Progressive Thinking

MADISON - This morning, Gov. Scott Walker, who in 2011 succeeded in slashing collective bargaining rights for most public sector workers, signed a private-sector right-to-work bill that makes Wisconsin the 25th state to adopt the policy and has given new momentum to the business-led movement.

For decades, low wage states across the South and Great Plains have enacted such policies, known as “right to work” even though the right to work has nothing to do with them. They really are simply designed to prevent organized labor from forcing all workers in a shop covered by their collective bargaining agreement to pay union dues or fair share fees.

Also for decades. the higher paid industrial Midwest has resisted. Those days are gone, as Wisconsin follows neighbors Michigan and Indiana. While it may take years before the full effect of the new law becomes apparent here, most expect it to weaken unions and drive down the wages of union employees.

"This freedom-to-work legislation will give workers the freedom to choose whether or not they want to join a union, and employers another compelling reason to consider expanding or moving their business to Wisconsin," Walker said in regard to the signing, even though there is little evidence that either claim is true.

Walker’s real motivation is much more likely about politics than job creation: breaking a dwindling union movement in Wisconsin and boosting his standing as the conservative choice for the Republican presidential nomination next year. In the long run, the new laws throughout the region are intended to help Republicans build a favorable electoral map for 2016, by weakening the labor groups that have traditionally provided muscle and money to Democratic candidates in crucial swing states.

So the political ambitions of Scott Walker and his big business donors once again trump the interests of the people of Wisconsin, who still face a lagging economy and a $2.2 billion state budget deficit. Only time will tell how the events of the last two weeks will affect Walker's electability.

MADISON - The Republican controlled Wisconsin State Assembly passed the so-called 'Right to Work' bill this morning. Governor Scott Walker is expected to sign the bill into law next Monday.

The passage of this bill is another step in the conspiracy of multinational corporations and right wing billionaires to rig the economy against average working people. The bill undermines the fundamental freedom of workers to band together, and have a voice in the decisions made by the CEOs of large multinational corporations. When added to the other elements of the conspiracy, encouraging the outsourcing of jobs, driving down the value of the minimum wage, devastating public employee unions, and gutting our generational investments in our schools and colleges, it will accelerate a race to the bottom by shrinking the middle class. It will make it harder and harder for millions of working families shutout of opportunity to work their way up the economic ladder and claim their piece of the American dream.

The heroes in this rigged legislative process are the thousands of average workers who over the past two weeks came to their State Capitol from all over Wisconsin to do that most American of things, exercise their first amendment rights as citizens. The culprits are a conservative majority that is so ideological that they cannot even hear the voices of their own constituents, and are willing to act on fraudulent facts made up out of whole cloth by the special interests they serve. The complete absence of workers coming to the Capitol to support this legislation is a powerful proof that this bill is about the demands of Corporate CEOs to drive down wages and benefits, and has nothing to do with the interests of average working families.

Although the radical brand of conservative who has seized control of the machinery of our government celebrate a present victory, they are actually sowing the seeds of their ultimate defeat. In due time their deliberate rigging of the economy to shrink and shut off the middle class will become an undeniable fact, and will inspire a wave of outrage which big money politics and gerrymandered legislative districts cannot not contain. The conservative “divide and conquer” path to power will not work once the consequences of their manipulation of the economy are fully felt and understood across Wisconsin. Once the vehicle of our economy is driven off a cliff, the wreckage will be visible for all to see. It is a shame that we must re-learn the harsh lessons of the past that when workers have no power in the economy multinational corporations will drive their wages and benefits into the ground. Once this harsh lesson is learned again, the action of today will not stand.

Sen. Kathleen Vinehout is circulating a bill that would create a Wisconsin based Health Insurance Marketplace. Hard-working Wisconsin families will lose health insurance if the Supreme Court rules in favor of the plaintiffs in 'King vs Burwell', a case that challenges whether citizens who buy insurance through the federally facilitated health exchange are eligible for premium assistance.

MADISON - On Wednesday, I unveiled a plan to create a state-based Health Insurance Marketplace as United States Supreme Court Justices opened arguments on a case that could strip Wisconsinites of their health insurance premium tax credits.

Hard-working Wisconsin families will lose health insurance premium credits if the Supreme Court rules in favor of the plaintiffs, and Wisconsin can avert this crisis by creating its own state-based Marketplace.

The U.S. Supreme Court took up a case (King vs Burwell) that challenges whether citizens who buy insurance through the federally facilitated health exchange are eligible for premium assistance. Nearly 90% of the over 200,000 Wisconsinites who signed up for insurance through the federal exchange are receiving assistance.

Over $58 million going to our hard-working families is at risk. "On average, the benefit to Wisconsin families is about $300 a month in credits to cover about 70% of their premium" according to Misra, A. & T. Tsai in  “Health Insurance Marketplace 2015: Average Premiums after Advance Premium Tax Credits through January 30 in 37 states using the HealthCare.gov platform”. ASPE Research Brief. Department of Health and Human Services. Office of the Assistant Secretary for Planning and Evaluation, February 9, 2015, p. 5..”

The bill captures those aspects of Wisconsin’s health care industry that are unique to our state and builds off work already in progress by Wisconsin health plans and providers to create a balance between health quality, costs and access.

The Badger Health Benefit Marketplace is a one-stop shop for small businesses and people who buy insurance on their own. This will give folks a truly competitive market for health insurance and help drive down health costs for everyone.

The Republican fast tracked bill would ban any requirement that nonunion members in the private sector pay union dues. The majority of those speaking Monday were against the measure, viewed as a distraction from Governor Walker’s harmful budget.

MADISON - Six days after the Senate Labor Committee held it's controversial public hearing on the same subject, the Assembly Labor Committee heard testimony into the night on Monday on Assembly Bill 61 – the so-called “Right to Work” bill. The bill would ban any requirement that nonunion members in the private sector pay union dues.

Just like last week's Senate hearing, where opponents vastly outnumbered supporters, the majority of those speaking Monday at the Assembly Labor Committee were also against the measure.

The few supporters, including the state chamber of commerce, said they represented many other people who were reluctant to speak publicly. Backers argue that the change will make Wisconsin more competitive with other states, in particular Indiana and Michigan, and allow workers to decide whether they want to pay union dues rather than have them deducted automatically.

Union members, construction contractors, and other opponents reiterated their arguments that the measure would weaken unions, leading to lower wages and unsafe workplaces. They also questioned who really wanted the law, given that coalitions representing hundreds of contractors and other businesses had formed in opposition, and said it was wrong to rush the bill through in less than two weeks.

In a statement released after the hearing, Assembly Democratic Leader Peter Barca (D-Kenosha) said:

“We just heard hours of thoughtful, compelling testimony from business owners, workers, researchers and everyday citizens who agree that ‘Right to Work’ is wrong for Wisconsin and recognize that it will drive down wages and hurt our middle class. I want to thank everyone who came out today – including those who drove hundreds of miles and waited hours to testify – against this destructive legislation.

“‘Right to Work’ is a distraction from Governor Walker’s harmful budget and it will keep pushing Wisconsin’s economy in the wrong direction. Even the governor himself has said private-sector unions are important partners in economic development efforts that put people to work – efforts the governor and Republican legislators are undermining with this bill.

“We as elected officials must be doing everything we can to restore economic opportunity for our citizens, not tear it down. As Professor Chowdhury from Marquette testified today, this bill would take $3.89 billion a year out of the Wisconsin economy.

“Democrats stand ready to debate this harmful legislation on the Assembly floor and continuing to work toward a stronger economy for Wisconsin.”

This week Sen. Kathleen Vinehout writes about the proposal in Governor Walker’s budget related to the combining of WEDC and WHEDA. Her concern is that as the dollars for economic development grow, the ability of the public to determine how well their public dollars are used does not.

MADISON - “I’ve heard about the cuts,” the Buffalo County man said. “But this budget spends more. Who’s getting more money?”

Folks are concerned about big cuts to the UW; cuts to local schools; scaling back of health programs for the disabled; public radio and TV losing state support.

But the new budget spends $3 billion more than the last. Where is that money going?

One place to look is the Wisconsin Economic Development Corporation (WEDC). Despite its name, WEDC is a part of state government; in fiscal year 2012-13 it received over $62 million from the budget (including about $4 million in federal funds) and the agency can authorize potentially millions more in tax credits.

The Governor’s flagship program turned troubled when auditors found procedures weren’t written down, loans were lost and Wisconsin was penalized. Three Chief Financial Officers left – one after only a day on the job.

I described the creation of WEDC four years ago as putting the cookie jar in a dark pantry with a sign on the door that says, “Trust Us”.

In this budget the Governor combines WEDC with another agency that administers loans: the Wisconsin Housing & Economic Development Authority.

The Governor creates a new board. He kicks off the board the legislators who ask too many questions. The new board will only be private sector folks chosen by the Governor.

The budget adds more money into the mix: $55 million in a revolving loan fund and almost another $10 million in tax credits. Governor Walker then proposes taking existing business tax credits and converting them into refundable tax credits. What does that mean?

Think about the refund you might receive when you file your taxes. The refund comes because you paid in more than you owed. It’s your money coming back.

What if the rules were changed so you didn’t owe any taxes? You still filed your tax return but you owed nothing. A refundable tax credit would still give you a refund check signed by the people of Wisconsin. That’s what’s going on.

Imagine you’re the CEO of a multi-national company that reported sales in billions. You’re making a lot of money. But the tax laws are changed so the company owes very little or nothing at all.

When your accountant files your company’s tax returns instead of paying on what you owe (which is nothing) the people of Wisconsin pay you. This is a refundable tax credit.

And then the budget proposal takes away a few of the rules.

For example, under the ‘qualified new business ventures’, your company would not have to comply with one or more of the current rules: you would not have to be a Wisconsin company, you would not be required to have 51% of your workforce in Wisconsin, and you would not have to commit to keeping your business in Wisconsin.

Reminder: the public purpose of the current rules is to grow good paying Wisconsin jobs.

The public wouldn’t know if you followed the rules or even received the grant because the budget changes the open records laws so the company can never be identified. No data in the agency’s record keeping software can be made public.

I wondered how the auditors would do their work. But then I learned the budget also says the watchdog Legislative Audit Bureau (LAB) won’t complete a program evaluation audit until 2017 and won’t complete a financial audit at all.

An independent private auditor will be hired in 2016. But an outside auditor won’t give us the information we receive from the LAB.

To perhaps add an incentive to companies to play nice with the people in charge of the cookie jar, the Governor takes away any oversight on the creation of a nonprofit company to accept private gifts and grants.

It’s not a big stretch to see companies giving gifts to the nonprofit arm and receiving tax credits from the other arm.

I explained all this to my constituent in Buffalo County. He said, “They took the cookie jar from the dark pantry and put it in a dark castle with a moat around it!”

The sign in front of the moat reads, “Just trust us.”