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Ellen Belcher is the Dayton Daily News opinion pages editor. She writes about state government, education, the environment, higher education and all things Dayton.
Martin Gottlieb is an editorial writer and columnist for the Dayton Daily News opinion pages. He focuses on the political process itself and does such national issues as war, the economy, taxes and Social Security, as well as a hodge-podge of local and state issues.Home > Blogs > A Matter of Opinion > Archives > 2009 > August > 02 > Entry
Editorial: Layoffs not only option for government
Gov. Ted Strickland keeps saying that he thinks there will be a second federal stimulus.
His hope for another bailout comes up a lot because Ohio would be insolvent California today if it weren’t for the $5 billion-plus that Washington has sent to the state. This one-time money creates the illusion that Ohio’s budget is balanced.
Without another injection of federal aid, Ohio could be $8 billion short in two years. The coming shortfall will exist in spite of multibillions being cut from the current budget.
Put another way: If you’re unhappy now about cuts to libraries or programs that keep seniors in their homes, just wait.
Moreover, that’s the best-case scenario. The belief is widespread that more slashing will be required to get through the next two years and that it will begin again soon.
Ohio — from state government to school districts and townships — can’t pin its hope on a federal government that is awash in red ink. Moreover, there’s no way that, as the state keeps cutting, local taxpayers will fill in the losses that roll down hill by approving more and more levies and tax increases.
The stimulus gives Ohio — and counties, cities and schools — a window. They can use it well or squander it. But there isn’t a local government or school district in the region that can keep doing what it’s always done the way it’s always done things.
And because so much of any government’s costs are tied to personnel, there’s no way to reduce costs without cutting spending on employees.
This is not a call to war with public employees or their unions. That said, the hard fact is that if government is going to reduce its expenses, buying fewer paper clips will not do it.
Voters should not let their elected officials off the hook by passively accepting that laying off people is the only answer. Communities should not be held hostage to the argument that mass layoffs — and punishing service cuts — are the only option.
In fact, there are myriad changes in contracts, practices, work rules and state law that can reduce government spending without destroying the fabric of public services.
For instance:
• The “step system,” wherein public employees and teachers for many years and in quick succession get two raises annually — one for time on the job, one as a cost-of-living adjustment — is horrendously expensive and masks the increases employees really are receiving. (Moreover, in hard times, when salary freezes are imposed, the freezes don’t always apply to the step raises.)
• Public employee pensions are phenomenally generous, and they reward people with cushy deals at ages that are unheard of in the private sector.
In addition, the pensions discourage natural turnover once a person has any significant time on the job. Creating what amounts to “golden handcuffs” results in a work force that is generally older and more expensive.
• The state law that requires binding arbitration when police and fire unions can’t reach agreement forces managers to make offers they can’t really afford in order to appear reasonable. Arbitrators can’t modify either side’s last and best offer; they have to pick one’s side proposal.
• Overtime is a racket, especially in police and fire departments because of holiday pay and contracts that allow too many first-responders to be off at the same time, resulting in others being called in and paid premium wages.
• Some governments let employees cash out large amounts of unused sick leave when they quit or retire.
Public service is important, even dangerous, work. Communities need talented and exceptional people choosing it as a career.
But Ohio is not the rich state it once was, and that’s true for local communities, too. Perks that were affordable once are not any more.
Some of the unavoidable changes can only come from the state — pension and collective bargaining reforms, for example.
But other savings will require local elected officials and administrators to speak truth to workers and to their communities about what each can expect in a new day.
Bailouts are not forever. Some problems we created ourselves and have to fix on our own.
Permalink | Comments (10) | Post your comment | Categories: Editorials, Ellen Belcher, Law Enforcement and Public Safety, Ohio government, Ohio politics
Comments
By Skeptic
August 2, 2009 12:46 AM | Link to this
The best way to cut costs is to form a regional government and stop duplicating services for every little town in our area. The best way to smaller government, is to consolidate.By Carl
August 2, 2009 9:17 AM | Link to this
First the word downhill is one word, not two. SEcond it sounds like a little bit of sour grapes here. As for teachers, who are grossly underpaid receiving a huge pension, please note they paid large amount of their income into the Ohio pension plan—sort of alike a forced savings account. Otherwise many teachers would have looked to other, higher paying jobs, for sustenance. It’s nice for a newspaper who can’t find anything wrong with Democrats squandering 750 billion extra in a stimulus, slight though it is, bill, can find fault with a step program for paying teachers. Note that most districts have steps that STOP for certain years!!! So teachers after 10 years or so don’t receiving another increase until 15 years or 18 years; then another hold until several more years. The vitriol in the editorial is showing!————— Now if you talk about administrator overpay that’s different. And the extra people like athletic directorships and computer maintenace people and coaching staffs filled with “stars” like Simmons and Meadows… Too many times the adminstration positions in districts are filled with Peter Principal folks whose claim to fame is they were a sports star sometime in the past, rather than they were kid-oriented and parent-oriented for their district. They are oriented towards filling jobs with the MCI plan—Friends and Family.—————- As for libraries, like mmost recessions they need to cut; that includes cutting the 50% increase in their replacement levy. A renewal would have been safest at no increase; a replacement of same millage with the requisite higher millage due to property value changes would have possible, since most people don’t understand the cost games in the various levies.—————-As for keeping seniors in their homes, maybe that’s not the cheapest way to do things. It sounds good, but it’s like having charter schools, all it does is increase costs and sounds good to the do-gooders.—————-I think we need to look at compensation levels and gross and net incomes for the newspapers. Perhaps a group that pontificates socialism and against so many other professionals, needs some sunshine on their compensation?By Carl
August 2, 2009 10:47 AM | Link to this
Another great savings for the state would be all the athletics program costs in all the public schools and the public universities and communities colleges. Since when does the state need to spend $3,000,000 for a head football coach for OSU? Add on the benefits costs and you must have $4,500,000 there. Reduce the assistant coaches and voila, great savings. Eliminate the cost of athletic scholarships with their special dorms and meals and travel for athletes and we have saved millions, if not billions, for the state in all the athletic programs at colleges. Eliminate the sports programs from the locally heavily tax-subsidized Sinclair community school and we have more great savings. Kids should go there to study, not get scholarships and play sports.By Fiscal Responsibility
August 2, 2009 11:47 AM | Link to this
So the cash cow has dried up? The golden goose doesn’t lay anymore? You’re complaining? There isn’t any money in the Ohio treasury? Why? I don’t understand!? Will someone explain it to me? My savant abilities do not apply to income vs. cost, budgets, expenses ect….seems Columbus is afflicted with the same…By David
August 2, 2009 4:08 PM | Link to this
You wrote: Ohio — from state government to school districts and townships — can’t pin its hope on a federal government that is awash in red ink. Moreover, there’s no way that, as the state keeps cutting, local taxpayers will fill in the losses that roll down hill by approving more and more levies and tax increases. END OF YOUR QUOTE: I agree. Many local governments, cities and Twp have been depending on state funds. Those days are over too. What this means at the local level is that if people want services, police, fire, streets etc they, ,meaning the voters, are going to have to carry the burden on the local level. I wish people had a better understanding of this budget crisis. Maybe then they could have a better understanding of the options and solutions.By Public employee
August 2, 2009 4:12 PM | Link to this
Most public employee salaries and pensions are not “phenomenally generous.” After paying 10% of my salary into a state retirement system for 25 years, I expect to get a pension of about $30,000 a year. In spite of the fact that my spouse and I both paid into Social Security long enough to qualify for full retirements benefits, I will lose two thirds of that benefit due to federal windfall tax laws. I challenge the DDN Editorial Board members to full disclosure on what they expect their pension benefits to be, including Social Security which they will receive in full even if they are millionaires.By Dave
August 2, 2009 5:10 PM | Link to this
So as an alternative to layoffs, you advocate cutting pay and benefits for public employees? What creative thinking! What courage! What a crock!By Public Employee 2
August 2, 2009 8:43 PM | Link to this
The writer states these points should be of great concern to the taxpayers and citizens of our local and state communities: step increases for public employees. The process in which public employees receive a merit increase at specified times in their career. State run pension funds are very generous etc… the writer does not explain the system and how it works. Albeit it has it points of breakdown, for instance, the ridiculously easy manner a public employee can apply for and be approved for a “medical” retirement. A few are truly warranted, the intention of the law, most are fraudulent at best. However, every public employee in Ohio pays between 9 and 10% of their salary towards their pension. The county contributes between 13 and 16%. The writer neglects to mention up until very recently the majority of employees in the private sector who worked in the auto industry, NCR, Communications industry, manufacturing, etc… received a company pension of which they contributed nothing and social security without windfall penalties. Public employee pensions until recently lagged significantly behind the former combination. Arbitration, Police and Fire overtime, buyout of sick leave are all the result of Unions demanding more from the public sector employee. The writer also neglects to mention Governor Dick Celeste’s was hell bent on paying the unions back for their support he signed a collective bargaining bill that empowered the unions and emasculated public sector management rights. The chickens have come home to roost, it was only a matter of time before the house of cards caved in upon itself. Is it fixable, I think not. Ohio is in for a long haul on the road to recovery and just as they contributed to the demise and loss of jobs in the private sector, public employee unions will continue to cost the citizens of Montgomery County millions of dollars. Your suggestion that personnel cuts is not the only solution is accurate, however, most public service agencies have made all the other cuts possible, it appears the only cost cutting solution left, regrettably, is personnel. Thank Dick and the public service unions for that.By bob
August 3, 2009 11:38 AM | Link to this
Dear public employees,DDN hit it on the head.When it comes to the x-tras [ beyond pay]the tax paying public is waaaaaaaaay behind the public “servant”.This is because no-one is entitled to collective bargaining anymore.Bring back the unions or get them out of government because we can’t afford the present situationBy David
August 3, 2009 12:06 PM | Link to this
This seems to me a divide and conquer tactic. Let’s me say your job isn’t as important as my job. Let’s have less people at the DMV office, of course unless I’m there renewing my license. I want less Police, of course unless my house is broken in to. Bashing each other is not productive.