Walker's "tools" consist of
- Act 10 mandated loss of schools' collective bargaining rights for matters outside of salary
- Note: benefits are outside of salary
- Walker recommended that school administrators reduce teacher benefits packages by requiring "teacher contributions" to prevent spending cuts.
- 5.8% of salary toward pension
- 12.6% of health premiums
Full text of Act 10: Wisconsin's infamous collective bargaining bill.
Case Study: Milwaukee
Gov Walker claimed that with a $42m reduction to Milwaukee teacher benefits, spending cuts would not be needed at Milwaukee Public Schools.
Milwaukee teachers reduced their benefits and salary by $48m and the school was still forced to lay off 519 school employees (354 teachers).
Cullen Werwie, spokesman for Gov Walker, boasted regarding Milwaukee:
In other schools districts that have utilized the tools available to them, class sizes are going down, budgets are balanced, taxes are held in check.
| Milwaukee Teacher concessions | 2011-12 | 2012-13 | ||
|---|---|---|---|---|
| 1 | Actual Savings | Collective Bargaining | $48m | $46m |
| 2 | Alternative Savings | Walker's "tools" (MTEA's accurate calculation) | $36m | $36m |
| 3 | Alternative Savings | Walker's "tools" (Gov Walker's flawed calculation) | $42m | |
| 4 | Alternative Savings | Walker's "tools" (WH analysis of MBSD-May 5) | $20m |
Table description:
- Milwaukee teachers settled on $94 million in concessions for 2011-13.
- On June 8, 2011, Milwaukee Teachers' Education Association released an accurate calculation of Walker's "tool" savings
- In March 2011, Walker proposed Milwaukee savings of $42 million. His calculations were flawed, in part, because he estimated 5.8% teacher pension contributions by calculating 5.8% of all staff salary.
- On May 5, 2011, Milwaukee Board of School Directors estimated the effect of 5.8% in pension would be $19,691,054 and "The 12 % in benefits does not apply as this is not our health care benefit plan, it is the state's." It is unclear whether "The 12% in benefits" is meant to indicate a 12% contribution to health premiums. Wisconsin Hypothesis' prior analysis assumes MBSD to be indicating that Walker's "tools" would not produce savings via staff health care contributions.
Through collective bargaining, Milwaukee teachers settled on higher concessions than what was required under Gov Walker's plan.