Wisconsin governor unveils deep spending cuts

MADISON, Wis., (Reuters) – Wisconsin Republican  Governor Scott Walker unveiled a two-year budget with deep  spending cuts yesterday and warned Democrats more reductions  could be needed if his plan to curb the power of public sector  unions remains blocked.

Walker, whose proposal to curtail collective bargaining  rights for public unions sparked huge protests and a national  debate, said his budget would slash more than 21,000 state jobs  and cut aid to schools and local governments by more than $1.25  billion.

Aiming to reduce a $3.6 billion state budget deficit over  two years, Walker said the cuts would help lower the state’s  structural budget deficit by 90 percent.

The budget address came as Walker and his fellow  Republicans tried to end a standoff over the union plan with  Democratic state senators who fled the state to block a vote.

Walker defended his push for public employee union  concessions as an essential part of his plan to rejuvenate  state finances and said it would provide crucial savings.

But he received a more polite reception from lawmakers in  the State Capitol than from protesters against his union  proposal who gathered outside. Their chants of “Hey, Hey, ho,  ho, Scott Walker has got to go” could be heard in the chamber  as Walker spoke, although they did not drown him out.

Representatives for the 14 Democratic senators who fled to  neighboring Illinois met with Senate Republican Leader Scott  Fitzgerald in Kenosha, Wisconsin, although Fitzgerald did not  say what was discussed, the website Wispolitics.com reported.

In his budget address, Walker renewed his demand that  Democrats return and vote on the union measure. He said his  budget was predicated on the savings in the union plan and  warned their home towns could face even tougher times if his  union plan is not passed.

DEMOCRATS SHOULD
COME HOME

“If the 14 Senate Democrats do not come home, their local  communities will be forced to manage these reductions in aid  without the benefit of the tools provided in the repair bill,”  Walker told a joint session of the legislature.

Walker also had warned the state would miss out on a $165  million debt restructuring and be forced to lay off workers if  the Democrats did not return for a vote on the proposal on  Tuesday.

But one of the boycotting Democrats, Senate Minority Leader  Mark Miller, blasted the governor and said the cuts would be  devastating.“The governor’s budget bill is quite simply balancing the  budget on the backs of the middle class and working families;  seniors, people with disabilities, children and small  businesses,” Miller said.

Walker’s union plan would require public sector employees  to pay more for pensions and healthcare, strip some of their  unions of bargaining rights except for wages up to the rate of  inflation, and require yearly union recertification votes.

The measure, included in a bond restructuring to fix a  current fiscal year deficit, passed the state Assembly but  stalled in the Senate when the Democratic members fled to  prevent a quorum and block a vote. The dispute has grown into a national debate on union power  and become the biggest government confrontation with organized  labor since President Ronald Reagan fired striking air traffic  controllers in 1981.

President President Barack Obama has weighed in on behalf  of the unions, reliable Democratic supporters for decades, and  Republican leaders have told him to butt out.

Union leaders fear the Wisconsin move could be a harbinger  of things to come in other states. In Ohio, the Republican-run  legislature on Tuesday considered a bill like the one in  Wisconsin.

Supporters said it was needed to close Ohio’s $8 billion  two-year budget deficit, which Republicans blame on excessive  promises to unionized workers.

“This isn’t about deficits. This is about union-busting,”  said Evan Goodenow, 46, an unemployed man who was among some  8,000 protesters who converged on the Capitol, in Columbus.