Needed reforms are at stake in Ohio referendum

Published November 6, 2011 4:00am ET



Big Labor is at it again. They’ve made Ohio the latest front in their battle against responsible governance. In response to Senate Bill 5 — a budget measure passed by the Ohio General Assembly and signed by Gov. John Kasich — union allies orchestrated a November ballot referendum in attempt to repeal the legislation.

In other words, special interest-funded union allies are pushing a “no” vote on Ballot Issue 2 to drive up the state’s debt and force teacher layoffs — all to protect the largesse of union contracts.

This makes for good liberal politics, but repealing Senate Bill 5 is disastrous for families, for schools, and for Ohio. While Big Labor takes aim at fiscal responsibility, Ohioans should commend Kasich for his prudent leadership.

Opponents say the policies are heartless or ideologically motivated. Hardly. In fact, if you look past this bluster, Ohio is on track to accomplish something big: cutting the deficit without tax increases, major layoffs, or deep cuts to school services.

The reforms operate under a simple principle: taxpayers should not have to pay more of their wages to fund added benefits of public sector employees. Likewise, Senate Bill 5 affirms the notion that school boards should not have to cut jobs to save the generous health plans of state employees.

The budget plan avoids two things: tax increases in a recession, and layoffs in a time of high unemployment. It does this by asking state workers to contribute to their pensions and health care in the same way private sector employees do, and it liberates school districts and municipalities to find competitive insurance plans that cut costs.

These are common-sense propositions, but special interests would have you believe otherwise. They will gin up fear by using the same false scare tactics we’ve seen before.

But lucky for Ohioans, they’re not the first state to attempt responsible budgeting. By looking to another Midwestern state, they can put these fears to rest.

Consider Wisconsin. In early 2011, the state implemented similar budget proposals to balance the budget and get its economy growing. There too, Big Labor stoked voters’ fears and poured millions of dollars into recall elections designed to bully Republican lawmakers.

But then savings started rolling in. The budget gap began to close. And schools were empowered to better serve students and parents. When voters went to the polls in August for a recall election, the Republicans maintained their legislative majority. Voters gave the reforms their stamp of approval.

In times of tight budgets, it’s more important than ever that states learn from each other. What succeeds in one state can be replicated by another. This is, after all, one of the great strengths of the American system. One state’s successes can be modeled with knowledge of the likely outcomes.

With that in mind, Ohio should look at the facts in Wisconsin. One example: the Oskosh Area School District. In that district alone, total savings from the state reforms come to more than $5 million.

How are those savings achieved? They come from asking teachers to contribute a modest amount to their health care and pensions. The savings come from reducing teacher sick days from 90 (yes, 90!) to 10, and they come from district administrators’ ability to find new competitive health-insurance plans.

In Merrill, Wis., the school board was able to save 12 teachers from layoff status. They also avoided closing schools and slashing elective classes. With the newfound ability to renegotiate with the local union on contracts, the school board saved schools, saved teachers, and saved classes.

In Madison, critics said the proposal would destroy public education. Instead, the district was able to a start a new kindergarten program, open a new charter school, avoid teacher layoffs, continue offering free health insurance, and give raises. Responsible budgeting can produce positive results. Statewide, Wisconsin will save more than $430 million.

Progress, of course, does not come without controversy. But in Ohio, the controversy is founded in fear — not the facts. Difficult times dictated the need for a new budget and the new state employment policies. But smart stewardship turned a challenge into an opportunity to strengthen the state. Ohio can learn from other states. And America can learn from Ohio.

To voters in the Buckeye State: those are the facts. Take note before Big Labor covers them up. Vote “yes” on Issue 2. Vote “yes” for a brighter future for your children.

Reince Priebus is chairman of the Republican National Committee.