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Senate Bill 5 Reforms
needed to Help manage Costs
By State Senator Keith Faber
President Pro Tempore, 12th District
March 28, 2011
Reforms in Senate Bill 5 Needed to Help Governments Manage Costs,
Workforces during Difficult Economic Times
Many of you have contacted my office to express your opinions on Senate
Bill 5, and I sincerely appreciate your participation in the process.
Your opinions were noted, and I welcomed the many constructive
suggestions for improvements in the bill. As I said in my speech on the
Senate floor, Senate Bill 5 is a much-needed reform of Ohio’s public
sector collective bargaining laws. Passed in 1983, these laws have
remained unchanged despite major changes in Ohio’s economy. Today,
reform is necessary to adjust to the new economic realities of 2011 and
to better equip government at all levels to deal with our current
economic situation.
Senate Bill 5 is simply about empowering state and local governments to
better manage their workforces and control costs to live within the
taxpayers’ means. Just two key provisions, asking public workers to pay
15 percent of their healthcare insurance costs (most private sector
workers pay 23 to 30 percent of their healthcare expenses) and their
own share of their own pension (the government employer will still pay
the full employer share) will save millions of dollars and thousands of
jobs. In fact, the Columbus Dispatch estimated that these two
provisions alone would save roughly $74 million for central Ohio local
governments. That equates to roughly 1,500 policemen, firefighters and
teachers whose jobs could be saved when budgets are trimmed just by
bringing these two benefits more in line with those of average Ohioans.
One of the most difficult aspects of addressing the concerns of my
constituents has been fighting myths that have risen out of a fear of
change and the unknown. Many of these concerns are driven by the same
financial considerations that impact every day Ohioans, 400,000 of whom
have last jobs and countless more who have had wages, benefits, and
hours cut due to Ohio’s economic woes. It is precisely this economic
situation that this bill and other reforms to state government are
directly aimed at addressing. We must reform and transform Ohio to help
create the environment for Ohio businesses and companies to create jobs
Ohioans need.
I understand change is hard and it is even more difficult when various
interests take to distorting or misleading people for their own
purpose. For this reason, I encourage everyone to seek out more than
one source for information. If the claims are extreme, they probably
are aimed at motivating by fear more than fact.
Here are just some of the myths we have gotten based upon calls,
emails, or other questions to our office.
Myth: The bill will hurt
the middle class.
Fact:
Senate Bill 5 will empower the middle class in Ohio by restoring the
ability of local governments to control their budgets. A common
misconception is that this bill will so drastically affect wages that
local economies will be devastated. This is simply untrue and does not
reflect the fact that money used to pay for public servants’ salaries
comes directly from the taxpayers. The common sense reforms in Senate
Bill 5 will prevent layoffs and keep more teachers, firefighters and
police officers on the job. It will help state and local governments
better manage their work forces by using some of the same tools that
have allowed significant productivity improvements in the private
sector.
Myth: This is a
politically motivated reform that would “strip away collective
bargaining.”
Fact:
Senate Bill 5 does not eliminate public employee unions and does not
prohibit collective bargaining over wages, hours, or terms and
conditions of employment. It does try to balance the previously
one-sided negotiations that were slanted towards the unions when the
law was first passed by increasing transparency and preserving certain
management rights.
Myth: This bill was
“rammed through” and the unions and Democrats could not participate.
Fact:
The process for Senate Bill 5 has been more deliberative and has taken
longer than the Democrats allowed for consideration of the 1983
collective bargaining bill. The Senate spent roughly a month on this
bill held numerous hearings and took testimony from 70 plus witnesses
who were asked hundreds of questions by Senators for and against the
bill. I spent over 20 hours listening to testimony, both for and
against this bill. Furthermore, I pleaded with the unions and Democrats
to offer constructive suggestions for this bill, but all I was told
was, “Kill the bill.” Throughout the process, and despite comments from
the Democrat Senate members that the current system needed improvement,
not one change to Senate Bill 5 was offered by the other side.
Myth: The Senate has
exempted themselves and their staff from the provisions of this bill.
Fact:
When the Democrats passed public worker collective bargaining in 1983,
they exempted their legislative employees from collective bargaining.
Nevertheless, all Senate employees and elected officials pay 15% or
more of their healthcare premium and 100% of their employee
contribution to the retirement system. This is exactly what is required
by Senate Bill 5. The pay for Senators has been frozen at the 2008
level and no increase is in the foreseeable future. I have been clear
that I would be supportive of legislation to reduce the salaries of
members of the Senate and House of Representatives.
Myth: Senate Bill 5 will
cut teachers salaries in half or lower teachers’ salaries to $17,300.
Fact:
This is simply not true. There is nothing in the bill that reduces any
salaries. Teachers, firefighters, police officers and other public
workers will still be able to negotiate on wages, benefits, and the
terms and conditions of the workplace.
Senate Bill 5 will not be a sole fix of Ohio’s $8 billion projected
budget shortfall, as some have suggested we are trying to do. This bill
will, however, level the playing field during future negotiations.
and will give local governments much needed flexibility when addressing
future budgets crunches. This bill will follow the guidance of both FDR
and Ronald Reagan by prohibiting strikes by public servants and
allowing for the consistent delivery of service to the taxpayers. The
bill will require that public employees pay a reasonable portion of
their healthcare premium. This bill will increase transparency and
allow the public to know exactly what negotiating parties are
demanding. This bill will bring Ohio one step closer to having a
competitive edge over the rest of the states, territories, and
countries we compete with for jobs.
At the end of the day, I believe Senate Bill 5 will have a positive
impact on the State of Ohio and that is why I voted in favor of it. I
understand that this bill will affect many public servants financially,
including many of my closest family and friends, so I do not hold any
zealous pride in my vote. However, I believe this vote was the right
thing to do for the State of Ohio and the constituents of the 12th
Senate District.
The Ohio Senate
Statehouse
Rm. 138, Ground floor
Columbus, OH 43215
614.466.7584
Committees:
Agriculture
Finance
Insurance, Commerce & Labor
Judiciary—Civil Justice
Rules and Reference
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