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Networks Stand with Wisconsin Unions, Ignore $1-3 Trillion Pension Deficit for Five Days

By Julia A. Seymour | February 23, 2011 | 11:18

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For roughly a week, a battle has been raging in Madison, Wis. Evening news programs on the three broadcast networks framed these as "citizen uprisings" over pay cuts and "eliminating unions' collective bargaining powers to negotiate wages and benefits."

Reporters also portrayed this as a national union issue, but mostly failed to point out the national problem of pension underfunding.

Actually, the battle is the result of Republican Gov. Scott Walker's attempts to balance the state budget by asking roughly 300,000 state employees to contribute more to their pension funds and health insurance and give up the ability to negotiate more than their wages. According to CNNMoney, the state faces a $3.6 billion budget deficit.

Only 1 out of 24 network evening stories about the Wisconsin "feud" since Feb. 16, reported a critical number relating to union pensions: $1 trillion. That's the huge deficit facing public workers' pensions in America and the reason Walker and other state governors are facing tough choices including demanding public workers contribute more.

ABC's Barbara Pinto reported on the "looming crisis" on "World News" Feb. 21, the sixth night of coverage. Pinto said: "[P]ension plans for America's public workers that are underfunded by at least a trillion dollars. Finance professor Joshua Rauh thinks the debt could be at least three times as much."

She then quoted Rauh who said, "The only people who can pay for this are current taxpayers, future taxpayers, public employees, if their benefits are cut."

In fact, according to Americans for Tax Reform that figure is three times higher. ATR said in August 2010, that state and local government pensions are underfunded by $3.04 trillion. Public school teachers' pensions make up nearly $1 trillion of that figure ($933 billion). In Wisconsin, their pensions could be "$10.9 billion shy of full funding" according to the Manhattan Institute.

Networks Portray Budget Battle as 'National Assault on Unions'

So why did it take the networks so long to point out how big the pension problem really is? Perhaps, they were too busy sympathizing with the thousands of union protesters including many teachers who staged a massive multiple-day "sick-out" shutting down schools across Wisconsin.

Networks reporters framed many of their reports in the language of the unions claiming the bill would "strip state workers of collective bargaining rights" or that Walker's legislation was "targeting public workers and their unions." CBS's Cynthia Bowers even said that the battle "is now being billed as a national assault on unions." Well, according to both the unions and the networks that was the case.

Some of the network reports even drew comparisons between the Egypt and other Middle East unrest and the Madison, Wis., protests.

Gov. Walker has not backed down. He told The Heritage Foundation, "I've said all along the protesters have every right to be there, but I'm not going to let tens of thousands overload or overshadow the millions of people in Wisconsin, the taxpayers of the state, who want us to do the right thing and balance the budget."

Unionization of public workers carries high costs, but many students still can't read

Bloated public-sector union benefits come at a huge cost to taxpayers and according to a recent analysis from MacIver Institute the Wisconsin protests alone could cost taxpayers in that state $9 million.

Commentary Magazine noted online Feb. 22, that MacIver Institute had come up with a cost estimate for paying all the teachers in Milwaukee and Madison for the days they had walked out to protest Walker's bill.

If they are all paid for the days missed, MacIver News Service said "protest related salaries for just the state's two largest districts would exceed $6.6 million dollars." Add in the cost of the smaller school districts that have shut down and the total rises to about $9 million. As Commentary's Alana Goodman noted, each "phony sick note" costs Wisconsin taxpayers $513.

And what do Wisconsin teachers' unions have to show for all the taxpayer money they cost the state? On top of their pay and benefits, Wisconsin spends the most per public school pupil on its students than any other Midwest state: $10,791 per student in 2008.

Despite that, CNSNews.com reported on Feb. 22 that two-thirds of Wisconsin's eight graders (in public schools) cannot read proficiently. Only 32 percent of those eight graders earned a "proficient" grade on the National Assessment of Educational Progress tests. Forty-four percent earned a "basic" rating, while 22 percent received a "below basic" rating.

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No private company could ever compete like that and survive.

Submitted by NeoKong on Wed, 02/23/2011 - 11:54am.

What if they ran Burger King they same way they run public education....?  All the cashiers and burger flippers would be making $60,000 a year and get a pension and they would be closed for the summer. A burger would cost $10.00  You may or may not actually get your burger and if you did get it it would probably be cold.   If you tried to complain they would respond that no one elses has complained so your complaint is worthless and besides...they are understaffed and underpaid.     So now you get fed  up and decide to go to McDonalds.   That's fine. They can't stop you  however they still expect you to fork over the money that you would have spent at Burger King as well.   If you decided to make your own burger at home they would send the department of health after you and if they saw something they didn't approve of like a bible they would take your kids and put them in foster care.

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Diversion and Obfuscation.

Submitted by Ashrak on Wed, 02/23/2011 - 11:59am.

Sitting Democrats in two states have went so far as to run away out of state in order to make sure that this story is about ANYTHING but the substance of the numbers.  Let's take ONE class of 20 students. That is over 200 hundred grand for 181 days of teaching.

I know this much, give me 200 grand and I will have twenty kids proficient in just about anything that could be demanded on the curriculum front. I am betting the farm that about 250 million Americans would say the same exact thing.

Teachers had better THINK very hard about where their priorities rest today. Very hard indeed.

That an individual right exists requires that some policy positions be removed from the table of debate.
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You all at NB are much too

Submitted by jdhawk on Wed, 02/23/2011 - 12:07pm.

You all at NB are much too polite.  The "networks" didn't ignore the 3 trillion dollar deficit in pension funding.  They purposely spiked any stories having to do with the crisis in pensions that exist across our country.  They know exactly what they are doing.  They are most likely members of unions themselves.  They are not dispassionate on this subject by any means.  They each have a personal stack in the outcome. 

Here is what the Governor of Wisconsin wants:

The governor is looking for the following:

> State employees to be responsible for making a 5.8% contribution to their pension plans (same as private sector workers).
> State employees to pay 12% of their healthcare benefits, which lifts monthly payments to $200.00 from $79 (private sector on average pays $330).
> Collective bargaining only on pay.
> HSA-like health plans.
> 401K-like retirement plans.
> Pay increases pegged to CPI changes unless approved by public referendum.
> Union members to hold yearly votes.
> State stops collecting union dues.

 Now, go through the list and match up what you and your employer contribute to your benefits. 

In regards to pensions, my employer is one of the largest banks in the country.  Long ago, they did away with pensions and moved to a 401k system in which they pay a paltry sum, in comparison, of 100% of the first 6% of my contributions to my 401k account.  That works out to about a 1/3 of what they were contributing to my pension fund some years ago. 

I pay over $600 dollars a month for my health care through my company

I don't have any means to "bargain" for higher pay

I don't get CPI pay raises just because the CPI went up that year

In other words, if I in the private sector get the above, what is so special about public sector employees that they get so much more?

Ask yourself, if the quality of your work meant that only 1/3 of the time you were successful, how long would you have a job like Wisconsin school teachers?  In Wisconsin, it means full time employement  then sucking on the public teat until you die. 

Public workers that are striking in Wisconsin, get back to work and be lucky you have a job.  If I were the governor, I would fire all of you and hire new employees.  Heck, as far a school teachers go, I couldn't do worse then what I got nor would the kids you "teach" 

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To jdhawk You're absolutely

Submitted by ROSIE RIGHT on Wed, 02/23/2011 - 2:24pm.

To jdhawk

You're absolutely right and they're teaching our kids that "this is GOOD" to do this...they foster discontent in our future workers, teachers, public officials, etc.  These are the Leftist Democrats in action....ME ME ME!!!!!!



   

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When they fail...

Submitted by octavioj on Wed, 02/23/2011 - 12:19pm.

Miss Seymour is correct. If governor Walker fails then the school districts will have little choice. People are saying that the governor's assertion that pink slips will come out next week if the budget is not approved they only have to look at Providence:

http://www.projo.com/news/content/providence_teacher_layoffs_02-23-11_MCML6R3_v17.1a1cc6d.html

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The Nazi propoganda is flying

Submitted by ROSIE RIGHT on Wed, 02/23/2011 - 2:16pm.

The Nazi propoganda is flying and naturally, the idiotic left has the Nazi swastika on the wrong party's official instead of where it really should be!  Incredible.....

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Face it, If the libtards are for it

Submitted by Boudin on Wed, 02/23/2011 - 9:28pm.

It's usually pretty damd pathetic!!
 

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