By Jane Hague and Dustin Frederick
Over the last several weeks the events in Wisconsin have seized the nation’s attention. Newly elected Gov. Scott Walker pushed aggressive legislation to plug the state’s massive $3.5 billion budget gap, cutting state worker pay and removing most of their collective bargaining rights. State Senate Democrats fled to Illinois to prevent Republicans from obtaining a quorum.
The combination of public officials “on the lam,” massive demonstrations, and petty prank calls has turned Wisconsin into a national media circus.
Unlike the Midwest, we in King County have made tremendous progress on financial stability without the divisive rhetoric. Democrats, Republicans, labor and management have successfully worked together.
Last summer, county government faced a $60 million budget deficit. The executive, council and unions were able to reexamine labor policies, update them to address our current economic reality and create a fiscally responsible budget that saved jobs and preserved vital services.
Through respectful discussion, objective economic analysis and meaningful compromise, the county and the unions agreed to new provisions that saved more than $23 million.
Even before the current economic downturn, King County was faced with a “structural gap” between expected revenue and expenses.
This “gap” means that King County’s cost of doing business continues to exceed its revenue and since labor costs make up 70 percent of the general fund budget, it meant that labor cooperation needed to be part of any solution.
Last July the council completed the first comprehensive look at labor policies since 1994. This review began under Councilmember Hague’s leadership as chair of Committee of the Whole (COW). Among the new adopted policies was a bipartisan amendment that limited cost-of-living-adjustments (COLA’s) based on current economic conditions. Another approved amendment ensures that county employees continue to pay towards their health care costs, similar to private sector workers.
Using these new policies, Executive Dow Constantine was able to negotiate new, cost-effective contracts. Ninety percent of represented employees voluntarily gave up their cost of living adjustments (COLA’s). This is unprecedented. Ultimately, $23.5 million was saved across all county agencies for 2011.
The money saved allowed the county to continue offering endangered Metro services and maintain public safety. The council and executive staff also took voluntary spending cuts.
In light of the Wisconsin debacle, it is easy to see how this entire process could have easily devolved into a partisan grudge match. Instead it has resulted in a healthy conversation about how to make King County fiscally sustainable.
The County Council is now officially nonpartisan, but partisan viewpoints and values must still be acknowledged and blended in order to reach durable agreements. The fact that the new labor policies were adopted unanimously and endorsed by Labor speaks volumes.
We are not Wisconsin. Executive Constantine has eschewed partisan rhetoric and focused on trimming long-term costs. Defying the public stereotype, labor leaders in King County have also been helpful and creative in working towards savings along with many councilmembers – from partisan backgrounds – who have consistently advocated for spending discipline.
We can’t get carried away patting ourselves on the back though. The council, the executive and labor still have a lot of work to do. King County’s financial woes won’t go away overnight.
Even with the success of 2011, the county will still face a $20 million budget deficit in 2012.
Since revenue uncertainty is unlikely to change in the near future, the only viable solution will come from finding ways to deliver services more effectively. It is not easy. The county has more than 13,400 employees, 121 separate bargaining units covered by 73 labor contracts, and dozens of different agencies. Changing such an organization is challenging, but it is necessary and doable.
Reaching financial stability will be well worth the effort. Instead of a downward spiral of employee lay-offs, recriminations between labor and management, and uncertain service delivery, we can continue to draw on our positive relationships and work towards improving services and efficiency for the benefit of all stakeholders.
We are convinced this can be accomplished through collaboration and partnerships within the framework of collective bargaining.
Workers and taxpayers deserve nothing less.
Jane Hague serves as vice chair of the Metropolitan King County Council, representing District 6. Dustin Frederick is Business Manager for the Public Safety Employees Union.
