Quote:
Originally Posted by Riot
"As a state economist and policy analyst, I was surprised that no one asked me about this proposal. I analyzed it for its economic impact. If public employee salaries are cut (through increased withholdings as proposed) by enough to fill the $137 million budget gap, the resulting drop in consumer spending will lead to:
1) a loss of over 1,200 nongovernment jobs;
2) a loss of about $100 million in business sales statewide;
3) a loss of nearly $35 million in personal incomes of nongovernment employee households;
4) ironically, a loss of nearly $10 million in state tax revenues."
-- Robert Russell, economist and analyst, Madison.
Wisconsin Public Radio interview
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4) ironically, a loss of nearly $10 million in state tax revenues."
Wrong! When you add in the $137 million saved by having public workers contribute to their own health and pension plans you have a net revenue gain of $127 million for the State.
Divide 137 mil by 39,000 (number of State workers) you come to just over $3,500 per employee.
Wish private citizens were offered such a deal!
BTW I'd like to see some Madison professor explain how graduation rates for high school have been steadily rising while ACT scores have been steadily going down? New Math or are teachers 'cheating' students?