11:50 AM Monday, August 3, 2009
Gov. Ted Strickland keeps saying that he thinks there will be a second federal stimulus.
His hope for another bailout comes up a lot because Ohio would be insolvent California today if it weren’t for the $5 billion-plus that Washington has sent to the state. This one-time money creates the illusion that Ohio’s budget is balanced.
Without another injection of federal aid, Ohio could be $8 billion short in two years. The coming shortfall will exist in spite of multibillions being cut from the current budget. Put another way: If you’re unhappy now about cuts to libraries or programs that keep seniors in their homes, just wait.
Moreover, that’s the best-case scenario. The belief is widespread that more slashing will be required to get through the next two years and that it will begin again soon.
Ohio — from state government to school districts and townships — can’t pin its hope on a federal government that is awash in red ink. Moreover, there’s no way that, as the state keeps cutting, local taxpayers will fill in the losses that roll down hill by approving more and more levies and tax increases.
The stimulus gives Ohio — and counties, cities and schools — a window. They can use it well or squander it. But there isn’t a local government or school district in the region that can keep doing what it’s always done the way it’s always done things.
And because so much of any government’s costs are tied to personnel, there’s no way to reduce costs without cutting spending on employees.
This is not a call to war with public employees or their unions. That said, the hard fact is that if government is going to reduce its expenses, buying fewer paper clips will not do it.
Voters should not let their elected officials off the hook by passively accepting that laying off people is the only answer. Communities should not be held hostage to the argument that mass layoffs — and punishing service cuts — are the only option.
In fact, there are myriad changes in contracts, practices, work rules and state law that can reduce government spending without destroying the fabric of public services.
For instance:
• The “step system,” wherein public employees and teachers for many years and in quick succession get two raises annually — one for time on the job, one as a cost-of-living adjustment — is horrendously expensive and masks the increases employees really are receiving. (Moreover, in hard times, when salary freezes are imposed, the freezes don’t always apply to the step raises.)
• Public employee pensions are phenomenally generous, and they reward people with cushy deals at ages that are unheard of in the private sector. In addition, the pensions discourage natural turnover once a person has any significant time on the job. Creating what amounts to “golden handcuffs” results in a work force that is generally older and more expensive.
• The state law that requires binding arbitration when police and fire unions can’t reach agreement forces managers to make offers they can’t really afford in order to appear reasonable. Arbitrators can’t modify either side’s last and best offer; they have to pick one’s side proposal.
• Overtime is a racket, especially in police and fire departments because of holiday pay and contracts that allow too many first-responders to be off at the same time, resulting in others being called in and paid premium wages.
• Some governments let employees cash out large amounts of unused sick leave when they quit or retire.
Public service is important, even dangerous, work. Communities need talented and exceptional people choosing it as a career. But Ohio is not the rich state it once was, and that’s true for local communities, too. Perks that were affordable once are not any more.
Some of the unavoidable changes can only come from the state — pension and collective bargaining reforms, for example.
But other savings will require local elected officials and administrators to speak truth to workers and to their communities about what each can expect in a new day.
Bailouts are not forever. Some problems we created ourselves and have to fix on our own.
Cox News Service