FAQ for Ohio Issue 2 (November, 2011 election)

8/4/2019 FAQ for Ohio Issue 2 (November, 2011 election)

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What is State Issue 2? State Issue 2 is a referendum on the November 8th ballot asking

Ohioans to approve a set of fair and reasonable reforms to help our

local communities get their growing government labor costs under

control.

What is the problem you’re trying to

address with these reforms?

Ohio’s state budget faced an unprecedented $8 billion shortfall this

year - the largest in state history - and many communities are facing

similar financial challenges. Elected officials across the state have

identified rising labor costs as a common area of concern.

What do labor costs have to do with

balancing local budgets?

Our local governments are now spending as much as 80 percent of

their budgets on labor - primarily pay and benefits for governmentemployees. Over the past three decades, government employee

labor unions have created contracts that contain an expensive array

of fringe benefits that taxpayers can no longer afford, such as

automatic pay raises with no regard for performance, generous

health and retirement packages at little-to-no employee cost and

excessive paid leave policies. These benefits are funded by

taxpayers, who seldom get similar treatment in the private sector.

Are you saying government workers

are to blame for our budget

problems?

Absolutely not. Ohio's hard-working government employees are not

being blamed for anything. Simply put, taxpayers got stuck with

government labor contracts they can’t afford because too manypoliticians failed to say no. More importantly, Ohio has lost hundreds

of thousands of jobs in the past decade, resulting in dramatically

lower tax revenues. State and local governments are struggling to

fund even the most basic services, while paying for the ever-

increasing demands of their workforces. Ohio had the seventh-

highest state and local tax burden in the nation last year, largely

because the cost of government exceeds the ability of taxpayers to

fund it. It’s worth noting that even under the new reforms of Senate

Bill 5, our teachers, fire fighters, police officers and other government

employees will still enjoy better pay and benefits on average than

private sector taxpayers.

How many government employees

would be impacted by these reforms?

The reasonable reforms of State Issue 2 apply to approximately

359,500 government employees - or 6.5% of the state’s 5.5 million

workers.1 That’s hardly the massive “attack on the middle class”

opponents would have you believe. It’s actually Ohio’s middle class

that Issue 2 is designed to help. They’re tired of constantly being hit

with higher property taxes to fund the ever-growing cost of our local

schools and governments.

State Issue 2: Frequently Asked Questions

Paid for by Building a Better Ohio, J. Matthew Yuskewich, Treasurer, 4679 Winterset Drive, Columbus, OH 43220

www.BetterOhio.org



Are you suggesting that we cut pay

and benefits for government

employees?

No. Issue 2 only asks that we reward and retain government

employees based, in part, on the quality of their work and that they

pay a modest, fair share of their health care coverage (at least 15%)

and pension contribution (just 10%). These are reasonable reforms.

If these reforms impact only 6.5% of

Ohio’s workforce, will they generate

any savings?

Yes. The Ohio Department of Administrative Services found that just

three of the many reforms included in State Issue 2 would save

taxpayers at least $191 million annually at the state level and millions

of dollars more at the local level.

Why do opponents keep saying this

is an attack on the middle class?

Opponents like to use class warfare rhetoric to incite an emotional

response. The Columbus Dispatch said it best: “Not only are thepublic-sector workers affected by [Issue 2] not representative of the

majority of Ohio’s middle class, but the comfortable wages,

automatic raises, benefits, pensions, job protections, sick-day

payouts and negotiating power enjoyed by many of these public-

sector workers comes at the expense of the vast majority of Ohio’s

middle-class taxpayers. Most of these taxpayers have nothing

remotely like these benefits nor the economic security that the public

sector takes for granted and regards as a right.” 2

Does State Issue 2 affect employee

wages?

State Issue 2 does not mandate salary levels. It only ends the

practice of awarding automatic pay raises based only on anemployee's length of service. Employees would earn pay raises

based, in part, on the quality of their work. Issue 2 also eliminates

“step” increases.

What are “step” increases? Government union contracts often demand that public workers get

three types of pay raises: (1) negotiated salary increases, (2) “step”

increases - or automatic raises based on a schedule - and (3)

bonuses for "longevity" after five years of service. Step increases

and longevity bonuses are in addition to any other negotiated raise or

cost of living adjustment. These salary hikes are not given for good

work performance, but simply for staying in a job for a particular

amount of time. In fact, approximately 46% of state government

workers received a longevity pay increase in the last two-year

operating budget – in addition to annual cost of living increases. The

median state government worker adds $76,730 to his or her lifetime

pay only through longevity increases, creating a substantial boost to

his or her pension. 3 A survey conducted for the Thomas B. Fordham

Institute in January found that 70% of Ohio school superintendents

support eliminating automatic step increases in teacher salaries. 4



www.BetterOhio.org



Does Issue 2 affect government

employee health care benefits?

Issue 2 asks government employees pay at least 15 percent of the

cost of their health insurance coverage, with the remaining portion to

be publicly funded by taxpayers. Ohioans support this reform by a

27-point margin in a recent independent statewide survey. 5 That's

less than half of the average cost private sector workers are currently

paying. In fact, local government employees pay only 8.3 percent on

average toward a health care premium 6, and some pay nothing at

all. That’s unfair and unsustainable, especially in this economy.

Issue 2 also requires that government health care benefits apply

equally to all government employees, whether they work in

management or non-management positions. No special treatment.


employee pensions?

Issue 2 only asks government employees to pay the personal (or

employee) share of their generous pension contribution, ending the

practice of pension pick-ups. Ohioans support this reform by a 25-

point margin in a recent independent statewide survey. 7

What are pension pick-ups and why

would they be eliminated?

Public employees are required to pay 10 percent of their salary

toward one of Ohio’s five public pension plans, but union contracts

often demand that taxpayers “pick up” (or pay) the employee portion

in addition to the 14 percent employer contribution. This arrangement

allows many government workers to get a very generous retirement

package at little to no personal cost. A recent Columbus Dispatch

analysis found that eliminating pension “pick-ups” would save

Columbus taxpayers $41.2 million annually. 8 Toledo’s deputy mayor

told a legislative committee that his city will eliminate its residential

street-repaving program in 2011 just to pay for required employee

pension pick-ups. 9

How do public employee pensions

compare to the private sector?

USA Today reports: “Retired government workers are twice as likely

to get a pension as their counterparts in the private sector, and the

typical benefit is far more generous.” 10 Ohio has the nation’s fourth

highest public pension burden, and Cincinnati ranks near the top of

cities with the largest pension deficits – at more than $1 billion. 11 The

Cincinnati Enquirer reports, “Many top city leaders attribute the deep

financial hole to Cincinnati being too generous for too long with its

80-year-old retirement plan... [T]hey point to policies that allow some

workers to retire with pensions of up to 90 percent of their three

highest years’ salary, guaranteed 3 percent annual increases, lifetime

health coverage at negligible cost and other benefits far beyond

those found in most private and public retirement plans.” 12



www.BetterOhio.org




employee leave policies?

Yes. Issue 2 clarifies that paid time off for government employees

with less than 20 years of service is limited to six weeks of paid

vacation, 12 paid holidays, two weeks of paid sick leave and three

paid personal days per year. This stops government union bosses

from creating contracts that use excessive leave time as another

form of compensation.

Does Issue 2 affect the way

government employees are

compensated?

Issue 2 does not set salary levels, but it does ensure that job

performance will be considered in compensation decisions, such as

pay raises. This is how employees are compensated in the private

sector, and it’s essential to the quality and efficiency of governmentservice that we reward our best and brightest workers, while ending

the practice of handing out automatic pay increases based only on a

set schedule or on length of service. This is especially a problem in

our schools, where too many union contracts keep and reward bad

teachers simply because they have “tenure.” Ohioans support this

reform by a 21-point margin in a recent statewide survey.13

Does a merit pay system have the

potential for bias or discrimination?

Government employees impacted by Issue 2 are protected by civil

rights and civil service laws. These laws are designed to ensure that

employment decisions are free from bias and discrimination based

on an employee’s age, race, religion or political affiliation. Theseprotections have always applied to government employees, and they

provide a full recourse through various agencies and courts

responsible for reviewing employment discrimination claims.

How does Issue 2 affect government

employees who don’t want to join a

union?

Issue 2 clearly establishes that government employees cannot be

forced to join a union. Under the current system, an employee can

be required to pay the union a “fair share” fee for representation,

even if the employee refuses union membership. Issue 2 puts an

end to that practice. It also prohibits unions from requiring public

employers to automatically withdraw payroll funds (tax dollars) for

deposit into a union political action committee, unless an employee

gives written authorization. Finally, if employees are not happy with

their union representation, the bill allows 30 percent of its members

to petition for a decertification vote, which would require a majority.

How does Issue 2 affect the ability of

certain public safety workers to get

safety equipment?

Public safety unions often include equipment demands in their

contract negotiations, and Issue 2 allows that practice to continue. In

fact, state legislators took extra steps to clarify in the bill that safety

gear is included under “terms and conditions” of employment.



www.BetterOhio.org



Does Issue 2 eliminate collective

bargaining for government

employees?

No. In fact, the new law states the same as the old law: "Public

employees have the right to… bargain collectively with their public

employers to determine wages, hours, terms and conditions of

employment."14 The only difference is that Issue 2 helps to better

define those "terms and conditions.” Since the old law was passed

nearly 30 years ago, government employee unions have successfully

expanded the definition to include a laundry list of costly perks and

fringe benefits that taxpayers can no longer afford. Issue 2 simply

restores the balance between the needs of our government

employees and the ability of taxpayers to effectively manage their

schools and services.

What does Issue 2 mean for

teachers?

First, it’s important to note that the teachers’ unions have spread an

enormous amount of misinformation about Issue 2. They get their

power and influence from the current system, so they have an

interest in protecting the status quo. Their claims that teacher pay

would be cut in half or benefits would be lost under the reforms of

Issue 2 are absolutely false. Issue 2 only requires school boards to

work with educators on developing teacher performance standards, a

goal the current and previous presidential administrations set out in

their respective education policies. Salary levels would still be

determined through contract negotiations, but districts would not be

required to provide automatic “step” increases (or scheduled pay

raises with no regard for performance standards). Teachers will

continue to receive generous health care and retirement benefits, but

they would be asked - like all government employees - to pay at least

15 percent of their health insurance premium and to pay the required

10 percent employee share of their pension contribution. Finally, the

reforms of Issue 2 are not retroactive, meaning current teacher

contracts would continue until they expire. These reforms are very

fair, and they are supported by public school educators across Ohio.

How are government employee

contract disputes resolved under

Issue 2?

In most every situation, Issue 2 requires contract disputes to be

resolved by people directly accountable to the voters for managing

tax dollars, rather than unelected, unaccountable arbitrators. In the

event of an impasse, taxpayers can review the proposals from both

sides and participate in a public hearing. If the elected officials

choose the most expensive contract offer, taxpayers can take it to

the ballot for approval.



www.BetterOhio.org





www.BetterOhio.org

1. “False claim,” editorial, The Columbus Dispatch, 2/23/11

2. Ibid.

3. “The Grand Bargain is Still Dead,” The Buckeye Institute for Public Policy Solutions, December 2010

4. Senate Committee Testimony, Terry Ryan, Vice President for Ohio Programs and Policy, The Thomas B.

Fordham Institute, 2/15/11

5. The Quinnipiac University Poll, July 12 - 18, 2011, 1,659 registered voters, MOE +/- 2.4 percentage points

6. Politifact.com, The Plain Dealer, 2/21/11


8. “Taxpayer benefit?” Rob Messinger, Doug Caruso & Jennifer Smith Richards, The Columbus Dispatch, 3/6/11

9. Senate Committee Testimony, Stephen Herwat, Deputy Mayor, City of Toledo, 2/15/11

10.“Pension gap devides public and private workers,” Dennis Cauchon, USA Today, 2/21/07

11.“City must weigh pension needs against taxpayers,” Barry Hortsman, Cincinnati Enquirer, 1/24/11

12. Ibid.


14. Ohio Revised Code, Section 4117.03(A)(4)

FAQ for Ohio Issue 2 (November, 2011 election)

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