Paying for the sins of government leadership

Inept is term that comes to mind when listening to the issues in Wisconsin. What fools would give collective bargaining rights to public employees?

In 1906 and 1907 a report was conducted in Boston that detailed mismanagement in the city's government. The report is just as true today and applies not just to Wisconsin, but other governmental entities as well.

The report blamed the mayor and alderman (one could fill-in the blank with school board, commissioner's court, etc.) who, the report said, "appointed department heads who lacked technical qualifications, and employees, therefore, had no incentive to perform efficiently themselves." This appears to be the case in most governmental entities since they adhere to the 'good ole boy' code of employment and promotion. In the case of Wisconsin the bad teachers get to stay on board due to a clause in their collective bargaining agreement that prevents one from being dismissed from their job for in ability to perform.

Things really come to light when governmental entities (Texas school districts) have deficits, have exercised poor judgment with regards to financial investments and financial budgeting, and have unfunded pension liabilities. Lack of funds to pay for public sector pensions is becoming a lighting rod for angry taxpayers suspicious or mistrusting of government, their employees and union representatives.

Why are taxpayers so angry? First, pension deficits can be huge and significantly add to a budget deficit. Second, the decisions to challenge pension payments often involve public safety employees and teachers (taxpayers hate coming out against these groups of employees in most cases for they know the value of the service provided). Third, the most divisive, few retiring from private sector employment have a defined benefit pension like the public sector and are wondering why they have to pay for someone else's retirement. Most private sector employees have to pay for their own retirements.

In the 'old' days a good retirement plan offset lower wage paying jobs. However, in this day and age the low wage paying jobs in the public sector pay more than the wage paying jobs of the private sector. To help understand the retirement discontent by taxpayers perhaps a dollar and cents comparison is in order: average government worker is promised $2.85 per hour worked from his or her retirement plan, while the average private sector worker with a pension receives only $0.41 per hour worked. Public workers in Wisconsin have a sweet deal. Most of them put less than 1% of their pay into their pensions and 6% of the cost of health insurance premimums. Who is going to be on the lake fishing while enjoying retirement? Thus the disconnect and the discontent on behalf of taxpayers. Then you get a scenario like in Wisconsin and it all comes to light and taxpayers really get 'heart burn'. Especially when they realize there is a $2.44 difference in retirement benefit pay. Pension warfare is alive and well and politicians will be forced to deal with the issue now that taxpayers have taken their heads out of the sand.

In another report about public sector employment it was stated "many seem to be employed in the public sector because they were not strong leaders and do not have the leadership skills to make it into similar positions with private companies." The report was not addressing the public sector employees as individuals without necessary skills, merely pointing out the possible fact existed that governmental entities don't have the most capable individuals employed. The report might be on to something. Private industry seems to have more capability to solve problems with limited resources than public entities with the same available resources. One would think by now issues regarding education, public safety, etc. would be solved.

Public v. Private is a great debate.........