Democrats on Capitol Hill are literally taking food out of
the mouths of the most needy to pay back their political cronies.
Today, the House will vote on the infamous Bill with No
Name, H.R.
1586 (originally the FAA Air
Transportation Modernization and Safety Improvement Act),
which contains a $26.1 billion bailout for financially strapped
state governments. Much of the money will go to public employee
unions, in the form of a $10 billion “Education Jobs Fund” to
supplement state education costs. This comes on top of a $53.5
billion bailout of unionized teachers in the State Fiscal
Stabilization Fund — some of which is still unspent. Worse, the
new legislation would impose $9.7 billion in permanent tax
increases.
The failing economy is not the only reason school districts
are seeing shortfalls. The
Wall Street Journal reports that
school district spending has been out of control for at least a
decade and is far out of sync with enrollment growth. As the
Journal notes, “total education spending grew by 32%
percent between 1999 and 2009, while K-12 enrollment has grown by
less that 1% each year over the same time period.”
In some cases, unions have prevented state and local
governments from making needed cuts in their budgets. For
example, earlier this year the
Milwaukee School Board announced that it
was laying off 428 teachers due to budget shortfalls. The average
Milwaukee teacher receives only $56,000 per year in salary, but
also gets a generous $40,000 in benefits, including a health care
plan that costs $26,000 per family, compared to $14,500 for
private employees. The school board sought to cut costs and to
keep the teachers by implementing cuts in benefits. A proposed
health care plan would have instituted co-pays expected to yield
$47.2 million in savings, more than enough to save every
teacher’s job. The union refused to bargain, instead opting for
layoffs.
Milwaukee school system superintendent
William Andrekopoulos said he was “surprised” at the union’s
reluctance to negotiate to prevent the layoffs, but H.R. 1586
provides a possible explanation for the union’s behavior. The
Milwaukee Teachers Education Association (MTEA) may have been
gambling on the prospect that congressional Democrats would bail
them out. The union’s executive director, Pat Omar,
said, “The
problem must be addressed with a national solution, a federal
stimulus package that will restore educator
positions.”
And what kind of benefits is the union seeking to
protect?
Coverage for Viagra, for
starters. The MTEA has asked a judge to order the
school board to reinstate erectile dysfunction drug, which was
removed in 2005 to save money in its health insurance plan.
Adding the drug would cost taxpayers an additional $786,000 per
year, or the cost of 12 first year teachers.
“You’ve got to be kidding me,” said State Rep. Jason
Fields, a Milwaukee Democrat. “The fact that is the point of
contention is kind of frightening. What are our priorities? I’m
all for love and peace. But almost 1 million dollars? And you go
to court over this issue?”
For public employee unions, this is payback for their
extensive support of Democratic politicians. The Center for
Responsive Politics lists the
American Federation of State, County & Municipal
Employees as second on its
Top
All-Time Donors list. The
National Education Association (NEA) is
eighth and the
American Federation of Teachers (AFT)
comes in at 13th.
Combined the NEA and AFT have spent over $58 million
on politics since 1989, with over 90 percent of that money going
to Democrats. No wonder an August 6
Washington Post editorial
stated flatly, “The crusade for an education jobs bill, led by
the Obama administration and Democratic leaders in Congress, has
always struck us as more of an election-year favor for teachers
unions than an optimal use of public resources.”
Worse, the Bill is more than just blatant payback; it is
also punishment. Every state will be eligible for a bailout
except one, Texas, the only state deemed ineligible to receive
funds under H.R. 1586’s population-based formula.
The carve-out, which could cost Texas $800 million, is part
of a spending tug of war between Washington and Austin. Texas can
still receive funds but must capitulate to higher education
spending levels though 2013 — which Governor Rick Perry opposes
as unconstitutional.
Texas used
$3.2 billion of last year’s federal
stimulus to shore up the state’s rainy day fund, angering many
who wanted to increase state spending. The push by congressional
Democrats — including some from Texas — can be seen as a larger
effort by the federal government to mandate and increase state
spending.
If the Bill with No Name teaches us anything, it’s that in
today’s political climate being fiscally responsible will only
bring punishment. So, if states want Washington to play nice with
them, they need to follow its example and spend, spend,
spend!
