A Different Approach Toward Public Employees

The great recession and its aftermath has made life more difficult for many families and small businesses. It has also put tremendous financial pressure on state and local governments across the country, as they have struggled with falling tax revenues and rising demand for social services. As a result, government spending in all areas has come under intense scrutiny, including the salaries and benefits of public employees.

Some states, like Wisconsin and Ohio, have used the fiscal crisis not only to scale back employee benefits but also to weaken the collective bargaining rights of teachers and other public sector workers. Many people believe that these efforts are part of a strategy to undermine labor unions and reduce their influence in elections. We have all witnessed the contentious and divisive battles that have resulted in these states, including the ballot referendum last month in Ohio where voters resoundingly repealed the anti-labor law signed in March by Governor John Kasich.

By contrast, Massachusetts has taken a different approach in addressing the state’s fiscal challenges. The state legislature and Governor Patrick have been resolute in tackling state spending and have not shied away from making the difficult decisions required to maintain a balanced budget. However, in dealing with public employee compensation and benefits, the legislature and Governor Patrick have pursued a respectful, collaborative approach when seeking concessions and reforms. This approach has been quite effective in responsibly managing the state’s finances, saving taxpayer dollars, preserving jobs, and minimizing cuts to essential services like education, public safety, and healthcare.

Public sector workers in Massachusetts and their union leaders understand that it has been necessary to make wage and benefit concessions to avert layoffs and maintain services. They understand that fair and reasonable pension and healthcare reforms have also been necessary. They get angry just like other taxpayers when they hear about pension abuses, and they want loopholes in the law to be closed. Despite high profile stories of abuses, the reality is that the average public sector retiree in Massachusetts receives an annual pension (to which he/she contributed each year while working) of $26,000 and does not receive any social security.

Earlier this year, the state legislature passed an important municipal healthcare reform bill designed to help cities and towns control rapidly rising healthcare costs while preserving quality healthcare for municipal employees like teachers, police officers, firefighters, and DPW workers. Legislators and Governor Patrick listened carefully to all perspectives and, although the process to reach agreement on the necessary reforms was difficult and sometimes contentious, the final bill received the support of both municipal and labor leaders. This was a significant accomplishment.

Last month, the legislature successfully tackled pension reform, another challenging issue that provokes fierce debates. The bill that passed is projected to save the Commonwealth more than $5 billion over the next 30 years while shoring up the long-term solvency of the public pension system. Building upon reforms passed in 2009, the legislation raises the minimum retirement age for new public employees, eliminates incentives that encourage some workers to retire early, and prevents inappropriate salary spiking to increase pension benefits. Like the negotiations over municipal health insurance earlier in the year, the process of crafting the legislation was collaborative and respectful of the views of public employees and retirees.

Massachusetts’ ability to navigate through the recession and pursue significant reforms that improve the state’s fiscal stability led to Standard and Poor’s upgrading the Commonwealth’s bond rating from AA to AA+. This is the highest credit rating in the history of the state, and enables the state to benefit from favorable interest rates when issuing bonds to finance capital projects.

At the same time, we have been able to preserve good labor relations with our valued public employees. That is a very different outcome from many other states.

I welcome your feedback on public employee compensation and benefits or any other issues. Share your thoughts at www.Facebook.com/RepJasonLewis or visit our website at www.RepJasonLewis.com. You can also reach me at 617 722-2017 or by email at Jason.Lewis@mahouse.gov.

Jason Lewis
State Representative
31st Middlesex District – Stoneham and Winchester