More bad news for the postal service came when it announced that it would be ending Saturday Delivery. The debate rages on about who is to blame for the money issues that face the institution. Unions are angry and still contend that Congress is to blame for their problems and not the drop in volume of mail being sent in our current times.
The 2012 election is now in the rearview. While the election proved to be a successful one for many Democratic causes, there were still many signs for optimism for those looking for reform of the public sector.
Perhaps the highest profile issue concerning the public sector was a ballot proposal in Michigan that would have enshrined collective bargaining rights for government employees into the state constitution. Many were very nervous that such a strictly binding proposal would hinder contracts in the state for years to come. The proposal failed, and the vote wasn’t all that close, with only 42% of voters supporting the proposal.
Is it ever enough? That’s what citizens should be asking in Newark, where the teachers are claiming they are subject to “indentured servitude” for being forced to consider an “inhumane” collective bargaining agreement that many consider very union friendly.
The average Newark teacher’s pay is $57,926, according to teachersalaryinfo.com. That constitutes “indentured servitude”?
As a part of EAGnews’ continuing school spending series, we revealed that the Richmond, Virginia school district spent a whopping $448,997 on hotels and $135,761 on a California-based travel agency in 2010-11.
The title of the series is “Where Your School Dollars Go…” and the educrats running the show in Richmond can’t seem to come up with a straight answer for that question. Maybe that’s why government schools never seem to have enough money.
Sound financial management clearly wasn’t a concern to any party involved in the recent contract negotiations in Chicago Public Schools.
They were warned that new labor expenses might result in a credit downgrade for the financially-strapped school district, and they chose to ignore it. Now it has comes to pass. The credit rating agency Moody’s has downgraded the school district for the second time in one quarter. Moody’s wrote:
The teachers’ strike that appears to have been settled, badly, last week in Chicago is a window onto the public-be-damned mentality so common in government unionism.
The numbers make it clear that teachers in the financially strapped district should get no raises for at least a few years. They also make clear that costs for pensions (legally difficult or impossible to cut for current teachers without their approval) should be placed on a downward path by reducing them for new hires or requiring more employee contributions.
The successful business leaders that sit on the Chicago Board of Education must have checked their brains at the door when they went into the negotiating room with the teachers union. How else could they possibly negotiate a contract that the school district can’t possibly afford?
Truth be told, if board member Penny Pritzker’s Hyatt Hotels operated that way, they’d be out of business. But, alas, this is government. They strike deals with unions and figure out how taxpayers will fund it later.
The Inglewood, California school district has slipped closer to financial ruin now that S&P has downgraded its credit rating to BBB-minus.
The credit agency stated that the district could improve its status if it gets spending under control and accepts a $55 million bailout from the state. It also said the rating could worsen if the school board doesn’t act quickly.
As Democrats convene in Charlotte this week, they likely will double down on their claim that Bain Capital is really the Bain Crime Family. They will accuse Republican nominee Mitt Romney and Bain’s other “greedy” co-founders of stealing their profits, evading taxes, and lighting cigars with $100 bills on their yachts. But Democrats will ignore this inconvenient truth: Bain’s private-equity investments have enriched dozens of organizations and millions of individuals in the Democratic base — including some who scream most loudly for President Obama’s reelection.
The politicians are once again in a panic over looming automatic budget cuts – known as sequestration – despite the fact the plan was set in motion many months ago.
Naturally, those in the educational establishment are running around as though their hair is on fire.
Get The Facts
"A Primer on Government Pay"
"Two Americas: Public Sector Gains in Recession"
"A $176 Billion Gap for Public Pensions"
"Collective Bargaining Doesn't Work in the Public Sector"
"The Little State with a Big Mess"
ENGAGING WITH OTHERS
October 26, 2012
Phil, on Detroit News
October 25, 2012
Phil, on Newsvine
October 23, 2012
Phil, on Madison
September 17, 2012
Bill, on Huffington Post
September 01, 2012
Bill, on Huffington Post