Budget Battles

Massachusetts

Good and bad news came out of the legislative session here. The good news is that AFSCME and a coalition of other unions successfully pressured the legislature to override acting Gov. Jane Swift's (R) veto of a $1.2 billion revenue package that helped fill the state's estimated $2.3 billion budget gap for fiscal year 2003. The extra funding saves thousands of state workers' jobs and prevents destructive cuts for cities, counties and local schools. Legislators also refused to increase the percentage of health insurance costs that employees must shoulder.

The bad news: Higher education took a tremendous hit. Swift vetoed funding for 32 collective bargaining agreements covering some 4,500 AFSCME members and other employees. The workers are mobilizing across the state to persuade the legislature to override the veto. In early September, thousands left their jobs for 10 a.m. protest coffee breaks. Later in the month, a statewide lunchtime brought out even more workers. These growing demonstrations of solidarity prove how serious union members are about having their agreements honored.

Chicago

The Windy City collected more than $1 million during the first week of its September parking-ticket amnesty program. Drivers with parking tickets issued before Jan. 1, 2000, were permitted to pay the original fines without added penalties. Facing a $115 million budget deficit, the city hoped to raise $4 to $10 million from this effort.

New Jersey

Gov. James McGreevey (D) submitted legislation closing corporate tax loopholes, a move projected to increase state revenues by $1 billion a year. When the Senate adjourned without voting on the increase, McGreevey called them back into session to act on the measure. "As of today, there is tax equity," he said in early July, after passage. "For too long, certain major corporations were only paying $200 per year — less than middle-class New Jersey families. Those families in the past 20 years have paid more in income taxes and sales taxes while, in actual dollars, businesses have been paying less. That is unacceptable."

McGreevey met with the heads of New Jersey's AFSCME councils in late September to discuss the budget and other issues affecting the state's public workers.