May the Nation turn its eyes to the Badger State. In response to its budget deficit issues Wisconsin has dared to question the preeminence of union demands over the needs of the public at large. In less than 8 months, since the 2010 elections, the State has begun reining in burdensome costs and recast its financial position from billion-dollar deficits to million-dollar surplus.
How is this being accomplished? Draconian cuts? Ending the social safety net? Throwing grandma off the cliff? No. None of that.
Small adjustments to large spending programs can reap very significant results. For example:
- Zero-based budgeting. Don’t start with the assumption we need 100% of what was spent last year, and add a minimum increase (a la CPI plus). Start with zero – then ask is the program effective, is the spending appropriate, do we need more, can we make due with less. Instead of government growth-by-design, as is the case with baseline budgeting, we end up with right-sized government in response to the needs of the day.
- Limit collective bargaining for public employee unions on non-wage issues. This simple change allowed school districts to place teacher’s health insurance up for bid, rather than be forced to buy coverage from the union-owned health insurance carrier. The result – school districts around the state are saving hundreds of thousands of dollars for the same coverage, are able to spend more money in the classroom, including hiring more teachers, AND some districts are even considering LOWER TAXES in their next fiscal years.
There is so much hyperbolic rhetoric in our national debate it seems as if there are no answers, no direction we can turn to make changes in this country. We are left in malaise. That's not what makes America exceptional. The reality is WE CAN get our financial house in order. You and I do it with our personal finances month in, month out. Government can do it too. All it takes is desire and commitment.
The founders of our Republic saw the states as civic laboratories, where public policy could be deliberated, enacted, tried and tested. Today, let our state and federal governments look to Wisconsin and use its experience as a guide. Forward!
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