Was the recent Wisconsin Senate action really Illegal?
Yesterday the Wisconsin state senate made an outrageous procedural move, eliminating collective bargaining rights for state workers, in a vote that really had no advanced notice. You pretty much have to see the event with your own eyes to truly appreciate how inappropriate this was from a procedural standpoint. Thank goodness modern media makes that possible:
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The move was stunning and controversial, but was it illegal?
A claim that government has acted illegally is a strong one, so just to be sure for myself, I personally wanted to double-check it before referring others to such a claim. I’m not a lawyer, a judge, nor a Constitutional scholar. I’m just a concerned citizen with a search engine at his fingertips. But here’s what I found.
The state of Wisconsin has a 2007 compliance guide for interpreting their Open Meetings Law. According to a statement at the head of the document personally attributed to J.B. Van Hollen, the Republican Attorney General credited as the document’s author, “Effective citizen oversight of the workings of government is essential to our democracy and promotes confidence in it.”
Section I of the document goes on to say “The open meetings law explicitly provides that all of its provisions must be liberally construed to achieve its purposes. ... This rule of liberal construction applies in all situations, except enforcement actions in which forfeitures are sought.” (Bold added by me for emphasis.)
And so it seems to me that, most certainly, the forfeiture of collective bargaining rights is by a state legislature is not something for which anything other than a strict reading of the law is appropriate.
The compliance guide includes the text of the law itself, which says (bold added for emphasis):
19.84 Public Notice
...
(3) Public notice of every meeting of a governmental body shall be given at least 24 hours prior to the commencement of such meeting unless for good cause such notice is impossible or impractical, in which case shorter notice may be given, but in no case may the notice be provided less than 2 hours in advance of the meeting.
I don’t personally see any way to strictly construe “in no case” as having a lot of wiggle room. Two hours notice was not given.
The argument was made that the items subject to review had already been introduced and that only things had been removed. I don’t agree that this is adequate. A statement with words removed is not the same as the statement. The sentence "This is true." is the same as the statement "This is not true." but with one word removed—and yet it changes the meaning. But even if you remove whole words, the meaning and purpose can be changed. We may make an agreement like “I agree to give you a car. You agree to give me $5000.” It does not follow that if one sentence is removed from this agreement, we have either “already reviewed” nor agreed to and debated the subset document. “I agree to give you a car.” is not something we’ve talked about. We’ve talked about the combination of giving the car and getting money, which is quite different.
So my personal assessment is the allegation that this act was illegal is quite solid.
Thankfully, these documents are publicly accessible so you can look them up yourself and don’t have to rely on my word for this. And the Wisconsin Open Meeting law also assures the right to record, film, or photograph any open session meeting, which is why a record of these events is available for inspection as well.
If you got value from this post, please "rate" it.
This is the first of two parts. The next part is here:
Beware Too-Efficient Government
Update
Con Chapman and RJBEsquire noted that §19.87(2) of the Open Meetings Law states that “No provision of this subchapter which conflicts with a rule of the senate or assembly or joint rule of the legislature shall apply to a meeting conducted in compliance with such rule.” RJBEsquire says further that Senate Rule 93 states, “no advance notice is required other than posting on the legislative bulletin board.” Alas, that may well be the case. If so, it still strikes me as bad law, in that it completely defeats the intent for which the Open Meetings Law was so obviously written. See my companion article Beware Too-Efficient Government for more on why I think the law should not have had such exceptions as exist in §19.87(2).


Salon.com
Comments
It's always THEIR way or the highway.
Rated with hugs
Since these rules apply to public meetings of the legislature the reference to forfeitures actually refers to cases in which the legislature attempts to seize private property by eminent domain since that is the only case in which the legislature may seize property.
You've also reversed the sense of the statement since the section you quoted specifically exempts forfeiture actions from the general rule.
The minimum two hour rule was met on the basis of the prima facie evidence that the senators attended the meeting. If notice were not given, they would not have been there.
The rules you have cited are so vague as to be meaningless and will be thrown out by a court of superior jurisdiction when the case gets there....but the real issue here is that we have forgotten that government is a process.
The senators who voted for this measure should be turned out of office via recall proceedings for malfeasance in office.. Failing that, the public workers affected by this heinous action should do what unions have always done to obtain redress of grievances.
Strike. God damn it. Stop whining and strike. Shut down the state government.
Strikes are the last hope we have short of armed insurrection.
Zachery, indeed, that's the heart of it. It is really anti-democratic.
Linda, is a brina some term for a cleaning device that I don't know about, or is it just a scrambling of “brain.” Were I to make an ad hominem, I might say something about the possibility of a few scrambled brains being in there already... But I don't like to take that particular conversational approach, so I won't say that.
Oh, like sagemerlin, I also think that the forfeiture bit is a red herring; the law you've linked to does list a bunch of reasons for exemptions, but I don't think that this act falls under any of those cases (and of course IANAL either).
Stellaa, thanks for the support. I agree, and my reply to Rob pretty much explains why.
Overall, the Wisconsin anti-union action is yet another example of "conservative" deceit -- as Walker "wisely" didn't run on trashing the middle class. Destructive ideological movements have always used deception, as dishonesty isn't considered a bad thing to those who are convinced the ends justify any means.
Any law suit will ultimately be decided by repiglicorporately owned judges against we, the REAL Americans.
I live in the state in which too damn many did not get off of their lazy asses to vote to prevent the puppet from invading the governor's orifice to sit there and have his strings pulled by his owners.
I have voted in EVERY election since JFK so, I am very pissed at the lazy bastards who could have prevented this.
Yeah, that was long winded butt, this is a never ending war against these fucking weasels and, I AM PISSED ABOUT IT.
But, that said, I also am not sure it will get to them. This seems to my lay understanding of law like an entirely internal matter to Wisconsin, so presumably (ignoring the historical precedent for overreaches like Bush v. Gore) there is no reason for the US Supreme Court to get involved.
In my view that is a separate issue. The vote could be crammed through again regardless of the move to recall the slippery Senators. The reason the union-busting bit was broken off of the budget was because that vote didn't require a quorum.
That's how I see it, although without examination of procedural rules. If there were a way to use procedure to delay the vote, wouldn't that mean a Dem or two would have to show up to do that, and if they did, there would be a quorum, and the budget gets passed as well?
That isn't a rhetorical Q, as I don't know the answer.
The concept of inconsequence comes into play here. Would the result have been any different if more advance notice have been given? Of course not. It's silly to make an issue of it.
Actually, I wish that more notice had been given. It might have induced the cowards who fled to the home of political corruption to return to their duties, in which case the WHOLE law could have been passed.
Let's face it. The unionists have been outsmarted and outmaneuvered. And they are now experiencing the unlubricated experience of having legislation, much less drastic than universal health care, shoved down their favorite aperature.
I agree there may have been a law broken, and the ones in power are using the economy's current problems to justify a deeper and more well thought out agenda. I am worried for the folks of Wisconsin, and even more worried for labor in general around the whole country.
Thankfully, due to the genius of the American political system, those salad days are over, along with the power of Nancy Pelosi and Harry Reid, who should pursue a career as a cowboy poet in northern Nevada.
You bet your sweet bippy it would. Broken clock; right twice daily.
@Gordon, you call the Democrats who stayed home as cowards. I think they were heroes! They had the nerve, to try and tell the rethugs that they would not be part of the carnage that was to take place.
I only wish the rest of the Democrats in Congress had that much nerve!
rated
And thanks for joining the other OS faux intellectuals who believe that my residence has something to do with my arguments.
@ Gordon - You just come off as soooo reasonable and intelligent when you use the phrase "union savages". Nice to see how a "real intellectual" discourses. Thanks for schooling us "savages".
I'd be happy to put my 'broken clock" up against your Broken Record any day of the week.
At this point the people of Wisconsin are so enraged by the heavy-handed actions taken by Walker and the Republicans that they will dump a large number of them in the 2012 election. A huge turn-out by Democrats is guaranteed. Walker himself is up for a recall when eligible in 10 months. People from Wisconsin are open-minded and flexible, but they will not tolerate a government that rams through legislation, forces their will on people without the proper political give and take, and seems to be more interested in pushing their party's political agenda than doing what is best for the state.
It's ironic that the Republican party, once fierce opponents of communism, have now adopted the communist attitude toward unions and unionized workers, or "union savages" as Gordon Osmond calls them.
Even people who have sense and are pragmatic are scared to death to say "Raise enough taxes to pay the budget".
The answer is in the statute. When the Wisconsin Open Meeting law conflicts with a rule of the legislature or either house, the legislative rule takes precedence, Wis. Stat. 19.87(2). So either house can create a rule to shorten the notice or change how it is given and thereby avoid the statute--doesn't even require an emergency.
A cynic would say this is just another example of how legislatures exempt themselves from the laws they pass for others to live by (e.g., Congress always exempts itself from federal employment discrimination laws), but it may have had a practical basis when passed (and I don't know whether the legislature was Dem or Repub when the law passed). You can understand how a legislature's style would be cramped if it was up against a budget deadline and had to give two days' notice before authorizing the refinancing of a bond issue that would mature in one day.
I'm pro-open meeting law, having recently resigned from a municipal board whose members continued to send group emails and "reply all" responses after I'd pointed out to them that our state A.G. takes the view that group emails are "meetings," but I think in this case it is unlikely that a court would find the legislature's action to be unlawful.
Governments at the local, state, and federal levels have to shrink or arguments over whose pay/benefits will be cut and whose won't will be a moot point...there'll be no country left to fight over.
Taxpayers are tapped out...you cannot expect to continually give raises in pay and benefits to union workers in the public sector...the math doesn't add up.
So what are you "fighting"? Are you saying the country isn't broke? Do you want public sector employees to be able to continually receive raises when the government's already close to default?
Forget emotions, and stick with reason.
I can only conclude that Governor Walker is insane, as he is trying to turn a good government state into something resembling Northern Ireland.
At this rate, the most corrupt satrapy of Mexico is looking like Scandanavia in comparison to the legislative halls of Madison.
I do have my doubts as to the perception of what happened being illegal. When people have something happen they 'perceive' as illegal things usually change. I think the way this is perceived will affect what happens later. Not good for either side. This fight will continue for a long time. Me thinks
I wondered the very same thing when I heard the charges of illegality. I think the question that I don’t see being addressed is this: Does it matter whether it is legal?
The Federal Government has engaged in illegal acts with impunity over recent years and those broke those laws are walking around making money selling books, making speeches, teaching at universities. Does it matter whether what they did/do is legal?
If this goes to court, it will ultimately come down to whether the court making the final decision leans Left or Right, I think.
I suspect that your analysis is incorrect. However, I won't debate this point directly with you.
I will point out that the Wisconsin Senate Democrats have had ample, and many, opportunities to return to the venue at which they are paid to do their jobs.
That's what I think is so cool too. They could have caved, like so many disappointing Democrats these days, instead they stayed strong. It is a thing of beauty to watch the Republicans choking on their own bile.
This whole issue about what’s going in Wisconsin is extremely troubling. Since a collective agreement is officially a contract (between employees via a union and an employer), one party cannot modify or annul the agreement that both parties have signed. You would never see something like this up north, where the government would out-of-the-blue, especially for political gain, cancel or recant a collective agreement. After all the Wars against Drugs, … against Terror, …against Women, etc., the GOP is now at War against State Employees! Lovely. That should encourage Americans to work in the public sector (sic).
As I said before, our good old Californian resident Gordon O. should stick to correcting grammar. However, since he had trouble spelling “aperture,” he may not be up to the task.
I too view the Democratic senators as heroes. They did their jobs, trying to represent their constituents. And I'm betting that, were the opposite to occur, and Republican senators left the state, Gordon and all the foolish others would be saying that they were the heroes. It can be hard to look objectively at a situation and see the other side.
But the governor and his fellow corporate slavewits are not considering their constituents, which I find repugnant. Are they not public servants themselves, with their salaries paid by taxpayers? Why, yes, they are.
This is an unbridled move to a sort of corporate dictatorship. I've tried to see the other side myself, but I don't understand how anyone, in either party, could stomach the destruction of the republic democracy, but well, clearly, those who agree with this business want that. Otherwise, why would they support this? They don't seem to see how dangerous all this is to freedom in this country. I mean, it's not like it's a subtle kind of problem! It's pretty obvious.
As I wrote somewhere else, perhaps they envision putting on their jack boots and jackets and killing anyone who disagrees ... or putting them in a camp somewhere. I just don't know. All of it defies clear, critical thinking. To win their arguments, they falsely inflate the salaries of teachers and ignore the pleas that these things will affect children adversely. The average teacher in Wisconsin makes $52, 000 a year, depending on type of job. Some make less at $24, 000. They have their own money funding their retirement and healthcare. They pay taxes like everyone else. But, somehow, they are evil and must be crushed, and inflated, crazy ass salaries in six figures are discussed as if they are real, when they are so patently not. As a friend of mine in Wisconsin who is a teacher said, "Who the hell are those teachers making that? Because neither I nor the National Association has heard of them."
Meanwhile, bankers and Wall Street get bailouts and bonuses, and Fox News defends that voraciously. And those people really screwed up. But somehow they are great and must be supported. It really is like that joke about the rich corporation taking the 11 cookies and saying to the poor or middle class Republican "Look out! That union guy wants some of your cookie!" I mean, it's so clear, but none of them see it.
Honestly, I have to conclude that they are stupid. I just don't know what else to think. Is it so important that the President be a white male that they are willing to crush our entire republic to get that back? It's just whacko.
So, between crazy or stupid, I select stupid. Apparently, it starts with not being able to count.
One hope: This situation was a serious over-reach on their part. It's too clear that they want to make the rest of us servants and slaves to the corporation at this point. They always claim the liberals want us all at the lowest common denominator, but it is their policies that will accomplish that. Amazing how they can't see that.
I hope it means these public "servants" are recalled and/or not elected to another term.
(1) because now that the Wisc 14 are back in town, the bill can be passed in keeping with Wisc law
(2) because whether the question comes to Wisc courts or not, Repugnants have already lost in the court of public opinion
(3) because judging by present polling, several Republican legislators are likely to be recalled
It they are, that will necessitate subsequent elections to fill those seats. All this is likely to leave the Wisconsin legislature crippled until the 2012 elections, putting a serious crimp in Walker's plans. And if there is any justice in this world, Repugnants will be the ones getting shellacked in the 2012 elections.
First, the issues seem to focus on procedural issues of Administrative Law and issues regarding Constitutional Law.
Second, these are areas of the law that are highly complex therefore this will take a very long time to sort out. I mean a number of years.
If I had experience in Wisconsin I may be able to tell you more.
http://www.youtube.com/watch?v=a5sx-4i5y0E
http://www.youtube.com/watch?v=GG7V2XkIAE4
And, this:
http://www.thewheelerreport.com/releases/March11/0310/0310madisonmayorcieslewicz.pdf
Hope this helps, Kent.
The following was posted in wislawjournal.com: "Defenders of the meeting’s legality cite a Senate rule (Senate Rule 93) that states “no advance notice is required other than posting on the legislative bulletin board,” according to the release from Marchant. Notification of the meeting, according to the release, was e-mailed to all legislative offices as a courtesy, but the notice appears to have satisfied any legal requirements."
Source: "Open meetings challenge faces long odds", Thursday, March 10th, 2011 at 9:30 am, BY: Jack Zemlicka, http://wislawjournal.com/blog/2011/03/10/democrats-assert-law-violation-in-senate-action/
And again, they don't think it will affect them, not understanding how, even without a union themselves, the union deliberations ended up keeping everyone's wage higher and kept everyone's benefits stronger. Also, notice the complete ignorance in the way that they believe raising taxes for wealthier Americans would be bad for the middle and lower middle class. How could that possibly be?!? Well, you know, it couldn't.
It is just sheer, unadulterated stupidity. It's stunning, really.
Can it be a deliberate stupidity? Or, honestly, is it real, honest-to-god dumbness, lower IQ, etc.? Because I can't tell anymore.
bobbot, I hope the people won't allow it to stand. Time for the pendulum to swing back the other way.
Steve, later comments seem to suggest that there are loopholes in the Open Meetings Law I didn't notice, but that render that law almost toothless. My comments in the second part explain why this is an issue for me even if it's not a violation of law.
Paul, I agree there are ways this could be (and seems to have been) rammed through. I think there is a quorum requirement only for votes on fiscal matters, by the way, but I'm not 100% sure on that. I think that's the reason the budgetary items had to be removed from the bill before they thought they could vote on it. I believe there was at least one Democratic member still attending, though, who could have done the procedural parts.
Gordon, your remark about “bigger and better brains” is uselessly provocative and if I had more energy, I'd move your remark to the Cornfield, too. Calling them cowards is likewise provocative. Were the Republicans who used the filibuster on everything in the last few years likewise cowards, by the way?
Stellaa, excellent summary.
FLW, thanks. Yeah, perhaps. Although the faster thing would be just to re-vote it voluntarily, I'd think. They may be confident enough of their actions to let them stand, though.
Joisey, I would. Lawful certainly in a free country. Ethical? Well, they were elected and so a majority of their constituents presumably supports their cause. Procedurally correct? Well, a parliamentarian didn't rule their actions out of order.
Kenny, yes, I agree this stuff the Republican senators did was at least immoral.
Bobbot, let's not be pointing fingers at conversational participants. It may feel satisfying, but it will feel better to just confront him on the topic at hand.
I'm not aware of any state legislature, or indeed, any body whatsoever, who have imposed an open meeting law on themselves without effectively exempting themselves from it.
To be fair, I don't think a state legislature could actually function if they did. While I applaud the goal of openness, I don't think the typical open meeting law scales to a body of that size.
I think we might have to take more drastic measures to get openness -- for example, limit legislative business to 8 am to 12 midnight, and require a full audio/visual record of each member's day as a public record, in real time -- so the public can get as much notice as the members.
We see a foreshadowing of that in this case, although I don't think we'll go that far -- but I think we'd have better government if we did.
I offer the following links, with commentary.
Freedom of Information Center's letter to Senator Harry Reid, 2006
Comment: Let anyone accuse me, or anyone interested in open government, as being a left-wing liberal...I concur with this letter completely, and it's interesting to wonder how things might have been different 4 years later, had the Democrats taken it to heart.
Open Meeting Guide
Comment: Openness in government accomplishes nothing if the citizenry are not active. Know your state's open meeting and open records laws.
Here in California, we've had an open meeting law, the Ralph M. Brown act, on the books for over 57 years. I shudder to think what would happen without it.
But open meeting laws don't solve all problems.
By the way -- I don't have a lot of sympathy for unions, especially public unions. I've been a union member -- Teamsters -- and my wife is a member of the Animation Guild. I'm not anti-union, but I think they've created a lot of animosity and distrust and resentment while at the same time often failing their own members. The details vary by union, but I'm speaking here of the aggregate effect of various unions being shortsighted or union bosses being self-aggrandizing.
Public employees often get pensions that private workers have not gotten in decades -- and a degree of job security unrivaled anywhere. The share of our economy which is "the government", in one way or another, is huge (though on a per-capita basis, the government payroll is down from its highest levels). And unlike in the private sector -- public officials are beholden to public unions for their financial and political support.
But regardless of what should happen, or what I think should happen, with the public unions (I don't really have an answer I'm satisfied with anyway), it needs to happen openly, with each legislator -- and the governor -- being entirely accountable for their actions.
By comparison, I used Google, and found this January 25, 2009 New York Times article.
Since it's hard to see the totals, I've taken that data and captured it as a spreadsheet with totals.
Note that welfare recipients in the US in 2008 numbered about 4.25 million -- a far cry from 35%. If you add in food stamps, you get quite a few more -- 34.6 million in 2008. Still a far cry from 35% -- and you said welfare checks -- food stamp recipients do not get checks.
Now, I don't know how the Times defined 'welfare'. I don't know, for example, if they include Bear Stearns, a corporate person who was bailed out in 2008. More seriously, I don't know if you are considering Social Security or Unemployment Compensation to be welfare payments. I would argue vigorously that you should not -- you and your employers have paid for those. Although in the case of unemployment, I grant that during times of recession those state insurance funds are extended with federal dollars.
Maybe we should include farm subsidies -- sure, I'll consider that welfare. Although it doesn't quite fit -- all those lazy farmers sitting around collecting checks to do nothing. Yeah, those are the farmers I grew up with. Right.
Maybe you're including government paychecks?
Still, I'm finding very difficult to get your 35% number past my plausibility filter no matter how I stretch it. It really sounds like some number made up by the Fox News organization.
(And don't get on my case about the liberal media -- I just blasted the NYT on their journalistic standards).
Anyway, I highly recommend that you CYA by fact checking your postings, especially if they include numbers, and citing sources.
Otherwise, someone is likely to come along and fact-check your ass (FCYA).
Yours for a Reality Based Discussion,
Bob Kerns
2. The meeting creating all the stir was a "joint committee of conference." Therefore, the Joint Rules apply.
2. Joint Rule 27 states: "Unless otherwise provided by law, every committee hearing, executive session, or other meeting shall be open to the public. If time permits, advance notice of every regularly scheduled committee hearing, executive session, or other meeting shall be published as provided in joint rule 75."
a. Rule 75 only goes to methods; it has no time limits for advance notice.
b. Also, the " Unless otherwise provided by law" wording of Joint Rule 27 only goes to the matter of being open to the public; not advance notice.
3. Joint Rule 27 sets no minimum advance notice for this "joint committee of conference" meeting the action in question. Hence, advance notice of only 5 minutes is permitted under Joint Rule 27 which Rule would actually permit no advance notice, if time did not permit. Hence the minimum 2 hour advance notice required by the Open Meetings Law conflicts with Joint Rule 27 which requires an advance notice but sets no minimum advance.
4. Given the fact that that the meeting was a "joint committee of conference" and was not a Senate or an Assembly meeting, Senate Rule 93(2) notice rules and similar Assembly notice rules, although also requiring no minimum advance notice, as well as Senate Rule 25 (1) (b) notice rules, are not applicable.
5. It is true that Joint Rule 3 (1) requires that "At least one member from each house shall be a member of the minority party", but nothing in that Rule requires the minority party member to be present.
6. The Wisconsin Legislative Reference Bureau (LRB), reports that on March 9, the Senate requested a Committee of Conference and the Senate appointed Senators Fitzgerald, Ellis, and Miller as conferees. The Assembly agreed to the Committee of Conference and appointed Representatives Fitzgerald, Suder, and Barca as conferees. http://legis.wisconsin.gov/spotlight/index.htm
7. So you see, Senator Miller (D) was a member of the Committee of Conference and therefore, membership of Committee of Conference did in fact have a minority party member from each house. Again there was no requirement under Rule 3(1) for Committee member Senator Miller to be present. He was AWOL.
The laws were available to use the first day there was not a quorum...
That's approximately what unemployment, disability, and social security retirement are -- insurance.
Unless you want to consider all insurance to be "welfare" once you receive it, it hardly seems right to pick these and call them welfare.
Let's not confuse welfare and insurance fraud.
By your standards, it would seem we should also consider paid vacations and sick pay to be welfare, too.
I wonder if that 35% number might be the number of people who receive welfare (under some definition) at some point during their lives? That might be believable. There are a lot of people who end up on welfare for a short period -- often divorced women whose husbands stop or delay child support payments. We could save a lot of $$ by going after that particular problem.
Then later, a lot of elderly end up impoverished, as do people with critical illnesses who cannot get health insurance.
So maybe 35% of people end up on welfare during some period of their life, while paying taxes which go in part (maybe 5% or so depending on what you count) to support others on welfare.
That's a lot closer to the world I live in.
I still don't agree with your characterization of unemployment as "unearned income". It's earned income -- just like the "employer-contribution" share of your Social Security tax is earned income. It has the effect of reducing your salary, but since your employer mustn't tell you it's part of your salary in the first place, it's a hidden tax (involuntary insurance payment).
I would guess that characterization wouldn't change your opinion of it! It doesn't seem the "unearned" part is important to your point.
I quite agree that 35% of the population relying on the government for payments is, well, I'd call it a vulnerability, both to the economy and individually.
Once you're on Social Security, say, you're dependent on whatever the political winds may do to that program (or may have already done, whose affect we have not yet seen).
It even applies to government salaries. I'm not sure if they were in the 35% -- but I'm sure state workers in Wisconsin are feeling a bit vulnerable these days!
Here in California, Governor Brown is pushing for something I've long advocated -- returning of money and control to local governments. There are problems and downsides, of course, but a lot of the problems we have now are from over-centralization. Something the folks in Wisconsin will learn about in the future, if their governor has his way!
Local school boards are held hostage to state policies. Every time the state legislature can't balance a budget, local school districts have to scramble to come up with funds, including raising taxes in special elections.
It becomes a way for the legislature to escape the consequences of their own actions. It also hurts the local districts that are the poorest the most -- they likely cannot raise the taxes so easily. Perhaps they could if local people saw better where their money was going and that the local school district were well run, fiscally -- but even if true, that's a hard message to convey when the news is full of the legislature's financial meltdowns -- year after year, budget after budget.
I hope the connection here to your 35% number and point is clear. Sending money to Washington, or Sacramento, or Madison, and asking for it back in benefits or school aid, is a form of dependency.
There may be times and places where it is needed. I'm happy my tax dollars to helped rebuild and operate schools after Katrina, and hope our own schools don't end up in the same situation after the Rogers Creek fault on one side or the San Andreas fault on the other let go.
In the case of education, we should make no mistake -- this dependency is explicitly about control. Federal education dollars are tied to Federal education agendas. State tax dollars are tied to State education agendas. That's not entirely bad -- it helps to prevent bad education from going uncorrected. But it's also not entirely good.
So I wonder what terms and conditions are imposed as part of that 35%? I know in the case of unemployment, the terms are "you must not be working, but you must be looking for work". For Social Security, "you must not earn more than $X". For education benefits -- "you must be a full-time student".
But I don't agree with your comment about Healthcare through the government. People already rely on it. The costs are already buried completely. Our current system, of having it essentially only reliably available through employers, forces people to work for larger companies. Small companies, startups, self-employment are thus severely, extremely severely penalized, as they cannot offer people health insurance.
Unfortunately, neither blinking side in Washington seemed much interested in fixing that. And we don't have government-run Healthcare, either -- what we have is an expansion of Healthcare run by bureaucracies which might as well be governments, because they are completely firewalled against any sort of economic feedback.
Corporate welfare, really.
So often, the political parties depart from reality in the opposite direction, proceed around the circle, and meet in battle on the other side -- while all sanity and economic reality are left 180 degrees on the other side. I think we have that situation with Healthcare.
But do you wonder what would happen, if every conversation with every Healthcare lobbyist, and every strategy meeting of each party on the topic, were suddenly to be posted to YouTube?
Contrast that with how Healthcare policy is currently made -- behind closed doors of huge insurance companies, with no accountability at all? (But make no mistake -- it is government policies which insulate them from any economic accounting.)
This is a bit disjointed, I apologize. But I hope you can see where I'm going with this. The key thread in all of this is "feedback loops". When you insulate governance from the corrective influences of feedback, by blocking information flows, or aggregating and centralizing, you get problems. And when you have government applying economic pressures through centralized payments, you invite a whole other class of problems.
These two threads intertwine. This whole "liberal" vs "conservative" thing distracts us from how tangled we have become in this web.
I think the points you make are good and there were so many I will try to address a few. The unemployment insurance in Wisconsin is a insurance plan with the employer not the employee. No place in my check do they take out for unemployment unless you count state and federal taxes. The employer is forced by the state to pay a percentage to the state to cover unemployment. If you have people collecting they will raise your rate to cover those increases. When someone is hired their unemployment is really not considered as wage because you plan on keeping that employee. It is only when that employee is not needed any more that this kicks in. So even though you might not need the services of the employee any more, you are forced to continue paying this employee. I understand the social aspects of it, but to not call it welfare I don't understand that. At least in social security and medicare you pay into those programs, so I wouldn't consider them welfare but unemployment I think would. In our business, we hire mostly seasonal employees. Wisconsin doesn't consider any employee seasonal. So even though these people know going into the job that they will only be working 8 month, when they get laid off they collect on us. It is a huge drain on business. As far as looking for work we have called the state and they say they have no way to enforce this measure so their is no requirement. I believe maybe 4-8 weeks of unemployment is sufficient for someone to locate other employment, but after that it becomes to comfortable for some people. There are many jobs out their paying more than unemployment, but most people do not want to do them. We also have people with kids that only want to work 20 hours so they can still collect all their government goodies. We have work for them but they choose not to work. People know the system and once you know it, you can play the game. Trust me, this in not everyone, but we are seeing it more and more as the government programs become more lucrative. Healthcare being provided by the government would only be an issue if they gave it to people and then had to take it away. This will happen because the government will never take in enough money to pay for everyone to go to the doctor. Looking at all the people who are paying for medicare and not receiving benefits and the program is still failing is showing you what is to come. The costs of healthcare do not start at the insurance company, but at the doctors offices. The insurance companies do make a profit but getting the doctors to charge less is a problem. They are already declining medicare patients on the premis that they are not getting paid enough. So this is the hurdle not the insurance companies I think. Well that's enough for now. Good Conversation.
False. . . .
See http://www.ssa.gov/history/nestor.html
I will say that what bugs me is not the cost of things but whether others can do things I can't. A big company can offer medical care because the incremental per-person cost of having an administrator is not bad. But a little company really can't do that, and so it's a pain to offer decent stuff. I'd rather have the government offload such matters as health care and retirement because in my experience those are hugely expensive and very distracting to administer. I'd rather pay the government a tax and know it was properly tended to. You might say (and you wouldn't be alone) that I should pay a private company, but then I have to compete with what another company does. Not in the market of products (although it falls to that as well as it affects the prices I can charge) but in the market of hiring, which is a separate parallel marketplace. Big companies would be able to afford better service companies (health care, retirement, etc.), and so they'd have their pick of who to hire. The best employees want the best health care. But why on earth should my ability to afford health care determine whether a guy who was good at programming or making widgets should work for me. I'd want to hire that person because he was good at what he did and he liked the business I was in, not the incidentals I could offer. And not just incidentals, but incidentals that are not even work-related. It seems to me that little companies may tend to get second-string people who the big companies don't want. It shouldn't be that way.
Little companies should be able to get people if they have interesting projects to do—the question of what health care someone gets should not be involved in the decision to be hired by me. That's just so artificial and it skews the market. And if there's volatility and I might have to lay someone off, I want them taken care of, so I don't mind paying tax when I'm making money as long as I don't have to feel guilty when I'm not. You seem to model unemployment as someone getting something free, but in my experience it's about the fact that the business owner gets to gamble on making money, which maybe he wants to do, but he is forced also to gamble with people's lives, too. It's OK if I start a business and it folds, but if I employ someone it's not OK for me to take them with me. I see unemployment insurance as more than just a free lunch—it's a way of insulating day-to-day workers from the gambling casino aspect of businesses that hire and fire all the time. It's not the regular worker's fault that the businesses these days aren't stable.
They may have to retrain, they may have to move to a new location, they have a lot of problems. It's oversimplifying to say that all people who are unemployed are just home being so comfortable they won't go back to work. Unemployment pay is just not that cushy. There may be the occasional person who finds it enough, but I bet that is very rare. I bet it's used as an example because it serves somone's political agenda. I bet there aren't nearly as many cases of that as certain people are happy having you believe. I also bet the overall cost of it is not the major cost in the system.
Think of it as a penalty for victimizing your employees, whom you have induced to depend on you, by mismanaging your business.
Yes, that's over-dramatizing it -- but so is your characterization, and in the same way.
But the point is, when a company's unemployment insurance goes up -- it is because they have a history of making people unemployed. That part of it is not under the control of the employee. It is the employer's action that leads to the situation, and this is insurance against your actions.
I do understand your point about flexibility -- up to a point. Many industries are inherently variable. But you -- and your employees -- must both consider that as part of doing business in that sector. Think of it as sharing the risk between you and your employees. (That's what insurance is, after all -- risk sharing).
Unemployment pay is a fraction of regular pay. And it maxes out -- $425/week in California. Unemployment is at best a stop-gap, and for most people, if you stay on unemployment too long, you'll exhaust your savings.
BTW, I have been a small business owner -- though never successful enough to hire a full-time employee. I would make a serious stab at doing so again -- except for the little matter of health insurance, which forces me into the hands of larger corporations.
I have also read all of the precedent decisions for the CA Unemployment and Disability Insurance Appeals Board. It's actually a quite fascinating glimpse into the history of labor and business.
It's also quite fascinating the ways that people try to cheat. And make no mistake -- businesses try to cheat; it's not just individuals. Often, this takes the form of labeling a departure as "voluntary" and contesting the benefits, when the departure is the result of abusive employment practices.
(Here's one type of employer unemployment fraud.)
But it also gives you a good historical perspective on why we have unemployment insurance -- why it was created, and why it continues.
I have also won a case before the appeals board -- and on a second appeal on another matter, they folded before it went to the appeals board. Neither one opposed by my former employer, but against the EDD itself. (Matters that related to due process, efficient government, etc., as well as basic facts and whether they're allowed to make them up -- I started to write a comment to Kent's post on efficient government describing that experience.)
That was my one time getting unemployment in a long career. It was my second time filing -- the first time, I ended up falling into a Catch-22, not eligible for unemployment because I ended up in the hospital 2 days after being laid off, and ruled not eligible for disability because of having received severance pay, and not able to appeal, because, well, I was hospitalized -- and then employed.
So I can tell you first-hand it's no picnic being on unemployment. It's not a lot of money even at the max -- and that's only if you've paid in at over 46K/year. How would you fare, if your income were suddenly cut to 20% of its former value, but your costs remained the same?
(And in my case, it was over 6 months of unemployment before I saw a the first penny. Definitely not an easy time of things. I won't go into the details why it took me a another six months to find another job -- but I'll point out that where I ended up finding work I first applied to within days of being laid off -- my very first resume out the door, in fact.)
So I know perhaps a bit more about Unemployment Insurance than your average commentator, and I've looked at it from a lot of different sides, having a general interest in public policy, business, and economics.
Much of the CA precedent stems around being available for and seeking work. You have to be looking for work to be eligible. If you're just sitting back, "being paid to not work", that's fraud -- not welfare.
So if you'd like to recast your concern that, as an insurance program, it's open to fraud, that's fine -- but I really feel it doesn't belong in the welfare category. (And remember, it's open to fraud on both sides! Not to mention malfeasance by the state agency!)
Potential better ideas are certain worthy of discussion.
But whether you classify it as welfare or not has little bearing on your point about the 35% and dependence on government checks -- so we don't really have to agree on the category to discuss that point.
Unsecured muni bonds in someone's retirement account -- that's a dependency on government checks, too.
I understand the point of view you are trying to establish. My point is that this viewpoint incorporates an expectation of government that can NOT be met, unless drastic changes are made to Social Security.
Frankly, Social Security is a Ponzi scheme in the sense that those first to contribute and first to benefit will reap the gold in the mine, while the rest of us will get the shaft. Some argue that the USSC's decision in 'Nestor' advertises this truth; and therefore Social Security is only a "semi" Ponzi scheme, since those who will not be fully funded have ample advance notice of this potential failure.
The current estimate of the Social Security insolvency places its initial inability to meet all of its obligations in 2037. Thus, you, and those who follow you, are truly contributing to a charity.
Moreover, as in any Ponzi scheme, no dollar collected under FICA from Mr. Pitman is held for the benefit of Mr. Pitman. In fact, the cash flow for Social Security today is such that those dollars collected from you are paid almost immediately to CURRENT beneficiaries.
Further, Social Security doesn't INVEST your contribution in any sense associated with creating wealth before you are old enough to collect its Old Age benefits, or infirm enough to collect its Disability Insurance Benefits, etc.,. Hence, it is a very poor retirement investment vehicle.
Hence, when you retire, if nothing changes, then the Social Security benefits you receive will derive from the involuntary, forced, charitable donations collected under FICA from those who remain working -- just as they are now. . . .
Chris
I would agree, however, that most people tend to make assumptions about it that, taken in place of the reality of its design, would equal a Ponzi scheme.
But it's really something much more direct.
It's a nearly-direct transfer of wealth from the young to the old. Without even the pretense of a Ponzi scheme.
The closest I can see it coming to a Ponzi scheme are that you get periodic statements suggesting what you might get when you retire. That contributes to the perception that you own something. But that perception is incorrect. You get taxed now. Later, you are on the other end of the hose, with whatever they give out then. But beyond a certain minimum point, you don't even get more benefits because you paid in more.
So it's a tax on one side, and an entitlement on the other, with no investment -- real or fake -- between.
I'm not 100% happy with Social Security's design and implementation. I will observe that, without it, you'd have people going on welfare because they had spent every penny -- either foolishly or out of desperate need.
One of the problems I have with it is that it serves as a pool of free money for Congress to borrow.
However -- the Republican idea of substituting various investment accounts is, well, bankrupt. As in, the financial meltdown would have done to Social Security (or its replacement) what has happened to all our 401(k)'s, etc. (Speaking of transfers of wealth!)
But I don't have a problem with discussing sane alternatives to the current system. Just so long as everyone is willing to acknowledge that any replacement will come with its own set of issues and drawbacks.
But I think it's not enough to fix Social Security. You also have to fix people's attitudes toward spending and savings. Especially young people. (Hey, younger me, are you listening?)
I almost agree with you about the divide. The problem is, it's an over-simplification. You have the recipients of corporate bailout money on the one side, and you have the working poor on food stamps on the other. Each resenting the other for what they get from the government.
You have farm subsidies -- almost a billion dollars for tobacco subsidies alone during the last decade.
We could go on and on with stuff like that. We have a money problem in Washington, and it's worse than a budget problem. Politicians spend our money to buy votes, wherever they can find them for sale.
And corporations and other groups spend money to buy politicians votes to send more money their way.
I think that's the real cause of the divide you perceive. But so many who resent their tax dollars being handed out so freely, are reluctant to look at the tax dollars that are directed their own way.
I don't know the solution -- but regarding corporations as persons with a free-speech right to spend gigabucks on politics isn't the right direction.
The rest of what you had to say about business, I agree with. I think that companies that lay off workers too freely are making a serious mistake, because they're undervaluing those workers, and the investment they have made in training, team building, morale, etc.
Unemployment insurance is an attempt to strike a balance, between the flexibility a business needs to stay in business (and thus not throwing even more people out of work), and the commitment that workers make in working for a company, and the risks they take on in choosing to work for you, rather than someone else.
Perhaps you would feel better about it if the numbers were organized such that it was the worker who paid the insurance premiums. Let's assume (for the sake of a more direct comparison) that it was likewise mandatory, but it came out of the worker's check.
In this scenario, if you lay off workers -- now your remaining workers would see their paychecks reduced. They'd start demanding a pay raise, or start rethinking their continued employment with you, even more than they otherwise would after a layoff.
This would tend to insulate you from the direct consequences of your layoffs -- higher unemployment insurance pricing due to your actions -- but would make workers much more aware of the risks in choosing to work for you.
I tend to not favor insulating people from the consequences of their actions, but this seems to add insulation on one side, and remove it from the other. Maybe half-way would be ideal.
There are some interesting congruences here with health insurance. Why the BEEP is health insurance tied to employment? That one messes up employers and employees alike. And now it's mandatory. Insane.
To my mind, the Republicans really blew that one. They could have stood up for principle and the small businessman, and brought the Democrats to a more sane solution; instead they protected the insurance companies, and rewarded them with millions of new customers. ($ = Votes). As did many Democrats. That, and the chance to use it as a wedge issue.
(Lest you think I'm being partisan here -- I have a similar rant about how the Democrats blew it on the issue of the deficit, and handed the Tea Party a bunch of seats on a platter when they could have owned the issue. I am not a Democrat.)
It's probably hard to believe but I agree with you on alot of what you said. I think corporate welfare is wrong. To invest in a community to help business locate their is one but paybacks to big corporations is wrong. Farm subsidize make no sense other that to control markets and that never works. I have a great idea on social security. Why don't we use the money coming in to buy our own treasury bonds so this way the american people would own the debt not foreign governments. Solve 2 problems in one. The 30 year bond pays about 4% so it would be a decent return. I would agree it is not a ponzi scheme if the government actually had the money set aside in an account to pay out benefits. Since in order to pay benifits in the future they will have to tax us more to pay benefits. It is just like Madoff who need the new money coming in because he had already spent the old money. When the money didn't come in, this was the only time he had a problem. Could be our government soon. I also kinda like your unemployement plan but for different reasons. I think if the employee did pay it on their paycheck it would be part of their negotiated salary. The longer they work at a place the more funds they accumulate incase they got laid off. This would also work like an extra retirement plan that if you stay at a business till retirement you would recieve the unused money in your account. This would solve both problems. The employee/employer would be responsible for the unemployment, it would get negotiated in your salary so the business is part of it and the business would not be on the hook to support the employee once their services were no longer needed. I think we might have just solved it. There is one problem. Who keeps the money. If it is in a general government account bad, employee account good. This would also give workers incentive to find a job so they don't depleate their account. I like it. We pay for all sorts of insurance why not this. On another point in Washington we don't have a money problem we have a spending problem. If they can't take care of the poor, the military, and health care on a 3.5 trillion dollar budget, they wouldn't be able to do it on a 10 trillion budget. If they did things right they could afford health care and it would be an easy sell to the public. Too bad they do everything wrong and really don't care. This is why the people are so mad. They see an innoficient bloated mess that nobody wants to fix.
I'm not sure of the exact number, but the trust funds (retirement and disability) hold about $2.5 trillion of the US debt. That is, of the $14+ trillion that our children will have to repay, they owe about $2.5 trillion to us when we retire. It is debt held by us, not other countries.
That's where the long-standing surplus from the social security taxes has gone -- helping to finance our ongoing budget deficits. The trust fund isn't broke, though it has just recently started running a deficit, so that $2.5 trillion number will slowly start coming down.
One consequence is, social security taxes are no longer feeding our borrowing. In a sense, they've been holding down the price on our borrowing, but that's tapped out.
That $2.5 trillion is pocket change compared to the total implied obligation to all of us who have not yet retired and died, but have paid into the system. If payments stopped coming in, it would run dry very quickly -- I don't know how quickly, but it's not worth considering, as whatever we do, it won't be that.
But Social Security itself, as well as the bonds in the trust fund, and the federal debt, all represent a transfer of wealth from our children (and our future selves so long as we remain taxpayers) to us, now. That doesn't make it inherently wrong, but it does mean we need to think carefully about it, in an context where it will paid by a smaller future generation. And fairness requires they get a like benefit from the system... I think we're way past the point where the burden on the next generation exceeds the benefit.
But Social Security isn't on the verge of collapse. That's a political scare tactic. When the trust fund is depleted, then one (or more) of four things will happen: We'll reduce benefits, increase SS taxes, borrow the money to pay the benefits, or pay the benefits anyway with newly-printed (in a virtual sense) dollars, thus diluting all dollar holdings (including the debt).
We call that last effect, "inflation", and there is much precedent to erasing debt, both public and private, through inflationary policies. I fully expect a good share of our national debt (and private) to be paid in inflated dollars some time down the road. Indeed, if we continue on our present road, it's hard to see how it could be otherwise -- except to default.
Now, if you are a net debtor, that's kind of good news. On the other hand, if you have investments valued in dollars -- bonds, say, public or private, or mortgage-backed securities, money market funds, etc. -- then you're who the wealth is being siphoned from to pay off those debts.
Politically, the discussion won't be in these terms, of course. But for as long as we've had central banking, debtors and debt holders have been in conflict. Now we're all debtors, to the tune of over $177,000 per citizen.
So a little inflation, viewed simplistically, would be good for us. (But then it gets factored into interest rates, making the next round of debt much more expensive, etc. etc. Not so nice in reality).
1. First of all, the Senate Rule 93 as quoted here is wrong - it doesn't say "No notice" it says "A notice":
(2) A notice of a committee meeting is not required other than posting on the legislative bulletin board, and a bulletin of committee hearings may not be published.
from: http://nxt.legis.wisconsin.gov/nxt/gateway.dll?f=templates&fn=default.htm&d=rules&jd=top
2. What this rule is thus stating is the TYPE of notice being utilized. It is not a rule declaring whether or not a notice should be given. Indeed, it states that a notice IS required. THUS, this does not represent a conflict between Senate rules and the Open Meeting Law.
3. Therefore, the Open Meeting Law is still applicable to this meeting and even its shorter requirement of two hours has not been met, as indicated by counsel representing the Bros. Fitzgerald.
"So how many Tea Partiers are happy now that it turns out Scott Walker's law meant he could hire unqualified political cronies
State Rep. Brett Hulsey noted that the recently approved law that made collective bargaining changes converts 37 top agency attorneys, communications officials and legislative liaisons from civil service positions to jobs appointed by the governor.
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Walker appoined the son of one of his top donors, Jerry Deschane to an $81,500 per year job overseeing environmental and regulatory matters and dozens of employees at the Department of Commerce. Brian Deschane is in his mid-twenties, has no college degree, very little management experience and two drunken-driving convictions, yet in two months he earned a promotion and a 26% pay raise. Jerry Deschane is executive vice president and longtime lobbyist for the Wisconsin Builders Association, which donated $121,652 to Walker over the past two years.
Scott Walker: Change You Don't Want to Believe Is True (rofl)"