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Unions

States employ 19 million workers - 15 percent of the nation’s workforce and six times as many workers as the federal government employs, according to the State Budget Crisis Task Force.

Salaries and benefits for those employees account for around 30 percent of the state general fund in most states. Benefits alone accounting for more than a third of that cost, meaning that about 10 percent of state general fund expenditures now go to benefits for currently employed workers, many of whom are represented by unions. The cost is growing at a rate that cannot be sustained. To have any hope of achieving fiscal health in the future, states will need to redesign their benefit systems and evaluate state employee salaries.

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    • SOLUTIONS

      Why government employee collective bargaining laws must be reformed now

      State Budget Solutions | by Bob Williams | December 5, 2012

      There are three important lessons from the Wisconsin collective bargaining battles over the past eighteen months:

      1. The power of the government-sector unions and their impact on elections is greatly overestimated. With the November 2012 victory for  Senate Republicans to regain control of the Wisconsin Senate,  government employee union  suffered their sixth  major defeat since March 2011.

      2. When given a choice, government employees will quit their union in large numbers.

      3. Government employees' salaries and benefits, particularly pensions, are financially unsustainable in most states and collective bargaining reform is needed.

    • SOLUTIONS: California

      Reform Before Revenue: How to Fix California's Retiree Health-Care Problem

      The Manhattan Institute | by Stephen D. Eide | October 31, 2012

      This paper examines the ongoing fiscal crisis caused by health-care plans for retirees (known as "other post-employment benefits," or OPEB) in one of the hardest-hit states, California, and outlines necessary reforms that should come before tax increases or cuts to government services.

    • SOLUTIONS: Wisconsin

      Benefit Reform Could Save School Districts Hundreds of Million$

      The MacIver Institute | November 29, 2011

      Public officials can help alleviate their budget crunches by offering competitive, not exorbitant benefits.

    • SOLUTIONS: Ohio

      Solving Our State Fiscal Challenges

      The Buckeye Institute | by Matt A. Mayer | November 29, 2011

      Advocating for collective bargaining reforms because unless base compensation adjustmentst happen, taxes will have to go up.

    • SOLUTIONS: Washington

      Top 10 Ideas to Cut Waste, Balance the Budget and Stimulate the Economy Without Raising Taxes

      The Freedom Foundation | by Amber Gunn | November 4, 2011

      Ten ideas to cut waste and balance the buget without raising taxes, including more efficient K-12 funding, spending high education tax dollars more wisely and rein in state employee salaries and benefits.