|
 Unions contributed $15.1 million to the campaigns of Illinois
lawmakers who put a constitutional amendment on the ballot to make union powers
permanent.
That averaged $119,000 per “yes” vote. State lawmakers who voted against the
ballot question averaged $9,300 in union contributions.
In Illinois, government unions already possess unprecedented power to call the
shots on everything from opening schools to how much the state spends. This
amendment, Senate Joint Resolution Constitutional Amendment 11, would
permanently raise the cost of government services.
Most importantly, it would give unelected union bosses – through the government
leaders their political contributions elect – much greater power over what
happens in Springfield than taxpayers have.
For more than two decades, Illinois labor market performance has persistently
lagged the rest of the country. Less job creation and fewer prospects for
workers have meant longer unemployment for everyone. If SJRCA 11 becomes
permanently enshrined into Illinois’ constitution, the state’s labor market
performance will continue to lag.
SJRCA 11 creates a protected class of public sector unions at the expense of
everyone else, especially job seekers.
Illinois already has some of the most unfair laws in the region when it comes to
negotiating with government worker unions. That, in turn, drives up the cost of
government services.
A ballot measure to make permanent this unfair power dynamic shouldn’t surprise
anyone.
By creating a “fundamental right” to collective bargaining for
employees – including government workers – SJRCA 11 would guarantee unions
continue this control over lawmaking and the allocation of public funds in
Illinois. It would also harm the state’s economy.
High union membership in the public sector crowds out private sector hiring
While only 8% of private sector workers are members of a union, 55% of public
sector workers are union members, according to data from the Current Population
Survey.
In the public sector, the ability to bargain over anything means the cost of
government services will only continue to increase. Public sector union demands
tend to lead to higher taxes despite fewer or lower quality services. This is
because public sector unions are in the business of raising salaries and
benefits, and protecting job security regardless of employee performance. In the
case of police unions, it could also mean limits on investigation of officers
after alleged wrongdoing and the destruction of disciplinary records. In the
case of teachers unions, although union bosses claim protecting students is
their top priority, unions can be a roadblock to investigating teachers accused
of misconduct.
The bulk of evidence also suggests public sector hiring reduces opportunity for
job seekers. If public sector hiring did not crowd out private sector hiring,
then an increase in public hiring would be associated with a decrease in the
unemployment rate. However, data from all states from 1981-2016 reveals higher
public sector employment is associated with higher unemployment rates. This is
because wages in the public sector are relatively unresponsive to productivity
differences. Higher public sector employment may also lower productivity by
reallocating resources from the higher- to lower-productivity sectors.
[ to
top of second column] |
History shows why enshrining government union power
in the Illinois Constitution is dangerous
In 1970, government unions succeeded at enshrining
pension protections in the state’s constitution. The result: the
worst pension crisis in the nation.
The state has increased pension spending by more than 533% during
the past 20 years, adjusting for inflation. Health insurance
spending has gone up 127%. As pension debt continues to increase, so
do required pension contributions. Pension contributions now consume
26.5% of the state’s general funds budget, up from less than 4%
during the years 1990 through 1997.
As pension costs capture an increasing share of the state’s budget,
the state raises taxes while at the same time forgoing desperately
needed public investments. The estimated total cost of pensions had
soared to nearly $28 billion on average each year in forgone income
and direct payments to the pension systems by 2017.
At the local level, property taxes go up and yet an increasing share
of municipal budgets go to pensions instead of key services and new
public investments. From 1996 to 2016, Illinois property taxpayers
sent an additional $396 million to police departments, but pensions
consumed a vast majority of these funds. Statewide, 81 cents of
every additional property tax dollar for police departments – more
than $322 million – went to pensions rather than police protection
services. The same held true for fire departments, which levied an
additional $260 million in property taxes from 1996 to 2016. Most of
that money went to pensions. Statewide, 78 cents of every additional
property tax dollar for municipal fire departments – more than $200
million – went to pensions rather than fire protection services.
The fact that nobody could have predicted a slowdown in economic
growth would have led to declining investment returns and lower
inflation than the pace of pension benefit increases should serve as
a warning. Economic policy should adjust based on changing economic
conditions. It should not be permanently enshrined into the state’s
constitution.
Unfortunately, in 2022, history could repeat itself. Illinoisans
will vote on a constitutional amendment that attempts to give
government unions unlimited power forever: SJRCA 11.
The amendment would permanently allow government unions to negotiate
anything and everything into their collective bargaining agreements
– not just wages and workplace benefits – giving most public sector
workers the right to go on strike for just about any reason.
SJRCA 11 would hurt the vast majority of Illinoisans
If SJRCA 11 is added to the constitution, all Illinoisans will lose
again. The evidence is overwhelming that the unemployment rate is an
increasing function of unionized public sector employment – reduced
labor market freedom – and that policymakers should: (a) not elevate
the state’s minimum wage too aggressively; (b) limit the extent of
government employment; and (c) favor laws limiting the extent of
government union collective bargaining agreements.
SJRCA 11 does the opposite.
Click here to respond to the editor about this article |
