Democracy

Fire Fighters Turn off the Spigot

Union.jpgRemember when the fight broke out in Wisconsin over the right to collectively bargain and President Obama and a phalanx of national Democratic leaders spread out across the country fighting for the rights of American workers?

Right, we don't remember that either.

As unions battled for their very existence, the thunderous silence from Washington, D.C. did not go unnoticed by working families fighting for their livelihoods or by powerful political players. At least one organization has decided to hold a few of their former friends accountable.

The International Association of Fire Fighters, announced yesterday it would no longer be giving money to federal candidates. Rather, the 300,000-member union said it would put its energy and resources into the fight at the state level over collective bargaining.

Could Michigan-style "Martial Law" Be On Its Way to Wisconsin?

Rumors have been circulating about a little-known initiative to subject Wisconsin local governments to "stress tests" and other new constraints. Many believe the proposal resembles the "martial law" bill that was recently passed in Michigan, which allows the state government to dissolve local governments in a "fiscal emergency," and worry that Wisconsin Governor Scott Walker or his friends in the legislature could be cooking up a similar plan.

Governor Walker Spins New Jobs Out of Whole Cloth

Wisconsin Governor Scott Walker (AP photo by Morry Gash)Wisconsin Governor Scott Walker has pledged to create 250,000 new jobs in Wisconsin. He has an interesting way of going about it. Dan Bice of the Milwaukee Journal Sentinel reported that Walker visited Curt Manufacturing near Eau Claire, Wisconsin last week to award the state manufacturing plant a $625,000 transportation grant and congratulate himself for creating 125 extra jobs as a result. "This project directly creates 125 new jobs and indirectly creates 129 jobs, resulting in $12.6 million in annual wages right here in Wisconsin," Walker said in a news release. "By providing these funds, we are bringing quality jobs to Wisconsin while improving road access to Curt Manufacturing's expanded facility." But credit for the same 125 jobs was already claimed back in December by then-Governor Jim Doyle when the Department of Commerce announced the administration was giving the same company $400,000 in tax credits and $11 million in tax-free bonds under a 2009 stimulus program. Doyle said the extra money would "create 125 extra jobs and result in $12.8 million investment to the community." Could the firm be creating 250 new jobs? Er, no says a company spokesman. Curt has committed to adding 125 positions by 2014. So Walker simply ladled out an extra $625,000 for the same 125 jobs. That amounts to a whopping $96,000 in taxpayer support per job. Let's hope they pay more than minimum wage.

No

Action Item: Draft Executive Order Would Promote Election Disclosure, Call the President!

The White House is circulating a draft Executive Order requiring disclosure of contributions to "third party" or "independent" expenditure groups by corporations receiving government contracts. During the 2010 elections, much of the unlimited election spending made possible by the U.S. Supreme Court's Citizens United decision was kept secret by groups taking advantage of the 501(c) section of the tax code. The President's proposed order would lift the veil on secret spending in time for the 2012 elections.

Nebraska Bill Would Increase Election Spending Accountability

NebraskaThe Nebraska legislature gave unanimous first-round approval in late March to LB606, a measure  to close a loophole in state campaign funding regulation which currently allows organizations like Americans for Prosperity (AFP) to spend unlimited funds to influence state politics without filing finance reports with the state Accountability and Disclosure Commission, as long as they can claim that they don’t specifically advocate voting for or against a candidate. AFP “spent tens of thousands of dollars in the 2010 Nebraska elections,” but doesn't file finance reports with the state, arguing that its efforts represented "educational’ efforts” -- everything but specifically advocating voting one way or another. AFP also claimed the exemption because they’re registered as a corporation in Nebraska, not a campaign committee or political action group. The proposal by Sen. Bill Avery of Lincoln, NE “would require AFP and any similar outfits to report their campaign spending to the Nebraska Secretary of State so that everyone would be able to know who’s spending money to influence the election -- regardless of whether they urge specific support or opposition for a candidate.”

No

Walker Says Wisconsin's Broke, But the Facts Say Otherwise

The Institute for One Wisconsin, a non-partisan organization, released a report (pdf) last week that says that "despite claims from Governor Scott Walker, Wisconsin is not 'broke.'" Their research found that the state's Gross Domestic Product (GDP) has risen in the past twenty years, and though the state is overall quite wealthy, the bulk of that wealth has shifted to the richest people of the state, while Wisconsin's tax structure "is built around the middle class."

How does this shift in wealth make the state look as though it was broke? One Wisconsin stated that "this discrepancy has led to tax revenues failing to keep pace with Wisconsin's GDP, an over tax-burdened middle class, and budget shortfalls, instead of surpluses." While tax cuts for the wealthiest of the country and state have been extended, the tax burden has now been handed over to the middle class of the state, creating a disparity in people's falling incomes and rising taxes in the middle class.

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