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Tuesday, November 8, 2011

Voting for Issue 2 is the better option for union members

  As the polls open this morning, repeal of SB 5 looks imminent.
  Over $30 million that we know of has been poured into this state in video, radio and paper adverts for the past 4 months. The opponents of SB5 certainly have been out front of the argument because, indeed, this is survival for the unions. If union members did not have to pay union dues, the unions and their much-fatter-than-workers' salaries and all their perks will go down the rabbit hole.
  The Republican Party has not supported Issue 2. In fact, unions have pumped money into this particular state from all around the country, particularly DC. Union members have all been involuntarily assessed as much as $54 per member to support the repeal of 5.
  The few million that have been spent on clarifying what is at stake has been raised by the "little people," like Tea Partiers. That is, those who have no heavy handed union fist to beat cash out of people.
  So let's assume the polls are right. SB5 is repealed. 
  Yay!
  Everything's back to the way it was!
  Yay!
  We don't have to pay a required amount of health insurance or pension. Yay! The taxpayers have to pay it for us! Yay! We don't have to have evaluations for work performance! Yay!
  And the inner city school children will continue to suffer.
  Unions will continue to bully employers with threats of strikes to get more and more and more money, even though those employees already make 43% more than the average worker.
  They'll do anything they can to fill the coffers because that's what dishonest, greedy people do.
  Take, for example, Fannie and Freddie. They are preparing $12 million in bonuses for officials who have performed nominally but, to get these raises, in addition to all the other  deficits Fannie and Freddie are running, they have to petition for an additional $6 billion.
  So SB 5 is repealed. What's next is detailed pretty clearly over at Cleveland.com:
Advice to union bosses: Don't get too caught up in celebration, because any victory will be short-lived. And not because Republicans in the General Assembly will get right to work on passing laws that codify the many things in Senate Bill 5 that are widely considered sensible. Whatever the legislature does now is actually the least of unions' worries. 
Advice to low-on-the-totem-pole union members: Don't bother celebrating. Do get your resumes in order.
  Does anyone really think school levies will be passed in this state for years to come?
  We've covered this before.
  One look at the balance sheet of school treasurers reveals that the vast majority of school districts will be completely out of money and in the red in the next few years, if things continue the way they are.
  In Perrysburg, the school district will be $20 million in the red by 2015. Even with a 10% across the board cut, Perrysburg will be $10 million in the red.  
  From Buckeye Institute:
STRS admits two points that Buckeye has been making for years. First, STRS retirees are living longer than expected and are collecting benefits for a longer period of time. With increases in life expectancy, it is entirely possible for STRS members to spend more years drawing retirement benefits than actually teaching in the classroom. For instance, a teacher who begins teaching at age 23 would be eligible to retire at 53 with full pension benefits that will increase three percent annually until death. With many individuals living well into their 80s and 90s, these long-living retirees would draw pension benefits for 30 years plus, with total benefits well exceeding $1 million. 
The second problem STRS admits is the growth in teacher retirements. As retirees enter the retirement rolls at an increasing rate, the total pool of pensioners grows and greater payouts must be made to cover the larger number of beneficiaries. The money is pouring out faster than it can be put back in. 
What’s left is exactly what we have now. A failing pension system, buried beneath nearly $40 billion of its own liabilities, admitting that without significant changes, it will eventually be unable to pay benefits. 
  This PDF reveals the extent of the debt racked up by local school districts. In Wood County alone, these are the DEFICITS that will occur by 2015 by the districts' own figures and without passing levies.
  •   BG Schools -$20 million  DEFICIT
  •   Eastwood-$761,000  DEFICIT
  •   Elmwood-$1.4 million  DEFICIT
  •   Lake-$13.2 million  DEFICIT
  •   North Baltimore-$7.3 million  DEFICIT
  •   Northwood-$1.9 million  DEFICIT
  •   Otsego-$2.7 million  DEFICIT
  •   Perrysburg-$20.9 million  DEFICIT
  •   Rossford-$10.3 million  DEFICIT
  So go ahead and vote down Issue 2.
  But you recent hires need to get your resumes and checkbooks out because it's gonna cost ya more, in the long run.
  Bankruptcy isn't an option, for states or for school districts.

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