A number of questions have been raised regarding the changes included in the budget repair legislation. Here are some answers to frequently asked questions on the changes included in the budget repair legislation.

Q: What will be the required pension contribution for government employees?

A: State, school district, and municipal employees that are members of the Wisconsin Retirement System (WRS) would be required to pay one-half of their pension contribution. The payment amount for employees in WRS is estimated to be 5.8% of salary.

Q: What will be the required health insurance contribution for government employees?

A: State employees would be required to pay 12.6 percent of the average cost of health insurance premiums. Local government employees covered by the state insurance plan would be required to pay at least 12% of the lowest cost plan. Local government employees who are covered by other health insurance plans or self-insured plans would have their contribution rate set by employers (school board, county board, municipal board, etc.).

Q: Will legislators and the Governor be required to contribute the same amount to their pensions and health insurance coverage?

A: Yes. All elected officials, including legislators and the Governor, will be required to make these same contributions to their health insurance premiums and pensions.

Q: Why was the budget repair legislation needed?

A: The Legislative Fiscal Bureau outlined in a memo several outstanding bills that the state needed to pay. Here is a list of some of the bills owed by Wisconsin:
• Deficit in Medical Assistance programs ($153.2 million)
• Deficit in Medical Assistance contracted services ($16 million)
• Deficit in Income Maintenance programs ($5 million)
• Deficit in State Public Defenders Office ($3.5 million)
• Deficit in Department of Corrections ($21.7 million)
• MN Income Tax Reciprocity Payment that was due December 2010 ($58.7 million)

The Fiscal Bureau identified a net deficit of $136.7 million for the fiscal year ending this June 30th. In addition, Wisconsin still owes $200 million to the Injured Patients and Families Compensation Fund, which was raided by the prior administration.

Q: Do changes to collective bargaining have a fiscal effect?

A: Yes. Reform of government employee collective bargaining affects the bottom lines of state and local governments. One example of the cost of collective bargaining is the estimated $68 million that school districts could save by switching from the state teachers’ union insurance company to another carrier, while maintaining the same benefits package.

Q: Will government employees still be allowed to form and join unions?

A: Yes, government employees will still be allowed to form unions. However, individuals will not be required to pay dues and the unions will collect dues – not the employer. Also, an annual vote will be required to maintain the certification of the union. In order for the union to remain certified, 51% of the members of the union must vote in favor to certify.

Q: On what issues will collective bargaining be allowed?

A: Collective bargaining will continue on the base wages for government employees represented by unions up to the rate of inflation. By comparison, most federal employees are not allowed to bargain for wages or benefits.

Q: Will this bill affect current leave benefits (vacation, legal holidays, personal holidays, sick leave)?

A: No. Accrued leave benefits will not be affected.

Q: Does the budget repair legislation include wage cuts or furlough days?

A: No. There are no wage cuts and no furlough days in the budget repair legislation or the two-year budget bill.

Q: What will be the legislation’s effect on overtime, premium pay, merit-based performance pay, pay schedules, and automatic pay progressions?

A: The use of these policies will be determined by the local employer (school board, local municipal board, county board, etc.).

Q: When will these changes to government employee pension and health insurance contributions take effect?

A: For teachers and local government employees the changes proposed in the budget repair bill will not apply until current contracts expire. For state employees and local government employees not currently under a contract, the changes will apply once the bill becomes law.

Q: How will workplace rules that are currently bargained for collectively be determined?

A: At the local level, these issues will be managed and approved by the local employer. For state employees, workplace rules would be developed by Office of State Employment Relations and approved by the legislature’s Joint Committee on Employment Relations.

Q: What protections will still be in place for government employees after enactment of the budget repair legislation?

A: There are certain protections all state employees have because they are covered by civil service rules. Many of the protections outlined in collective bargaining agreements also exist under the civil service system:
• Right to a harassment/discrimination free workplace
• Right to due process
• Grievance/appeal rights
• Ability to compete for positions
• Protection from discrimination in the hiring process

Also, the bill requires that a local government employer either adopt the state’s civil service system or establish a grievance system that covers at least all of the following: a) a grievance procedure; b) employee discipline; and c) workplace safety. If a local governmental unit creates a grievance process under the above provisions, the process must contain at least all of the following elements: a) a written document specifying the process that a grievant and an employer must follow; b) a hearing before an impartial hearing officer; and c) an appeal process in which the highest level of appeal is the governing body of the local governmental unit.

Q: Opponents argue that the legislation was pushed through the legislature with little public input. Is that true?

A: The Joint Committee on Finance held a public hearing which lasted 17 hours – longer than any public hearing in recorded history. A historic debate in the State Assembly lasted for over 60 consecutive hours.

Q: What changes to Medicaid and BadgerCare are being proposed?

A: The budget repair legislation does not make any changes to the rules governing Medicaid. It does allow the Secretary of the Department of Health Services (DHS) to study current expenditures to look for savings. This is not a new idea, as a similar provision in Governor Doyle’s last state budget required the DHS Secretary to find $600 million in savings. Due to a reduction in federal funding and an increase in caseloads, the state is facing a significant deficit in the Medical Assistance budget.

Q: Are other states facing budget shortfalls like Wisconsin?

A: Over 40 states are facing major budget shortfalls and are taking dramatic steps to bring their spending under control. California is proposing changes that could reduce take-home pay for state employees by 10 percent in addition to furloughs. That state is also preparing to cut $1.7 billion from health programs and $1.5 billion from its welfare program, while state universities are facing $1 billion in cuts. Meanwhile, New York is proposing to layoff 9,800 state workers unless they agree to $450 million of savings. School aids in New York are facing a $1.5 billion cut.

Q: What is the impact if we don’t enact the budget repair legislation?

A: The state will be forced to lay off up to 1500 workers in the current budget year and up to 6000 in the next two-year budget.

Q: I am a retired government employee. How will this legislation affect my pension?

A: There will be no impact to retirees as a result of this legislation. Pension benefits would continue to be affected by changes in the performance of the retirement fund.