Showing posts with label bankrupt cities. Show all posts
Showing posts with label bankrupt cities. Show all posts

Monday, September 17, 2012

Chicago Mayor calls teacher strike one of choice-When is it time for parents and children to get a choice?




 The Chicago Teachers Union decided to flex their muscle and close down public schools  for the past 6 school days, with no end in sight.  This ground to a halt one of the nation’s  largest school systems, leaving almost 400,000 children to fend for themselves.

Working parents are frantic trying to make arrangements for their children’s safety and welfare during the day. Many parents are suffering financially by having to pay for expensive child care services, instead of having them in school attempting to get an education.

Of course, the children’s welfare and the parents who must pay for Chicago’s public education system are not even an incidental concern in this tug of war for money and power.  The city of Chicago has almost a billion dollar deficit and does not have the financial ability to pay more for anything.

But that does not seem to faze the union, who is demanding even higher wages and benefits, on top of the highest in the nation salaries they now receive.  Additionally, a great sticking point in the union’s demands is the ability to judge teacher’s performance by standardized evaluation testing. The union rejects this type of accountability.  They are also demanding job security at a time in the nations history where few have job security and bankrupt cities are buckling under public employee union contracts.

Perhaps if the school system was turning out scholars in high proportion and had nation leading scores in math and reading skills there could be a justification for more money for the union members, But a large proportion of Chicago’s school children are under performing and if they do  graduate, large segments of them show they are inadequately prepared to enter higher education or the workforce.  

To underscore where children are on the totem pole of importance to the National Education Association, their General Counsel Bob Chanin , pretty much summed it up: “Union Dues, Not Education, Are Our Top Priority.” See the Heritage excellent story on this.

This might be the “bridge too far” by the unions, or maybe they have finally pushed fed up parents and taxpayers around the country, who are demanding a better education for our children. 

The Friedman Foundation has been spearheading school choice around the country.  Study after study has proven when parents and children are given a choice with a voucher as to what school they can attend, they end up doing far better and their chances of going on to a 4 year college improve. 

On the whole, voucher systems save taxpayers millions of dollar where they are in effect. They also have the added benefit of getting children out of failing public schools into well run private schools.  Minority children have seen the greatest growth in their educations when school choice is offered.

Education choice for parents and children, the time has come.

The most unique gifts: Time capsules in American and world history: lifemagforsale.com

For other points of view visit Carroll Standard: carrollstandard.com

For a refreshing change visit Tea Party Cheer







Tuesday, July 31, 2012

As California's cities go bankrupt, will they emerge safe?


The world is paying attention to California's cities as they start to topple like dominoes into bankruptcy.  Many of them are reeling from a deflation in real estate values which saw their sources of revenue shrink.  But due to long term deals they made while they were flush, they have not been able to reel back on spending outlays in order to adjust to the new economic realities.

Sports stadiums, boat harbors, new municipal buildings, fleets of brand new vehicles and  generous labor contracts with their unionized municipal employees have brought them to their knees economically. Many others are on one knee, begging the state or the federal government to step in and help.  But of course this is akin to asking the economically blind to lead the economically blind.  The cities are a microcosm of spending by the state and federal government.  But they can't, like the federal government, print more money, or in the case of the state, issue as many debt obligation bonds or push off debt into the future.

Stockton, San Bernadino, Mammoth Lakes and Compton California, all have recently filed for bankruptcy protection, or are on the verge.  But experts believe they are just the tip of the iceberg as the recession still has a grip on the golden state. In the meantime, other cities have been proactive in dealing with their fiscal problems as their citizens vote to rein in municipal workers union power.

What will these cities look like after they emerge from bankruptcy? The City of Vallejo was one of the 1st major California cities to file bankruptcy in 2008 and just recently emerged.

I talked to the director of finance for the City of Vallejo, Deborah Lauchner and she was able to illuminate post bankrupt Vallejo for me.

According to her, when the city first started to hit the financial skids in 2008, they tried to pare back on expenses and asked their employees for concessions.  They had 11 mediated sessions in trying to work something out but none of the 4 unions representing city employees would budge and Vallejo was forced to file bankruptcy.

Before filing bankruptcy, employee compensation cost 75% of the general fund budget.  After emerging from bankruptcy employee compensation cost the city 82% of its general fund budget.

The 1st union to come to the bargaining table was the police union.  According to Lauchner, since the police union was first, they actually got a great deal and ended up with raises.  Each successive union that came to the table after that got a little less. The fire dept came to the bargaining table last and actually took a small hit.

Average police officers salaries and benefits are 234,000, with current staff of 97.  Average fire fighters wages and benefits are 216,000, with a current staff of 80. 

Current staffing levels for public safety are 43% of what they were prior to bankruptcy. Many in the safety services chose retirement and the city has not replaced the losses.

 Lauchner said: "We had a sales tax increase with an approved budget for FY 12/13 that uses almost $5 million in reserves to cover the shortfall in revenues.  Our expenditures are not quite where we want them to be at this point.  That is directly related to an oversight by the City related to negotiations that have pushed off resolution for at least one more year."  The City of  116,000 is currently paying for $165 million in unfunded liabilities associated with past employees and retiree benefits.

I said "that's a huge burden to put on the shoulders of the citizens of Vallejo.   I know you've streamlined the city and are cutting expenses wherever you can...Have you considered privatizing any services?"  She said: "We are always looking for opportunities.  We are hampered by some of the language in the labor agreements, but we are continuing to look for more flexibility as we re-negotiate these agreements."

I asked Lauchner how she thought the city of Stockton California would do in their negotiations with public employee unions in order to get out of the terrible financial situation they are in.  She said we had a difficult time dealing with 4 separate unions, Stockton has to deal with 12 separate unions, so it will be much more complicated.

If Vallejo is the road map for what other cities will have to follow in order to emerge from bankruptcy, it looks as though citizens are going to be burdened with more long term debt, higher taxes and less protection from unionized safety services. As a result, instead of  having a fully staffed pre bankrupt police and fire forces, they have less, but more expensive personnel providing protection for the citizens. 

Time will tell if Vallejo's pared down safety services will provide it's citizens the protection necessary to have a safe community.  Perhaps, like other communities, police will just not be responding to certain types of crimes, because they are spread too thin. But perhaps this new reality will lead to more personal responsibility of citizens to be proactive in the policing of their communities. Could there be more neighborhood watches on the horizon? Will more Californians take advantage of their 2nd Amendment rights?


The most unique gifts: Time capsules in American and world history: lifemagforsale.com

For other points of view visit Carroll Standard: carrollstandard.com