Transcript Justice for All - UPR-RP

The Urgency
Of Change
Public Division Leadership Board
January 23-24, 2009
Barack Obama:
“I want to make government
cool again.”
40-Year War Against Government
“A government big
enough to give you
everything you
want is big enough
to take everything
you have.”
— Barry Goldwater
40-Year War Against Government
“The nine most
terrifying words in the
English language are:
‘I’m from the
government and I’m
here to help.’”
— Ronald Reagan
40-Year War Against Government
“The era of big
government is
over.”
— Bill Clinton
40-Year War Against Government
“They want the
federal government
controlling Social
Security like it's
some kind of federal
program.”
— George W. Bush
New Attacks on State, Local Government
“Conservatives need
to put as much focus
and attention on
reducing state and
local spending over
the next years as
they do on the federal
budget.”
— Grover Norquist,
right wing strategist
States Are In Trouble
States with Funding Shortfalls (in yellow)
Revenue Shortfalls are Huge
• For FY 2009 (the current fiscal year)
– 45 states with shortfalls
– $91 billion
– $1 short for every $8 needed
• For FY 2010
– Even more states with shortfalls
– Likely $145 billion or more
Property Tax Declines Hit Local Government
Projected Peak-to-Trough House Price Declines
> 30%
20 to 30%
10 to 20%
0 to 10%
No decline
Sources: Fiserv
Lending Solutions,
Moody's Economy.com,
OFHEO
New Attacks on State, Local Government
Public Services
In the Crosshairs
“Spending limits will do
to government what
Japan did to the auto
industry.”
— Grover Norquist
How Big? How long?
State Revenue Shortfalls by Year ($ in billions)
Last Time
This Time
$0
??
($50)
($40)
($45)
($75)
($80)
($100)
($91)
($150)
($145)
Estimate
($180)
($200)
2002
2003
2004
2005
2009
2010
2011
2012
40-Year War on Government
Has Undercut Public Services
• Warped tax system, unsustainable
budgets for government
• Damaged image of public employees
• Deregulation lets Wall Street, banks and
investment houses run wild
• Layoffs and service cuts
The biggest economic crisis
since the Great Depression
2 Million Jobs Lost in
2008; 1 in 7 without a job
$2 Trillion in
Pension Wealth
Wiped Out in
Financial Meltdown
$15 trillion in at risk mortgages, 1 in 10
mortgages foreclosed or delinquent
“Things are going to get
worse before they get better.”
What Does it Mean
for Us?
Today, We Look a Lot Like
The UAW Once Did
• Growing
• Employer-paid healthcare
• Employer-paid pensions
• Job security
• Generally good wages
Today
1950s-1960s
Like SEIU today, the UAW
was innovative, visionary
and led the labor movement
Flint Sit-down Strike – 1936-37
Like SEIU today, the UAW
was a progressive leader
in America
Walter Reuther and Cesar Chavez
Walter Reuther and Dr. King
But Then…
The UAW stopped
challenging the Big 3 and
became a defender of the
status quo
As Reuther predicted, private
healthcare and pensions were not
sustainable and forced the UAW to
take positions at odds with the
community and the common good
As a Result…
The public today sees auto workers
as just another special interest
So…
Widespread opposition to
the auto bailout even
though it puts millions of
good jobs at risk
The UAW: A Cautionary Tale
• Ignored quality for too
long
• Faced lower standards
in the non-union South
• Eventually could not
sustain pay and
benefits much higher
than the rest of the
workforce
• Took public positions
that lost public support
& moral high-ground
UAW Members
1.5 million
400,000*
1969
2008
* Even though total auto industry
jobs grew during this period
Could It Happen to Us?
How would the leaders of the
UAW have answered that
question in their heyday?
Making the Connection:
Auto Industry = Public Services
“I would analogize it to what the
government is doing with the
auto companies. Congress said,
we’ll give you the money but you have to show us
a plan for sustainability. Now government is in the
same position of the auto companies, but they
haven’t come up with any plan for sustainability.”
— Robert Bixby, Director, The Concord Coalition, 1/7/09
The Right is
Gearing Up a
New Wave
Their Aim
is Starting
to Point
Directly At Us
They Have a
Powerful
Message
“Every person in
every town in
America will know
the reason their
library is closing
early is that public
employees have
defined benefit
pensions.”
Grover Norquist
Even Our “Friends”
Are Lowering Standards
Union Sues Gregoire for Not Funding Contract
Paterson Offers Draconian Budget Cuts
We Know What’s Coming
• Layoffs
• More pressure to privatize
• More pressure to cut wages and
benefits
• More demand for services while
the staff to provide them shrinks
• Greater reliance on technology vs.
people
How do we get out
of this mess?
Short-Term Thinking Won’t Work
We can no longer limit our thinking to the
next contract or the next budget. In this
environment, having a contract is a legal
position, not a guarantee
We can’t wait – we need to merge shortand long-term strategies right now
Change is Coming
• Government more as “arranger” than
“provider” of public services
• National health and new medical
technology will have huge impact on
public budgets and health programs
Change is Coming
• More government by “network” –
Wisconsin/Minnesota may share
prison food and salt purchasing;
merge call centers & licensing
• Prison inmate releases and less
prison construction will mean more
community-based programs
Change is Coming
• More technology vs. people
delivering services (websites, kiosks)
• Increased contracting out
• Increased globalization
Can We Meet the Challenge
with Real Change of Our Own?
Quality is Job 1
When reality and hype don’t match up
people see right through it
Can We Lead the Change?
• Every local with a quality committee
that constantly works to improve
services?
• Every local with a “Blow the Whistle
on Waste and Fraud” operation?
Can We Lead the Change?
• Every local insisting on more energy
efficiency and environmental
responsibility?
• Demanding that all budgets be
transparent and online?
• Demanding that all tax breaks or cuts
show who benefits, who pays?
Could We Imagine a
“Make
Government
Cool Act”
Introduced in all of our states, cities,
counties, and school districts – all on the
same day across America so we take the
lead on quality, efficiency, and
innovation?
Other BIG ideas?
Adjusting to Our New Reality
The Urgency
Of Change
Public Division Leadership Board
January 23-24, 2009