out loud what everybody knows to be true but are afraid to say out loud.

    The state has structural staff shortages which if corrected soon, will lead to a systemic breakdown of state government and its ability to deliver services.

    Comment by huh? Thursday, Nov 16, 06 @ 5:47 pm

  22. So, Cassandra, if we substituted a 401K for the current SERS defined benefit program, what level would you suggest the State contribution be at, and how much money would that free up for higher wages for community workers, over, say, the next five years?

    Comment by steve schnorf Thursday, Nov 16, 06 @ 5:55 pm

  23. Didn’t the Gov swear to uphold the state Constitution? I think he went to Pepperdine Law School and they teach contractual law there, don’t they? Here a little reminder for the citizens of Illinois.
    SECTION 5. PENSION AND RETIREMENT RIGHTS
    Membership in any pension or retirement system of the State, any unit of local government or school district, or any agency or instrumentality thereof, shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired.
    Mr. Bayer isn’t the bad guy here! For all you Merit Comp employees who think they are “management” - where’s your last raise or COLA or will your pension be there when you retire. I hear furloughs are ahead. For all the State employees who have dedicated their career to helping the people who voted for the State Constitution – they are saying “too bad.” I trust AFSCME, boils and all, over a state system that doesn’t give a plug nickel for you. WAKE UP and ORGANIZE!

    Comment by It makes cents Thursday, Nov 16, 06 @ 6:21 pm

  24. With a veto proof majority and a very bright senate leader it seems to me that the governor has become rather irrelevant. The Mike and Emil show is about to begin ! And we may well be better for it.

    Comment by Citizen A Thursday, Nov 16, 06 @ 6:22 pm

  25. Henry should be worried about the OMB’s RFP on CMS’s Procurement Bulletin. Healthcare and Family Services, Human Services, Transportation and Revenue are the first departments to cut staff.

    Comment by Rex Thursday, Nov 16, 06 @ 6:31 pm

  26. Rex, I think he is very worried!

    Remember “You ain’t seen nothing yet”

    Comment by GetAGrip Thursday, Nov 16, 06 @ 6:52 pm

  27. Diverity of Thought:
    Explain to me how HB 750 is a fantastic piece of legislation. It is deceiving to call it a “tax swap.” I see a huge tax increase. Please educate me…

    Comment by Holdingontomywallet Thursday, Nov 16, 06 @ 7:18 pm

  28. Diversity of Thought:
    Explain to me how HB 750 is a “fantastic piece of legislation”. It is deceiving to call it a “tax swap.” I see a huge tax increase. Please educate me…

    Comment by Holdingontomywallet Thursday, Nov 16, 06 @ 7:19 pm

  29. I find it interesting that the Senate feels the State of Illinois has enough $$ to give the General Assembly a salary increase. They must need it since Jones wants the electronic rates to increase.

    Comment by So Blue Democrat Thursday, Nov 16, 06 @ 7:22 pm

  30. Steve Schnorf-

    It would depend on the match.

    But pensions become progressively more expensive as the employee nears retirement age. This is not true of a 401 k type match.

    Lower retirement benefit costs make the state more healthy economically.

    Comment by Cassandra Thursday, Nov 16, 06 @ 8:40 pm

  31. So Blue - Yes, a 10% raise for our legislators and other high ranking state officials. To add insult to injury, they jusify it by saying they haven’t had a raise in three years so this is only making up for the cost of living for the last three years. I assume they will give the same to merit comp employees, right? Geez,it hasn’t even been two weeks since the election was over and they already vote themselves a 10% raise - WE AIN’T SEEN NOTHING YET…..

    Comment by Holdingontomywallet Thursday, Nov 16, 06 @ 9:31 pm

  32. I wonder what the legislators will have to say if and when the press asks how come they get a 10% raise when merit comp employees of the state haven’t had one for three years also. And if MC employees got a 10% raise, you’d have to scrape them up off the sidewalk in shock.

    Comment by Really Disgusted Thursday, Nov 16, 06 @ 10:39 pm

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