How public-sector union greed, arrogance, and influence peddling broke California

Steven Malanga, at the City Journal has a must read article on How public-sector union greed, arrogance, and influence peddling broke California.

Please consider The Beholden State

The camera focuses on an official of the Service Employees International Union (SEIU), California’s largest public-employee union, sitting in a legislative chamber and speaking into a microphone. “We helped to get you into office, and we got a good memory,” she says matter-of-factly to the elected officials outside the shot. “Come November, if you don’t back our program, we’ll get you out of office.’



The video has become a sensation among California taxpayer groups for its vivid depiction of the audacious power that public-sector unions wield in their state. The unions’ political triumphs have molded a California in which government workers thrive at the expense of a struggling private sector. The state’s public school teachers are the highest-paid in the nation. Its prison guards can easily earn six-figure salaries. State workers routinely retire at 55 with pensions higher than their base pay for most of their working life. ....

The CTA entered the big time in 1988, when it almost single-handedly led a statewide push to pass Proposition 98, an initiative—opposed by taxpayer groups and Governor George Deukmejian—that required 40 percent of the state’s budget to fund local education. To drum up sympathy, the CTA ran controversial ads featuring students; in one, a first-grader stares somberly into the camera and says, “Pay attention—today’s lesson is about the school funding initiative.” Victory brought local schools some $450 million a year in new funding, much of it discretionary. Unsurprisingly, the union-backed school boards often used the extra cash to fatten teachers’ salaries—one reason that California’s teachers are the country’s highest-paid, even though the state’s total spending per student is only slightly higher than the national average. “The problem is that there is no organized constituency for parents and students in California,” says Lanny Ebenstein, a former member of the Santa Barbara Board of Education and an economics professor at the University of California at Santa Barbara. “No one says to a board of education, ‘We want more of that money to go for classrooms, for equipment.’ ” ....

Public-safety workers—from cops and sheriffs to prison guards and highway-patrol officers—are the second part of the public-union triumvirate ruling California. In a state that has embraced some of the toughest criminal laws in the country, police and prison guards’ unions own a precious currency: their political endorsements, which are highly sought after by candidates wanting to look tough on crime. But the qualification that the unions usually seek in candidates isn’t, in fact, toughness on crime; it’s willingness to back better pay and benefits for public-safety workers. ....

The state’s prison guards’ union has exploited a similar message. Back in 1980, when the California Correctional Peace Officers Association (CCPOA) won the right to represent prison guards in contract negotiations, it was a small fraternal organization of about 1,600 members. But as California’s inmate population surged and the state went on a prison-building spree—constructing 22 new institutions over 25 years—union membership expanded to 17,000 in 1988, 25,000 by 1997, and 31,000 today. Union resources rose correspondingly, with a budget soaring to $25 million or so, supporting a staff 70 deep, including 20 lawyers.

Deploying those resources, the union started to go after politicians who didn’t support higher salaries and benefits for its members and an ever-expanding prison system. In 2004, for example, the CCPOA spent $200,000—a whopping amount for a state assembly race—to unseat Republican Phil Wyman of Tehachapi. His sin: advocating the privatization of some state prisons in order to save money. “The amount of money that unions are pouring into local races is staggering,” says Joe Armendariz, executive director of the Santa Barbara County Taxpayers Association. A recent mayoral and city council election in Santa Barbara, with a population of just 90,000, cost more than $1 million, he observes. ...

California’s third big public-union player is the state wing of the SEIU, the nation’s fastest-growing union, whose chief, Andy Stern, earned notoriety by visiting the White House 22 times during the first six months of the Obama administration. Founded in 1921 as a janitors’ union, the SEIU slowly transformed itself into a labor group representing government and health-care workers—especially health-care workers paid by government medical programs like Medicaid. In 1984, the California State Employees Association, which represented many state workers, decided to affiliate with the SEIU. Today, the SEIU represents 700,000 California workers—more than a third of its nationwide membership. Of those, 350,000 are government employees: noninstructional workers in schools across the state; all non-public-safety workers in California’s burgeoning prisons; 2,000 doctors, mostly residents and interns, at state-run hospitals; and many others at the local, county, and state levels.

The SEIU’s rise in California illustrates again how modern labor’s biggest victories take place in back rooms, not on picket lines. In the late 1980s, the SEIU began eyeing a big jackpot: tens of thousands of home health-care workers being paid by California’s county-run Medicaid programs. The SEIU initiated a long legal effort to have those workers, who were independent contractors, declared government employees. ...

Municipalities around the state are also buckling under massive labor costs. One city, Vallejo, has already filed for bankruptcy to get out from under onerous employee salaries and pension obligations. (To stop other cities from going this route, unions are promoting a new law to make it harder for municipalities to declare bankruptcy.) Other local California governments, big and small, are nearing disaster. The city of Orange, with a budget of just $88 million in 2009, spent $13 million of it on pensions and expects that figure to rise to $23 million in just three years. Contra Costa’s pension costs rose from $70 million in 2000 to $200 million by the end of the decade, producing a budget crisis. Los Angeles, where payroll constitutes nearly half the city’s $7 billion budget, faces budget shortfalls of hundreds of millions of dollars next year, projected to grow to $1 billion annually in several years. In October 2007, even as it was clear that the area’s housing economy was crashing, city officials had handed out 23 percent raises over a five-year period to workers. ...

It will take an enormous effort to roll back decades of political and economic gains by government unions. But the status quo is unsustainable. And at long last, Californians are beginning to understand the connection between that status quo and the corruption at the heart of their politics.

Steven Malanga is the senior editor of City Journal and a senior fellow at the Manhattan Institute. He is the author of The New New Left. Research for his article was supported by the Arthur N. Rupe Foundation.

There is much more to see in Steven Malanga' excellent article. Please click on the link and read it all.

Public unions and their untenable pension plans are the biggest problem that cities and states face. Please check out this Interactive Map of Public Pension Plans to see how badly underfunded your state is.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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