• that the budget repair bill he introduced today and the budget he will introduce on Feb. 22nd will not include new furloughs for state employees and will not include layoffs.  He said the last thing we need is any more unemployed people and the alternative to the enhanced contributions by state employees would be 1,500 state employees being laid off.  
• that we can no longer afford to the kick the can to the future on making these difficult decisions.
• that the contributions that are being sought of the state employees will bring put Wisconsin at the national average for pension contribution level and 1/2 the national average for health insurance contribution level. 

Governor Walker Introduces Budget Repair   

Emergency measure is needed to balance the state budget and give government the tools to manage during economic crisis

Madison- Governor Walker today released details of his budget repair bill. 
 
"We must take immediate action to ensure fiscal stability in our state," said Governor Walker.  "This budget repair bill will meet the immediate needs of our state and give government the tools to deal with this and future budget crises."
 
The state of Wisconsin is facing an immediate deficit of $137 million for the current fiscal year which ends July 1.  In addition, bill collectors are waiting to collect over $225 million for a prior raid of the Patients' Compensation Fund.
 
The budget repair bill will balance the budget and lay the foundation for a long-term sustainable budget through several measures without raising taxes, raiding segregated funds, or using accounting gimmicks.
 
First, it will require state employees to pay about 5.8% toward their pension (about the private sector national average) and about 12% of their healthcare benefits (about half the private sector national average).  These changes will help the state save $30 million in the last three months of the current fiscal year.
 
"It's fair to ask public employees to make a pension payment of just over 5%, which is about the national average, and a premium payment of 12%, which is about half of the national average," said Governor Walker.
 
The budget repair will also restructure the state debt, lowering the state's interest rate, saving the state $165 million.
 
These changes will help the state fulfill its Medicaid spending on needy families of about $170 million; funding that the previous administration did not have in its budget.  It will also allow the state to spend an additional $21 million in the Department of Corrections.
 
Additionally, the budget repair bill gives state and local governments the tools to manage spending reductions through changing some provisions of the state's collective bargaining laws.
 
The state's civil service system, among the strongest in the country, would remain in place.  State and local employees could continue to bargain for base pay, they would not be able to bargain over other compensation measures.  Local police, fire and state patrol would be exempted from the changes.  Other reforms will include state and local governments not collecting union dues, annual certification will be required in a secret ballot, and any employee can opt out of paying union dues.   

• PENSION CONTRIBUTIONS. Require that employees of WRS employers and the City and County of Milwaukee contribute 50% of the annual pension payment. The payment amount for WRS employees is estimated to be 5.8% of salary in 2011.
• HEALTH INSURANCE CONTRIBUTIONS. Requires state employees to pay at least 12.6% of the average cost of annual premiums. Require changes to the plan design necessary to reduce current premiums by 5%. Local employers participating in the Public Employers Group Health Insurance plan would be prohibited from paying more than 88% of the lowest cost plan. The bill authorizes the DETF to use $28 million of excess balances in reserve accounts for health insurance and pharmacy benefits to reduce health insurance premium costs.
• HEALTH INSURANCE COST CONTAINMENT. Directs the DETF and Group Insurance Board to implement health risk assessments and similar programs aimed at participant wellness, collect certain data related to assessing health care provider quality and effectiveness and verify the status of dependents participating in the state health insurance program. Modifies membership of the Group Insurance Board to require the representative of the Attorney General be an attorney.
• PENSION CHANGES FOR ELECTED OFFICIALS AND APPOINTEES. Modifies the pension calculation for elected officials and appointees to be the same as general occupation employees and teachers.
• MODIFICATIONS TO WRS AND STATE HEALTH INSURANCE PLANS. Directs DOA, Office of State Employment Relations and DETF to study and report on possible changes to the WRS, including defined contribution plans and longer vesting periods.
• GENERAL FUND IMPACT. Authorize the DOA Secretary to lapse or transfer form GPR and PR appropriations, excluding PR appropriations to the UW, to the general fund estimated savings of about $30 million from implementing these provisions.

State and Local Government and School District Labor Relations

• COLLECTIVE BARGAINING. Make various changes to limit collective bargaining for most public employees to wages. Total wage increases could not exceed a cap based on the CPI unless approved by referendum. Contracts would be limited to one year and wages would be frozen until a new contract is settled. Collective bargaining units are required to take annual votes to maintain certification as a union. Employers would be prohibited from collecting union dues and members of collective bargaining units would not be required to pay dues. Changes effective upon expiration of existing contracts. Law enforcement, fire employees and state troopers and inspectors would be exempt from the changes.
• CAREER EXECUTIVE TRANSFERS. Allow state employees in the career executive positions to be reassigned between agencies upon agreement of agency heads.
• LIMITED TERM EMPLOYEES. Prohibit LTEs from being eligible for health insurance or participation in the WRS.
• STATE EMPLOYEE ABSENCES AND OTHER WORK ACTIONS. Authorizes appointing agencies to terminate any employees that are absent for three days without approval of the employer or any employees participating in
• an organized action to stop or slow work if the governor has declared a state of emergency.
• QUALITY HEALTH CARE AUTHORITY. Repeals the authority of home health care workers under the Medicaid program to collectively bargain.
• CHILD CARE LABOR RELATIONS. Repeals the authority of family child care workers to collectively bargain with the state.
• UW HOSPITALS AND CLINICS BOARD AND AUTHORITY. Repeals collective bargaining for UWHC employees. State positions currently employed by the UWHC are eliminated and incumbents are transferred to the UWHC Authority.
• UW FACULTY AND ACADEMIC STAFF. Repeals authority of UW faculty and academic staff to collectively bargain.

• ADDRESS FY11 MEDICAID DEFICIT. Increase Medicaid GPR appropriation to cover estimated $153 million deficit.
• AUTHORIZE DHS TO RESTRUCTURE PROGRAM NOTWITHSTANDING CURRENT LAW. Authorizes DHS to make program changes, nothwithstanding limits in state law, related to specific provisions.
• TECHNICAL CORRECTION. Repeals a provision in Act 28 requiring unused GPR expenditure authority in the Medicaid GPR appropriation at the end of the year to be carried over to the subsequent biennium.
• AGING AND DISABILITY RESOURCE CENTERS. Transfers an estimated $3 million in savings in the appropriation to Medicaid.

Corrections

• Provides $22 million to address shortfalls in the Dept of Corrections adult institutions appropriation.

TANF  

• Allocates $37 million of excess TANF revenues to increase TANF funding for the EITC from $6.6 million to
• $43.6 million in FY2010-11. GPR TANF funding is decreased by a similar amount.

Income Augmentation Revenues

• Allow the Dept of Children and Families and DHS to utilize $6 million of already identified income augmentation revenues to meet FY 2010-11 lapse requirements.