Remember the violent demonstrations over Wisconsin Gov. Scott Walker doing away with collective bargaining for teachers unions? The results are in. Some school districts went from a $400,000 deficit to a $1.5 million surplus as a result. Why?
It seems that the insurance company that provided all the benefits to the teachers was an insurance company owned and operated by the teachers union. Since the outfit was guaranteed to get the insurance business from the teachers, and the state had to pay for it, the insurance company was increasing annual costs every year to become the most expensive insurance company in the state. The company was donating millions of dollars to its favorite Democrat politicians. Nice racket, and this is the racket that’s going on in every state that allows collective bargaining. No wonder the states are taking it away.
Now the state of Wisconsin is free to put the insurance contract out for bids and they have saved so much money it has turned deficits into surplus amounts. As a result, none of the teachers had to be laid off, everyone got a raise, etc., and the taxpayers of Wisconsin don’t have to pay more taxes to fund the union’s political ambitions.