In a passage reflecting House Democratic spin on the supposed economic benefits of the stimulus package, today’s Washington Post reports that the bill includes aid “that many economists agree will enter the economic bloodstream quickly and trim further layoffs by state governments.” But from the vantage point of New York State, where Gov. Paterson is not proposing significant layoffs, the increased federal funding will serve mainly to support increases in already generous pay and benefits for unionized public-sector employees.
For example, roughly $4 billion in stimulus aid will flow over the next two years to New York’s K-12 public schools, where teachers are receiving average salary hikes of 4.2% in their most recent contracts, on top of gold-plated benefit packages whose costs are more rapidly escalating. The new federal money will simply relieve any pressure teachers’ unions might otherwise have felt to renegotiate or reopen their contracts. And when the stimulus money runs out in two years, the hole for taxpayers will be that much deeper.
In the short term, this will certainly “stimulate” public-sector unions. But it won’t do a thing for the economy.
About the Author
You may also like
Pols Craft More Handouts for Sinking Construction Unions
New York’s construction unions, facing a decades-long decline, are employing a time-honored tactic: getting state government to stop people from competing with them. Read More
Union Rallies Long Island Pols Against NYC Kids
New York’s statewide teachers union has been cashing in political chits as it seeks to block new charter schools from opening in New York City, asking the senators and assemblymembers Read More
Do NY families have school choice?
Organizations across New York and the country last week observed to raise awareness of the educational pathways that exist outside of residentially-assigned public school systems. But what does Read More
Utility board turns into union tool
The idea that the PSC would artificially drive electricity costs higher to benefit a political constituency represents a new low. Read More
Another Reason to Lift the Charter Cap
A staff shortage in upstate hospitals prompted , where hospital officials and state lawmakers asked that more funding to train medical professionals be included in January’s state bu Read More
New Docs Raise Big Questions About NY’s Megafab Mega-Deal
The Hochul Administration published a pair of documents concerning the Micron Megafab deal that raise more questions than they answer. Read More
Nation’s Report Card Paints Bleak Picture for New York
Results are in for the National Assessment of Educational Progress, the nation’s report card. They paint a bleak picture for New York. Read More
City union scandal isn’t NY’s first
One of New York City’s largest public-sector unions has been effectively taken over by its national parent after an audit revealed extensive financial mismanagement. It’s the latest example of misconduct made possible under New York’s public-sector collective bargaining rules that force the government to collect hundreds of millions of dollars annually without any safeguards on how the funds are spent. Read More
Enjoying our work? Sign up for email alerts on our latest news and research.