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Governors targeting powerful public employee unions

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By Jack Torry, Washington Bureau 7:08 PM Saturday, February 19, 2011

WASHINGTON — With Ohio and most states across the country trying to eliminate billions of dollars in budget deficits, some Republican governors want to generate savings by targeting the powerful public employee unions.

Gov. John Kasich and Wisconsin Gov. Scott Walker, both elected in the Republican wave last year, are backing efforts to sharply curtail the rights of teachers, state workers, firefighters and police to bargain with state and local governments.

State and local officials have warned that rising labor costs are forcing them to scale back spending for education and health care. A Boston College study last year shows that salaries accounted for 37.3 percent of state budgets in 2008, while Cincinnati officials claim that 83 percent of the city’s $340 million general fund is eaten up by labor costs.

In addition, rising pension and health care costs from past labor agreements are causing a long-term threat to some state budgets. The Pew Center on the States last year concluded that there was a $1 trillion gap between what states have promised workers in pensions, health and retirement benefits and what states have set aside. Other analysts have pegged the gap at $3 trillion.

“It’s (pensions) really starting to squeeze the state budgets,’’ said James Sherk, a senior policy analyst in labor economics at the Heritage Foundation, a conservative organization in Washington. “It’s not the only factor. Another major factor is Medicaid. When the states are in a pinch, you have to look for all the savings you can find.’’

By doing so, Kasich, Walker and Indiana Gov. Mitch Daniels appear to be following the example set by Republican Gov. Chris Christie of New Jersey, who has launched a testy campaign against public employee union leaders, who last week complained that union leaders are “greedy and they’re selfish and self-interested.’’

But Republican governors and lawmakers are facing mounting and determined opposition from public employee unions, who have organized massive protests in Columbus and the Wisconsin capitol of Madison. President Barack Obama took the unusual step Thursday of saying Walker’s plan “seems like more of an assault on unions.’’

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