Grand Rapids, MI – 150 people protested here, March 15, against Michigan Governor Rick Snyder’s plans to impose extreme budget cuts to health clinics, schools and other social services. The crowd chanted, “It’s not fair!” “Chop from the top!” and “They say cut back. We say fight back!” outside a health clinic serving mainly women and children on Cherry Street in Grand Rapids.

Concerned parents, union members and their children joined March 15 protests in many small cities and towns across the state. For many it was their first protest as they prepared for the big rally in the Michigan State Capitol in Lansing set for March 16. Thousands prepared to protest and possibly occupy the Capitol Building to stop harmful legislation.

The legislation being pushed by Governor Rick Snyder is deemed worse than the anti-union and anti-democratic laws imposed by Wisconsin’s Governor Walker. Michiganders are surprised by the sharp attacks from Snyder, who presented himself as the ‘nerd’ candidate, a sensible and moderate Republican. Snyder defeated two Tea Party candidates to win the Republican primary, but is now carrying forward the Wall Street agenda of imposing cuts in services and breaking unions. Everyone knows the money is in the banks and the rich people are hording it.

The Parent-Teacher Association circulated a notice explaining that Snyder is cutting per pupil funding by $470, while forcing local school districts to pick up 3.8% of pension responsibilities and as much as 20% of health insurance premiums. The Grand Rapids Public Schools Communication Director, John Helmholdt, sent an emergency alert explaining, “In addition to the per-pupil funding cut (a cost of $5.6 million to GRPS), the district is facing an additional $6 million-plus in cuts to the ‘categorical’ funds. Specifically, the Governor's budget cuts or eliminates funding for small class sizes, declining enrollment, bilingual services, special education services (expense reimbursement), school health centers and GRAPCEP Engineering and Biomedical School.”

The actual loss in funding from the state will be closer to $700 per student. This comes at a time when Grand Rapids Public Schools are announcing a successful turnaround in performance, gaining high marks in student achievement. The attacks from the state capitol are targeting urban school districts with large populations of African-American, Mexican-American and working class students.

The rally ended with a call to protest in Lansing on March 16 with unions, students and community organizations. Michigan’s own Michael Moore is organizing buses from all over the state and promising to cheer working people on as they take matters into their own hands at the State Capitol.

#GrandRapidsMI #PoorPeoplesMovements #BudgetCuts #BudgetCrisis #GovernorRickSnyder

Welfare Rights Committee Hails Supreme Court Ruling on UnallotmentDemands Legislature Take Action for Poor and Working People

Today, the Minnesota Supreme Court made the right decision. They took away Governor Pawlenty’s “royal powers” over the state budget.

The Welfare Rights Committee’s Linden Gawboy stated, “Pawlenty thought he was a king. Now he is just pathetic.”

Last year, Governor Pawlenty played dictator with his illegal unallotments and other cuts. He put his personal whims into action and slashed away at some basic safety net programs for the poorest of the poor. He eliminated General Assistance Medical Care, food assistance for the ill and supplemental aid for the disabled. He increased taxes for renters and many cut from many other programs.

The members of the Welfare Rights Committee have felt the effects of all of his cuts to the poor. We have watched as ourselves, our families and friends are forced to scramble for basic needs.

So we hail today’s State Supreme Court decision. After witnessing months of suffering, it is long overdue.

Deb Konechne, of the Welfare Rights Committee says, “Pawlenty thought he could get away again with outright stealing of money from poor Minnesotans, as he has done over and over in his term as governor. Finally his thievery has been challenged and the highest court in the state has deemed his actions unlawful. We, the poor and working people of Minnesota, have always known Pawlenty is a thief. The Supreme Court has righteously agreed.”

Now, we demand justice from the legislature. Many democrats have not been stating what really needs to be done. The state of Minnesota has been in a budget crisis for almost a decade. The state of Minnesota and the rest of country are in the worst economic crisis since the 1930s. Still, some – the wealthy – are not feeling our pain. In fact, they are getting richer off of our suffering. It is time for them to pay. We say, tax the rich. The DFL must take this opportunity to propose a budget to tax the rich and undo the cuts.

The Welfare Rights Committee will do whatever it takes to drive this message home to Minnesota’s politicians. The Supreme Court has spoken. Now it is up to the people to make sure the legislature and the governor do the right thing.

#MinneapolisMN #PoorPeoplesMovements #WelfareRightsCommittee #BudgetCrisis #TimPawlenty #unallotment

Chicago Il.– El nuevo gobernador de Illinois, Rod Blagojevich, anunció que el presupuesto estatal falta $5 mil millones de dolares, una semana despues de tomar las riendas de poder.

Todo mundo pregunta ¿Como sucedió esto? Según la organización “Citizens for Tax Justice”, este deficit se debe a dos cosas: En primer lugar, en Illinois los ricos pagan menos impuestos estatales que en todos los otros estados menos cuatro. En segundo, en una recesión la totalidad de los impuestos que se recogen es menos.

Los empleados de la Universidad de Illinois in Chicago (UIC) saben una tercera causa. Antes que nos azotó la recesión “los jefes celebraban una pachanga” dice Tom terranova, principal negociador para 900 trabajadores secretariales en la UIC representados por el local 73 del Sindicato Internacional de Empleados de Servicios (SEIU por sus siglas en inglés). Hizo referencia a una investigación llevada a cabo para el sindicato por el Centro Para Analisis de Política Económica, que discubrió que los maximos jefes adminstrativos en dicha universidad han aumentado sus propios sueldos mas que los aumentos salariales de los demas empleados universitarios durante los últimos diez años. Para los 1 porciento de los jefes que se encuentran in los niveles mas altos, sus sueldos han subido de un promedio de $150,000 anuales , a $250,000.

Los empleados se molestaron especialmente cuando se enteraron que un poco antes de que lo crítico de la situación presupuestuaria fue hecho público, muchos administradores de alto rango recibieron aumentos del último momento. Luego cuando se hizo la declaración de la crisis, se hicieron tambien llamados para cortar el personal. Los grandes aumentos de los jefes no fueron retirados. Dice Terranova que como respuesta a esta crisis “La Administración de la UIC y sus socios políticos en Springfield desean balancear al presupuesto en las espaldas de los empleados”.

Los empleados en local 73 tienen la respuesta a estos ataques: ¡Que corten la “carne de puerco”!

El 12 de Febrero mas de 100 empleados de la UIC y sus apoyadores desfilaron a la reunión de La Junta de Fiscales. Luz Martinez, una integrante del comité de negociaciones, le dijo a los canales de televisión en español 44 y 66 “La administración ha cortado empleos y ha congelado a nuestros salarios. Ya tenemos mucho mas trabajo que hacer. No es justo que nos niegen aumentos”.

Shirley McIntosh, una delegada sindical, dijo a la conferencia de prensa: “Cuando nosotros sufrimos, los pacientes y los estudiantes que dependen de nuestros servicios, sufren tambien”. Sirlena Perry, otra integrante del comité de negociaciones, agregó “una congelación salarial es una reducción salarial, cuando se toma en cuenta que no se han congelado las cuentas que tenemos que pagan. Se aumentaron los costos de estacionamento, de calefacción, de gasolina, como de todo”.

Se llamó la marcha para aumentos salariales y un contrato justo para los trabajadores secretariales. Ademas las pancartas de los manifestantes condenaron los aumentos absurdos de los jefes.

“Estos administradores dicen que todo mundo tiene que apretar el cinturon para aguantar los tiempos difíciles” dijo Christine Boardman, presidente del local 73. “Pero todo el peso cae sobre los empleados. Los salarios y gastos de la alta administración no han sido afectados”.

La presidente Boardman refería a un escándalo que ultimamente ha sido revelado por la prensa. La Junta de Sindicos ha gastado mas de $500 millones para rentar aviones particulares para llevar sus miembros a reuniones y eventos deportivos. Esto fue una insulta adicional. Pero el problema principal no ha sido estsos privilegios. Es que la inflación de los salarios de los administradores le ha costado $25 millones a la universidad en los últimos 10 años.

En el medio de los cortes presupuestuarios, el local 73 ha luchado para defender a los intereses de nuestros miembros en varias frentes de batalla. Se venció el contrato en Agosto, y en las negociaciones para un contrato nuevo, el comité de negociaciones ha buscado mas seguridad de trabajos y para defender a lo ganado en los contratos en el pasado. El sindicato tambien ha buscado legislación, como por ejemplo que el presupuesto de la universidad fuera revisada linea por linea, para asi identificar mejor los posibles ahorros que podrían dirigirse a los salarios de los empleados.

Como resultado del escándalo público y las protestas, los empeados ganaron la concesión de una audiencia sobre nuestras quejas de las inequidades aquí. Ahora, junto con los esfuerzos legislativos, se ha ganado una victoria inicial. Los empleados secretariales ganaron una continuación de aumentos por escalas para este años. Hace años, este tipo de aumentos fueron un derecho que gozaba todo empleado de servicio civil. A los comienzos de los 1990, fueron eliminados para todos los trabajadores. Los trabajadores sindicalizados lucharon para retomarlos en 1993. Retener estos aumentos por escala significa que la mayoría de los miembros del local 73 recibirán un aumento de 4% en la fecha de su aniversario. Pero algunos miembros del local ya han llegado al máximo nivel y no recibirán ningun aumento por escala, de modo que la lucha para un aumento en un contrato justo seguirá.

Cortes de Trabajos y Ataques a los Derechos por Antigüedad.

Lo que la gerencia dio en cantidades pequeñas, buscan retomar en cantidades grandes. Todavia amenazan con 1,200 empleos cortados en toda el sistema de la Universidad de Illinois. Lo peor es que los negociadores de la administración pretenden eliminar las protecciones para los empleados con antigüedad en el trabajo. Sería posible que los administradores de departamentos despidan empleados con muchos años de servicio para traer a gente nueva.

Local 73 responde con una lucha para salvar a nuestros trabajos. Esto involucra en parte acción por parte de los miembros. Tambien se planea un esfuerzo para poner fin al abuso de los trabajadores de “Extra Help”, o sea empleados temporales que no reciben beneficios y trabajan muchos años sin ser colocados en un puesto permanente.

“La lucha sigue” dice Glenda Searcy, otro miembro del comité de negociaciones. “Estamos luchando para todos nuestros miembros, por seguridad en el trabajo y para un aumeto para todo el mundo. Si tienen que seguir sin aumento, las vidas de nuestros miembros se verán afectados. Tenemos que seguir luchando”

#ChicagoIL #News #BudgetCrisis #SEIU #ChopFromTheTop #UniversityOfIllinoisAtChicagoUIC #executivePay #jobCuts

Minneapolis, MN – “Not one dime in cuts to poor and working people! Make the rich pay for the budget crisis!” is the rallying cry of Minnesota's low-income families. As Minnesota faces a massive budget deficit, the Welfare Rights Committee is gearing up to go head to head with state politicians.

“We know that these politicians are already scheming to balance their budget on our backs,” said Kim DeFranco of the Welfare Rights Committee. “We live in one of the richest states of one of the richest countries in the world. Yet, when the crunch comes down, they want to make the poor and working people pay for the crisis.”

Minnesota Governor Jesse Ventura announced that the state budget deficit will run as high as $3 billion. About 40 other states are facing huge budget deficits, too.

“We're already living in crisis. Why should we pay for theirs?” asked WRC's Dede Francis. “Minnesota politicians say we all have to suffer a little. We're already suffering too much. It's not that we all must 'tighten our belts.' The rich and the rest of us are not in the same boat. Let the rich tighten their belts for a change.”

In the last legislative session, Minnesota faced a budget deficit of $2 billion. Legislators used the budget reserve and accounting tricks, as well as some cuts to human services programs and public employees, to pay for the deficit. House Republicans tried to cut medical care and emergency assistance for poor people, but were defeated. In the upcoming legislative session, however, there will be no more reserves or accounting games to use.

“Politicians have a choice – raise taxes or make cuts,” said Linden Gawboy. “We say there are plenty of people and corporations in this state with plenty of money, who got plenty of tax breaks over the years. Politicians should tax the rich instead of hurting poor and working families.”

Five-Year Time Limit Hits Minnesota Families in Time of Recession

On July 1, Minnesota families started to hit Minnesota's five-year limit on welfare. As of October, hundreds of Minnesota families have been cut off welfare. Hundreds more are hitting the time limit and facing cuts each month. Most of those cut off are children.

The Welfare Rights Committee has been fighting against the time limit since it was passed into law. In the 2001 and 2002 legislative sessions, the WRC had bills to repeal the time limit and put a moratorium on the time limit. The moratorium bill passed through the Senate and was a part of the entire budget debate in conference committee. In the end, House Republicans refused to go along with the Senate position in support of a moratorium.

“When the Minnesota government failed to undo the five year lifetime limit on public assistance, they created a non-ending crisis for poor families.” said Angel Buechner. “Already, over 1,200 children have hit the time limit and been cut off survival assistance. This means thousands of Minnesota kids and their caregivers are facing homelessness and hunger.”

According to WRC's Trishalla Bell, “Putting a time limit on survival assistance is a crime even in good economic times. Now we're suffering from a major recession. Tens of thousands of jobs have been lost in Minnesota over the past months. When we're trying to get off welfare, we're the last hired and the first fired.”

The 2001 legislature passed into law some 'hardship extensions' to the time limit. For now, about half of the families hitting the time limit are receiving extensions. Members of the Welfare Rights Committee say that these extensions are not enough. For example, except for the severely disabled, parents have to be working at paid employment for at least 20 hours per week in order to get an extension for their families – a catch-22 which leaves many families cut off. Also, individual counties grant extensions at different rates, pointing to discrimination in the system.

“We won many extensions to the limit, but that's not enough. If even one family is cut off the survival lifeline, it is one too many,” said WRC's Kim Hosmer.

Low-Income Families Gear Up for Battle at the State Legislature

Low-income families are preparing for the 2003 legislative session, which starts on Tuesday, Jan. 7. The Welfare Rights Committee, along with other organizations, will begin the session with a protest at the State Capitol on opening day.

“If Minnesota lawmakers think we are going to just stand by and let them attack us, they've got another thing coming!” declared Bell. She continued, “They're throwing our kids into the street. They're taking food out of our babies' mouths. Now they want to solve the budget deficit they created by cutting us more. We're ready to do battle. Poor and working people are fed up. Our demands are clear. Stop the time limits. Not one dime of cuts. Make the rich pay!”

#StPaulMN #SaintPaulMN #PoorPeoplesMovements #News #WelfareRightsCommittee #BudgetCrisis

Minneapolis, MN – Minnesota's poor are going on the offensive against budget cuts and welfare cut-offs. Faced with a $4 billion budget shortfall, politicians want to balance the budget on the backs of poor and working people. Organizers of the Minneapolis-St. Paul based Welfare Rights Committee have announced plans for hard hitting demonstrations under the slogans, ‘No cuts to poor and working people. Stop the welfare cut-offs,” and ‘Make the rich pay for the crisis.'

“Why should the rich gain and poor people feel the pain?” said Deb Howze of the Welfare Rights Committee.

Budget Crisis

Politicians from both political parties are pushing the idea that everyone needs to sacrifice because of the economic crisis. Newly elected Governor Pawlenty and republican legislators are trying to create a political climate where social services are placed on the chopping block.

Last year, House republicans tried balance the budget by eliminating General Assistance and General Assistance Medical Care – the only programs available to poor individuals who are unable to work – and to eliminate Emergency Assistance to poor families and people in crisis. Those attacks were defeated.

Over the past decade, Minnesota politicians have systematically lowered taxes for the rich and their corporations. This set the stage to allow the current economic downturn to turn a large budget surplus into one of the largest state budget deficits ever.

A Welfare Rights Committee statement makes the case: “Minnesota gave out the largest tax cuts in the entire United States for three of the last five years. 53% of Minnesota's budget surplus went to tax rebates and permanent tax cuts. This adds up to about $9.5 billion dollars of the Minnesota surplus that was squandered for tax cuts and rebates in the last four years. We all know that these cuts and rebates go disproportionately to the rich. Money going into the pockets of the rich contributed to the budget deficit we are facing today. Now it is their turn to pay.”

During the time of state surplus, health and human services got almost nothing. Because lawmakers stole federal welfare dollars from the Temporary Assistance for Needy Families (TANF) block grant to replace state spending, the Department of Health and Human Services was the only department that actually contributed to the surplus.

Rich Must Pay

“Those with the most ability to pay should pay for the budget crisis,” said Trishalla Bell of the Welfare Rights Committee. “They should cut from the corporate welfare, not from the human services that serve our families.”

WRC's Kim Hosmer slammed the idea that rich and poor alike should sacrifice. “It's a whole different thing for someone who has enough money to play the stock market and who can afford to lose on the stock market than it is for those of us who barely have enough money to pay rent and keep food on the table!”

The failure of the Minnesota legislature to deal with time limits on welfare has created a crisis of huge proportions. Nearly 2000 children have been cut off of welfare and are facing homelessness because of the time limit.

The Welfare Rights Committee is pushing legislation that would stop the welfare cut-offs. A major demonstration will coincide with the opening of the legislature. Poor people from around the state will lay siege to the hearings where the budget cuts are debated.

Gillie Townsend states that Minnesota's low-income community will “let the politicians know that this is a crisis for poor people. The politicians are making the rich richer every day and making the poor poorer!”

“The more we stand up for our rights, the more we are heard. People make power,” says WRC member, Jamila Vance.

#StPaulMN #SaintPaulMN #PoorPeoplesMovements #News #WelfareRightsCommittee #BudgetCrisis #Pawlenty

St. Paul, MN – A team of Welfare Rights Committee members marched up with the ladder and put it against the iron gate of the Minnesota governor’s mansion, Sept. 24. Deb Konechne of the WRC climbed to the top. Surrounding her were dozens of angry women chanting “Hey Pawlenty, come out today! We have bills that you must pay!”

Eventually, glaring state troopers gave up, standing by helplessly while members of the crowd came up to the fence one after the other and presented household bills, denials of medical coverage, utility shut-offs and eviction notices. After giving short, impassioned speeches about each bill, the people reached through the fence and put the items in the ‘mailbox’ that Konechne had dropped over the fence onto the governor’s walkway. Amid chants of “Make Pawlenty pay,” the protest ended with the troopers carrying the mailbox into the mansion, for delivery to the Governor.

Biggest cuts in history

The protest by the Minneapolis-St. Paul-based Welfare Rights Committee was against the biggest cuts to the Minnesota’s safety net in history. A statement from the WRC summarizes the worst cuts: “On July 1, the cuts took $125 per month per disabled person from the rest of the family’s welfare grant. This is outright stealing from disabled families and children! On Sept. 1, most of us who are in subsidized housing saw our already-too-small grants slashed by $50 per month. In the future, we looking down the barrel of 100% sanctions for supposed ‘non-compliance’ with welfare rules and a ‘family cap’ that steals from innocent babies.” Besides the cuts to cash welfare, many day care providers had their income cut in half. Over 30,000 Minnesotans lost health care.

Behind the Attack

The cuts were the result of Minnesota politicians making the decision to balance the state’s budget by cutting services and programs for poor and working people, instead of increasing taxes on the wealthy. According to Konechne, “Minnesota legislators stole money from poor families, in the name of ‘balancing the budget.’ While these cuts are having a devastating effect on our families, the sickening reality is the grant cuts to our families didn’t have that much of an impact on the whole state budget. The politicians did it just to be cruel; just to make families on welfare suffer. They have wanted to get rid of welfare for years.”

Yolanda Moore, one of many affected by the cuts, states “The poor get poorer and the rich get richer. If my rent goes up, I might wind up living with Pawlenty. We can’t give our kids a good education and all if we gotta worry about how they’re gonna eat or where I’m gonna get their clothes for the winter. I would like for him to try my living for two years. He needs to just stop it.”

Welfare programs were started during the economic crisis of the 1930s, in response to a near revolt of poor unemployed working people. Today’s economic crisis is showing the need a survival safety net again. For all its problems, the welfare program’s cash grants provide a ‘floor’ below which workers’ wages cannot fall. “Without this, the employers would be paying us around $2 per day, like in other countries,” said WRC’s Trishalla Bell. “Its part of the whole globalization thing.” It is no coincidence that one of first ‘re-structuring’ demands of the IMF to debtor countries is to get rid of social safety nets – from unemployment insurance, to healthcare, to education, to public water systems and on and on.

Minnesota is a racist state. For years, politicians have used welfare as a codeword for ‘Black’, and presented welfare cuts as a way to attack people of color, even though, up until recently, most welfare recipients in MN were white.

WRC’s Deb Howze explains the situation this way; “We all know welfare was not originally for people of color,” referring to how Black parents were shut out of the program at the beginning. But now, “Politicians say, ‘those lazy black people are on welfare; they’re taking our money. We’re not going to take care of them with our tax dollars.’”

Howze continued, “What about white America who uses the government tax dollars? No one is screaming about that. Why? Because it’s the rich who are collecting tax dollars and running with it – that’s the real welfare in this country.”

Recent revelations about Minnesota Governor Tim Pawlenty’s shady financial dealings are a snapshot of the bizarre world the rich inhabit. For over a year, he collected $4500 per month from a fellow republican, but he cannot show what he did to earn his $60,000. Welfare Rights’ Angel Buechner declared, “A man who casually pockets $4500 in one month then has the nerve to slash away at the survival income of poor families who are forced to stretch that amount for 10 months. That is unbelievable.”

WRC’s Birgid Machenik noted, “The rich people want the money for themselves. They are very wrong, they are very selfish – they have it all already and yet they want even more, they are very greedy.”

Organizing

This year, the Welfare Rights Committee has gathered thousands signatures from welfare recipients and other low-income people. Almost every day, WRC members stand outside the doors of the county welfare offices, talking to people, passing out information, letting people know about upcoming protests and signing people up to participate in the battle. Besides having small teams doing outreach, WRC held group leafleting days, complete with signs, bullhorn and speeches.

One of the things that comes with the territory of organizing in the low-income community, and that is more intense this year, is people losing their phones and their housing. “A lot of phones are disconnected pretty fast. Addresses change all the time. But we’ve been at this for over twelve years, and we connect back with folks eventually. For the people we can reach, we keep calling and inviting them, because we know that our lives are pretty hectic right now just trying to survive. We never give up,” said Kim DeFranco.

According to Deb Howze, “The southern Blacks back in the day had to organize – starting with the students, trade unions, churches and agricultural workers forming a united front to help organize people to come together for one cause, to help improve their educations, for the right to vote and to stop the killing of the black people by whites who at the time was lynching people. Just like then, it’s the same now but in a different way. We, the Blacks of America, can’t afford to relax, letting things go by as if nothing is going on. The welfare all around America is showing that the effects of its cuts are cutting people into pieces – and now the people of color are crying out for help. I can go on and on about the struggles of our community and how women are under the attack in this unjust world of ours – the question is the same. We must build and educate the people for the movement. Until then, we will continue to be under attack and poor – and time has proven that.”

Allison Smith, a new member said, “Hopefully we can all still keep doing it, no matter what. No matter how they try to break us down, we can still stay together, because somebody’s got to say something, somebody’s got to be the voice. So many people, they don’t, they can’t or they won’t. So somebody’s got to do it. I hope I can keep being one of those somebodies.”

Taking Action

The Welfare Rights Committee believes in taking action. According Allison Smith, “This is the first time I’ve ran across anybody that actually did something besides just sit around and talk. It’s the perfect place to be if you’re tired of just complaining or hearing other people complaining. Actions are great, I like engaging with other people and getting our issues out there so people can hear it.”

Next Steps

The summer and fall organizing is getting the Welfare Rights Committee in gear for what promises to be a busy legislative session in 2004. WRC is now laying plans to undo the cuts. “We’ve said it for years,” said WRC’s Kim Hosmer, “just because it’s law doesn’t make it right.” WRC believes that when laws make people homeless, hungry and desperate, they have to be struck down.

#StPaulMN #SaintPaulMN #PoorPeoplesMovements #News #BudgetCrisis #Pawlenty

St. Paul, MN – Frente a una pancarta que dice, “Rescate del pueblo pobre y trabajador – No a los billonarios!” las líderezas del Comité por el Derecho de Asistencia Pública anunciaron una campaña para combatir el impacto de la creciente crisis económica en una conferencia de prensa el 29 de octubre. Acompañándolos en la actividad se hicieron presentes miembros del sindicato de oficinistas AFSCME 3800, el Comité Anti-guerra, Mujeres en Contra de la Militarización y otros grupos que luchan por la paz y la justicia.

Tasha Jackson, miembro del Comité por los Derechos de la Asistencia Pública explicó, “Hoy, el 29 de octubre, es el aniversario del derrumbe de Wall Street en el año 1929 – o sea, el comienzo de la Gran Depresión. Estamos aquí en el Capitolio de Minnesota, como gente pobre y trabajadora, exigiendo que el Gobernador Pawlenty y los políticos estatales enfrenten la crisis que está pasando ahora y afecta a nuestras familias en Minnesota.”

Minnesota tiene un déficit presupuestario de casi mil millones de dólares. Observadores creen que la crisis financiaria crecerá en los meses que vienen. En el pasado el estado de Minnesota ha intentado hacer que la gente de bajos ingresos y la clase trabajadora paguen la crisis.

Angel Buechner anunció, “El Comité por los Derechos del Asistencia está iniciando y liderando un esfuerzo para avanzar la agenda del pueblo de Minnesota. Llamaremos a una moratoria a las reposiciones de casas, una extensión de los beneficios del desempleo, una moratoria del límite de tiempo de los programas de asistencia publica, un paro a los despidos temporales y otras iniciativas. Llevaremos nuestro mensaje al pueblo de Minnesota y nuestras demandas a Pawlenty y a los políticos de este estado. Uniremos a gente pobre y trabajadora para exigir que los políticos hagan que los ricos paguen la crisis y que no corten los programas que el pueblo pobre y trabajador necesitamos para vivir.”

#StPaulMN #PoorPeoplesMovements #Labor #News #MinnesotaCoalitionForAPeoplesBailout #BudgetCrisis #capitalistCrisis

Comunidades pobres y de clase trabajadora, ya azotadas por los cesos y reducciones dehoras de trabajo que resultan de la recesión económica, están a punto de sufrir aun mas como los gobiernos estatales y municipales empiezan a cortar los servicios de salud, escuelas y gobierno local, cosas necesarias para nuestras familias.

La recesión ha causado una caída grande en los ingresos de los estados. En Abril, las entradas de los gobiernos estatales mostraron una baja de 20% en comparación con el año anterior. Ademas, las pérdidas en la bolsa de valores ha obligado a algunos gobiernos locales y estales a contribuir mas a los fondos de jubilación de sus empleados. Esta baja en ingresos estatales ha causado que algunos estados han cortado programas y aumentado impuestos. Aquí en California, el deficit que se proyecta es de $25 mil millones, de un presupuesto total de $100 mil millones.

Los estados tambien se encuentran atrapados por la política federal de obligarles a cubrir mas de los costos de bienestar social, en términos de ayuda pública y cuidado de salud. Durante una recesión económica, la demanda para estas servicios aumenta (por ejemplo, el número de personas recibiendo ayuda pública ha aumentado por primera vez en varios años), pero los estados están recibiendo menos ingresos. Porque los estados tienen que balancear a sus presupuestos (cosa que el gobierno federal no necesita hacer) esto significa recortar programas precisamente cuando hay mas necesidad.

Algunos estados, como Missouri y Massachusetts, se han encontrado en una situación tan apretada como para haber necesitado que han demorado la entrega de dinero extra que pagaron los ciudadanos en impuestos. La legislatura de Oregon ha hecho recortes grandes en el presupuesto de las escuelas. El gobernador “Nuevo Demócrata” de California, Gray Davis, ha intentado balancear el presupuesto por medio de cortar servicios de salud para los pobres, cesar a los empleados estatales, pasando la responsibilidad de programas sociales a los condados, y usando dinero prestado, proveniente de los resultados de la demanda en contra de la industria de tabaco, y de distritos escolares.

Minnesota se ha encontrado en una situación presupuestuaria tan mala como para hacerlo recurrir a mecanismos de contabilidad tipo Enron, y con ataques a los servicios sociales. Esto significa que mas tarde este año va a haber una crisis aun mayor. Illinois planea atacar a los empleados públicos. La respuesta de los gobiernos estatales a las deficiencias presupuestuarias es sencilla. Los políticos intentan balancear sus presupuestos en los hombros de los pobres y los trabajadores. En este proceso los mas afectados son las minorías oprimidas.

La crisis de los presupuestos estatales tambien afecta a los municipios y los condados, quienes reciben gran parte de sus fondos del estado. Durante la última recesión, en 1991, California balanceó su presupuesto principalmente cortando los fondos a los condados, que hacían la mayor parte de los servicios sociales. Estas entidades ademas de muchas organizaciones no-lucrativas, se encuentran doblemente impactados, como sus ingresos se van bajando mientras que la necesidad para sus servicios se aumentan.

Por supuesto, si los políticos no fuesen títeres de las grandes corporaciones, sería posible balancear los presupuestos mentras que se mantenían, o hasta expandían, a los servicios sociales. Aqui en California, organizaciones de consumidores, de comunidades y sindicatos, juntos con algunos políticos locales, lucharon a favor de un aumento de impuestos en personas de alto ingreso. Pero la resistencia de la legislatura republicana y el gobernador demócrata paró a este esfuerzo. En vez de eso, el gobernador pretende aumentar los impuestos de cicarros y gasolina, mas imponer un pequeño aumento en los impuestos de ventas, lo que no afecta especialmente a los ricos que son los que pueden pagar mas.

La “guerra en contra del terrorismo” del presidente Bush y sus aumentos de las fuerzas armadas significan que el gobierno federal no da tantos recursos a los servicios de salud y escuelas. Esto aprieta mas a los presupuestos estatales y municipales, que pagan casi la totalidad de los costos de las escuelas. El gobierno federal tambien pudiera ayudar transferiendo mas dinero a los gobiernos estatales y locales. Lo mejor sería si el gobierno federal pudiera cancelar a los cortes de impuestos de los ricos que se implementaron el año pasado, o si rediciera al presupuesto militar. Pero aun sin pedir esto de parte de los político, el gobierno pudiera conseguir dinero prestado y transferir una parte a los gobiernos estatales y municipales, ya que no existe ningún requesito que el presupuesto federal sea balanceado.

Ahora mismo, muchos políticos están utlizando a la crisis del presupuesto para sacar ventajas para las elecciones de Noviembre. Aquí en California, el gobernador está amenazando de parar los cheques de ayuda pública y los fondos para servicios sociales si los republicanos no le aprueben su presupuesto. Piensa echar la culpa a los republicanos con tal de avanzar su campaña re-eleccionista. Los gobiernos municipales y de los condados se van a encarar con mas cortes presupuestuarios cuando se revisa al presupuesto al fin del verano. Los sindicatos y organizaciones comunales deben prepararse ahora mismo para resistir a los cortes de programas que nos acercan.

#EstadosUnidos #Analysis #BudgetCuts #BudgetCrisis #crisisOfCapitalism #welfare #healthCare #safetyNet #warOnTerror #militarySpending

Chicago, IL – The state of Illinois is $5 billion in the red, according to new governor, Rod Blagojevich, who made the announcement one week after he took office in January.

Everyone is asking, “How did this happen?” According to the group Citizens for Tax Justice, the state budget shortfall happened because of two things. First, rich people in Illinois pay lower taxes than in all but four other states. Second, in a recession, fewer taxes are collected overall.

Workers at the University of Illinois at Chicago (UIC) know a third reason. “The bosses were having a party,” says Tom Terranova, chief negotiator for the 900 clerical workers at UIC who are represented by Local 73 of the Service Employees International Union. He was referring to a study the Center for Economic Policy Analysis did for the local, which found that, over the last 10 years, UIC’s top administrators raised their own salaries far above the wage increases for workers. For the top 1% of the bosses, average pay had risen from $150,000 10 years ago to over $250,000 now.

Employees were especially upset to learn, just before the budget crisis was made public, that many top administrators were given last-minute raises. Then, when the crisis was announced, it came with calls to cut service workers’ jobs. The big raises for the big bosses were never undone.

In response to this budget crisis, Terranova states, “UIC management and the politicians that are their partners in Springfield have wanted to balance their budgets on the backs of workers.”

The workers in Local 73 have a response to these attacks: “Cut the pork!”

Chop From The Top!

On Feb. 12, over 100 UIC workers and supporters marched on the University of Illinois Board of Trustees meeting. Luz Martinez, a member of the union negotiating committee, told the Spanish language TV stations 44 and 66, “Management has cut staff and froze our wages. We have much more work to do. It’s not right we should have no raises.”

Shirley McIntosh, a union steward, spoke at the press conference and said, “When we suffer, the patients and students who depend on our services suffer as well.” Sirlena Perry, another member of the negotiating committee, said, “A pay freeze is a pay cut, when you consider that our bills aren’t frozen. Our parking fees went up, gasoline and heating bills went up, like everything else.”

The rally was called to demand wage increases and a fair contract for the clerical workers. In addition, workers’ signs condemned the top administrators’ obscene raises.

“These administrators say that everyone has to tighten their belts to get through hard times,” said president Christine Boardman of Local 73. “But the burden is falling on the workers. Top management’s salaries and spending haven’t been affected.”

President Boardman was referring to a scandal that had broken in the press. The Board of Trustees spent over $500,000 in recent years chartering private planes to travel to meetings and sporting events. Although the main problem isn’t these perks, the news added insult to injury. The main problem is inflation of top salaries, which have cost the university $25 million over the last 10 years.

Union Successful in Saving Anniversary Raises

In the midst of this budget crisis, Local 73 is fighting to defend our members’ interests on a number of fronts. The contract expired in August, and in bargaining for a new contract, the negotiating committee has sought job security and to defend past gains. The union has also pursued legislation such as a line item review for the University’s budget, so that savings could be identified and then redirected to wages for workers.

As a result of the public outcry and the protests, workers won a hearing for our complaints about the inequities. Now, together with the legislative efforts, an initial victory has been achieved. The clerical workers won a continuation of ‘step increases’ for this year. Years ago, step increases were part of every title for civil service workers, but then they were eliminated for all workers in the early 1990’s. In 1993, union workers fought and won to get them back. Keeping step increases means most Local 73 members will get a 4% raise on their anniversary date. However, some members are already on the top stop and won’t get a step increase, and so the fight for a fair contract raise will continue.

Job Cuts and Attack on Seniority Rights

What management gave with a teaspoon, they are preparing to take away with a shovel. There are still 1200 job cuts threatened throughout the statewide University of Illinois system. To make matters worse, the UIC bosses’ negotiators are trying to eliminate the protection for senior workers. This would make it possible for department managers to cut people with longer years of service, in favor of newer hires.

Local 73 is responding with a fight to save our jobs. Part of this will be more actions by the members. Also planned is a legislative effort to stop the abuse of Extra Help Employees – who are essentially temporary workers who receive no benefits and work for years without getting permanent positions.

“The struggle continues,” said Glenda Searcy, another bargaining committee member. “We’re fighting for all of our members, for our job security and for a raise for everyone. Our members’ lives will be hurt if they have to go without a raise. We have to keep on fighting.”

#ChicagoIL #News #BudgetCrisis #SEIU #ChopFromTheTop #UniversityOfIllinoisAtChicagoUIC #executivePay #jobCuts

Raleigh, NC – “We’re in the middle of an historic crisis,” the president of the North Carolina Public Sector Workers Union (UE 150), Angaza Laughinghouse, told Fight Back!. “It requires a historic response from unions, youth groups, faith groups and community organizations to develop the fight back.”

That sentiment is what brought an important mobilization of over 160 community, labor, faith, and political organizations to the state capital on June 15. 300 workers and community members gathered after work to rally on Jones Street before marching into the North Carolina General Assembly to talk to legislators about the budget cuts.

The message, says Jeff Shaw from the North Carolina Justice Center, is simple: “We cannot balance the budget on the backs of the poor. Low-income and minority communities suffer the most in an economic crisis. And budget cuts in times like this will only make things worse.”

“Morally and economically,” Shaw added, “the right thing to do is invest in our community.”

Reverend Barber, the president of North Carolina’s NAACP, agreed. In a powerful speech at the rally, Barber emphasized, “We need to move from talking about tax cuts and tax raises, to a discussion about investing in children, care for the sick, protecting the mentally ill and supporting workers.”

The rally was organized by Together NC and the Historic Thousands on Jones St (HKonJ) Network, two coalitions that are uniting a broad spectrum of organizations, communities and social classes to oppose the budget cuts that will impact workers and oppressed nationalities. North Carolina currently faces a $4.6 billion budget shortfall. Instead of taxing corporations and the wealthy to raise additional revenue, the House is cutting funding from social services and laying off workers.

Public sector workers face layoffs, pay cuts and furloughs. Insurance premiums are going up and some workers are losing their 401k and pension contributions. In addition, the university system’s budget is being cut by 11%. The Department of Health and Human Services is slated for 465 layoffs under the current budget.

Angaza Laughinghouse emphasized that the way out is for workers to organize their communities to raise pressure on the legislators, with a strong message: “We need to tax corporations and the wealthy and make a budget for working people.”

In the coming weeks, organizers with Together NC and HKonJ will be holding town hall meetings around the state and engaging in communities to gather input on the budget process. Organizers are excited with the turnout and enthusiasm among the participants of June 15’s rally and will continue to struggle for a budget – and a budget process – that serves the majority of North Carolina’s people, not the wealthy and the corporations.

#RaleighNC #CapitalismAndEconomy #News #BudgetCrisis #capitalistCrisis

St. Paul, MN – Fifty protesters gathered on tax day, April 15, on the front steps of the Minnesota state capitol building to demand state government tax the rich and not balance the state budget on the backs of working and low-income people. Organized by the Minnesota Coalition for a People’s Bail Out, speakers included leaders of labor unions, low-income groups and anti-war organizations.

Deb Konechne, a spokesperson for the Minnesota Coalition for a People’s Bail Out said, “The wealthy have enjoyed years of state and federal tax breaks, which has led to an enormous concentration of wealth in this country. But what did the wealthy do with this bonus? They ran the economy into the ground. Now state and federal government are preparing budget cuts.”

“People are losing their jobs and homes. It is time the rich make up the difference and pay higher taxes so low-income and working people get a break,” said Mick Kelly, also of the MN Coalition for a People’s Bail Out.

Bernie Hess, of United Food and Commercial Workers Local 789 and the Saint Paul Regional Labor Federation was scheduled to speak but instead was forced to send a message to the rally. He was on duty at a meat processing plant in Buffalo Lake, Minnesota, where over 250 workers were laid off on April 14 with no notice.

Tasha Jackson, of the Welfare Rights Committee said, “The state of Minnesota is in a budget deficit. We say, if the state needs money, go where the money is – tax the rich! Don’t take it from poor and working people.”

The People’s Bail Out coalition has been working for legislation at the state capitol that would provide some basic protections for working and low-income people during the current economic crisis. Among the steps the coalition wants to see enacted are a moratorium on home foreclosures and evictions, an extension of the five-year limit for families receiving public assistance and an end to layoffs of public and University of Minnesota employees.

Rosemary Williams, whose home has been foreclosed on, called on all those present to continue the fight for a moratorium on home foreclosures and for the rights of tenants of properties in foreclosure.

Member groups of the coalition include AFSCME Local 3800, Welfare Rights Committee, Minnesota Immigrant Rights Action Coalition (MIRAc), SDS at the University of Minnesota, Women Against Military Madness, Anti-War Committee, Iraq Peace Action Coalition, Saint Paul Regional Labor Federation, the State Council on Black Minnesotans, UNITE/HERE Minnesota and others.

#StPaulMN #SaintPaulMN #PoorPeoplesMovements #Labor #News #MinnesotaCoalitionForAPeoplesBailout #BudgetCrisis #capitalistCrisis

Deb Konechne, a leader of the Minnesota Coalition for a People’s Bailout told the committee, “What we need is a bailout for the people. This legislation is a people’s bailout bill that addresses many of the issues that people in this state are facing and takes crucial steps to protect low-income and working Minnesotans from the ever-growing economic crisis.”

The act would put a moratorium on housing foreclosures and it would force banks and mortgage companies that foreclose on rental property to honor existing leases, thus preventing tenants from becoming homeless. Many of the touted programs to help homeowners and tenants have not yet taken effect on the ground, so Minnesota needs a moratorium.

The act also would extend and expand eligibility for unemployment benefits, create a new public works program to put people to work and place a moratorium on the five-year lifetime limit for public assistance. The act would prevent layoffs of public sector workers, including workers at the University of Minnesota.

The Minnesota Coalition for a People’s Bailout, a group of community, labor and other organizations, has been working with a broad range of community organizations to win support for the legislation.

“This legislative hearing is an important step in the effort to pass protections for low-income and working Minnesotans from the economic crisis. The act will provide protection from the most damaging affects of unemployment – mortgage foreclosures and evictions,” said Phyllis Walker, President of AFSCME Local 3800, one of the organizations supporting the act.

“Families on MFIP, the state welfare program, are facing a very bleak situation unless there is an extension of the five-year limit on receiving public assistance,” said Deb Konechne of Minnesota People’s Bailout Coalition and the Welfare Rights Committee. Konechne continued, “Grinding poverty, more homelessness, raising small children and living with disabilities in today’s blighted economy is extremely difficult. It is not realistic to expect these families to recover in the limited time currently available to them.”

The act would put in place protections for tenants in rental properties that are foreclosed. Currently, tenants in foreclosed properties can be given as little as a 60-day notice to vacate their rental homes once the bank or mortgage company reclaims the property.

“Tenants should not be made homeless when their landlord loses the property. The banks and mortgage companies have a responsibility to those tenants. Those companies have not voluntarily taken that responsibly, so it is up to the state of Minnesota to force them. Tenants have paid their rent and that rent was supposed to go to pay the landlords’ mortgages,” said Mick Kelly of the Minnesota Coalition for a Peoples’ Bailout.

The act would also put in place a moratorium on foreclosures for homeowners.

“Working people should not be losing their homes due to the economic crisis of the rich and powerful. The federal government is providing hundreds of billions of dollars to banks and corporations. Minnesota must take action to protect the homeowners who are facing foreclosure as a result of the corrupt mortgage market that the homeowner did not create and rising unemployment which is destroying the living standards of working people across the state,” Kelly continued.

The National Alliance to End Homelessness, in a January 2009 report, estimated that 1.5 million more people in the U.S. would become homeless over the next two years. This is over and above the number who would experience homelessness without the effects of the economic crisis.

A broad range of organizations have signed on to support the Bail Out Act, including the Saint Paul Regional Labor Federation, representing union households in the east metro area; AFSCME Council 5, the State Council on Black Minnesotans; AFSCME Local 3800, Elim Transitional Housing, Inc, Welfare Rights Committee and many others.

#StPaulMN #SaintPaulMN #PoorPeoplesMovements #Labor #News #MinnesotaCoalitionForAPeoplesBailout #BudgetCrisis #capitalistCrisis

The coalition will hold a rally on Tuesday, Jan. 6 at noon on the State Capitol front steps on the opening day of the Minnesota legislature.

The coalition advocates legislation that would provide income and jobs to the unemployed, a moratorium on home foreclosures and evictions from foreclosures and measures to prevent layoffs to public employees.

Deb Konechne, a spokesperson for the Coalition said, “If taken by the legislature, these steps would constitute real change that protects low-income and working people in Minnesota.”

“The banks and corporations are getting a bail out. We need a bailout for poor and working Minnesotans,” said Konechne. Deb Konechne is also a leader of the Welfare Rights Committee.

Coalition leaders vow to combat attempts to balance the budget on the backs of poor and working people and will oppose any attacks on undocumented immigrant workers.

States Phyllis Walker, President, AFSCME Local 3800, “The leaders of the state legislature and have joined Governor Pawlenty in calling for massive cuts in the state budget, cuts targeted directly against low-income people. We are going to the capitol with to make it clear that working people are not the cause of the present crisis and we should not be the victims.”

The January 6th protest is being called in support of a program that includes:

    \* Jobs or income now!

    \* Extend unemployment benefits for all.

    \* Make more workers eligible for unemployment benefits.

    \* Create a public works program that puts people to work now.

    \* Place a moratorium on the 5-year time limit for public assistance.

    \* No cuts to programs that serve working and low-income people!

    \* Place a moratorium on home foreclosures

    \* No evictions for renters in foreclosed buildings

    \* No attacks on immigrants!

    \* Protect public education. No tuition hikes!

    \* No one in Minnesota should be cold or hungry!

    \* No layoffs.

    \* No attacks on wages; no layoffs for state and University of MN workers

    \* Tax the rich, make them pay for the crisis

Coalition members say that they will not only focus on the state legislature, but will take the campaign for a People’s Bailout to other forums as well in the months ahead.

“We will be going to city councils, sheriff foreclosure sales, housing court and the streets to do whatever can be done to defend the interests of working people in Minnesota against the onslaught of budget cuts and attacks on needed services,” said Deb Konechne.

“Only with the largest mobilization of working people, trade unionists, students, low-income people and others can the current political agenda of cut backs and attacks on living standards be changed to one that puts the burden of the current economic crisis where it belongs, on the corporations, the politicians and those who have made super profits while real wages and living standards have remained stagnant,” said Mick Kelly, of the Minnesota Coalition for a People’s Bail Out.

#Minnesota #MN #PoorPeoplesMovements #StudentMovement #Labor #News #BudgetCrisis #capitalistCrisis #MinnesotaCoalitionForAPeoplesBailOut

St. Paul, MN – While state officials announced a record $5.2 billion dollar budget deficit at the State Capitol here, Dec. 4 , about 25 members of the Minnesota Coalition for a People’s Bailout were outside the room chanting, “Hey politicians, here’s the fix! Tax the rich! Tax the rich!”

Calling the budget situation “ugly,” state economist Tom Stinson raised the possibility the economy could be entering its worst period since big recession of the 1980s or the great depression of the 1930s.

Deb Konechne, of the MN Coalition for a People’s Bailout and the Welfare Rights Committee, talked to reporters outside the forecast presentation about fighting the effects of the crisis, stating “Low-income organizations, community groups, labor unions, immigrant rights organizations and others who are working for justice are coming together to meet the effects of the economic crisis head on. We cannot afford to allow the funding and programs that serve working and low-income families to be placed on the chopping block. We need solutions to the problems we face.” Members of the Welfare Rights Committee held a banner reading, “Bail out poor and working people, not billionaires.”

The MN Coalition for a People’s Bailout is pressing for legislation that would provide income and jobs to the unemployed, a mortitorum on home foreclosures and evictions from foreclosures and measures to prevent layoffs to public employees. Together, these measures constitute a bailout for poor and working Minnesotans. Coalition leaders vow to combat attempts to balance the budget on the backs of poor and working people, and will oppose any attacks on undocumented immigrant workers.

Phyllis Walker, a Coalition leader and president of AFSCME Local 3800 says, “We reject the notion that we all need to ‘tighten our belts,’ when our belts are already on the last notch. We also reject the notion that we ‘all have to suffer a little.’ We are already suffering too much. While the rich were enjoying their ‘tax relief,’ we have been living through rising unemployment, poverty and skyrocketing homelessness. Poor and working-class families did not cause the budget crisis, and we should not have to pay for it.”

The Dec. 4 forecast presentation and protest was another round in what promises to be a tough battle at the capitol in 2009. Minnesota Governor Tim Pawlenty, who is politically close to the failed presidential candidate John McCain, has ordered state agencies to prepare for 10% spending cuts. The state legislative leadership (all Democrats) have not raised the possibility of taxing the wealthy or rolling back past corporate tax breaks.

“We fully expect that the governor and many legislators will be pushing for schemes to further impoverish Minnesota’s people. We will not stand for it. We ‘forecast’ that working people and low-income people of Minnesota will fight them every step of the way. And AFSCME Local 3800, a partner in the Minnesota Coalition for a People’s Bailout, will be in the forefront of that fight,” said Phyllis Walker.

#StPaulMN #SaintPaulMN #PoorPeoplesMovements #Labor #News #MinnesotaCoalitionForAPeoplesBailout #BudgetCrisis #capitalistCrisis

St. Paul, MN – Standing in front of banner reading, “Bail out poor and working people – not billionaires!” leaders of the Welfare Rights Committee announced a campaign to combat the impact of the growing economic crisis at a press conference here, Oct. 29. They were joined by members of AFSCME Local 3800, the Anti-War Committee, Women Against Military Madness and other peace and justice groups.

Tasha Jackson, of the Welfare Rights Committee stated “Today, Oct. 29, is the anniversary of the 1929 Wall Street crash – which for many marked the beginning of the Great Depression. Today on Oct. 29, we are here at the Minnesota State Capitol, as poor and working people, to demand that Governor Pawlenty and state politicians address the economic crisis that is going on right now, right here, for our families in Minnesota.”

Minnesota is facing a budget deficit of nearly a billion dollars. Observers expect that the budget crisis will grow worse in coming months. In the past the state of Minnesota has attempted to balance the budget on the backs for low income and working class people.

Angel Buechner announced, “The Welfare Rights Committee is initiating and leading an effort that will forward a People’s Agenda in Minnesota. We will call for a moratorium on foreclosures, an extension of unemployment benefits, a moratorium on the welfare time limit, a freeze on layoffs as well as other initiatives. We will be bringing our message to the people of Minnesota and bringing our demands to Pawlenty and policy makers in this state. We will bring together poor and working people to demand no cuts to poor and working people, and that politicians make the rich pay for the crisis.”

#StPaulMN #SaintPaulMN #CapitalismAndEconomy #PoorPeoplesMovements #News #WelfareRightsCommittee #BudgetCrisis #capitalistCrisis

Adding to economic woes are continued problems in the banking industry. The same Friday as the new unemployment report came out, the Federal Deposit Insurance Corporation (FDIC), which guarantees deposits at banks, shut down the Nevada-based Silver State Bank and will have to pay an estimated $500 million to cover the banks losses. This is the eleventh bank closed by the FDIC so far this year, more than the total number of bank closings in the last five years. In addition, on Sunday, Sept. 7, the U.S. Treasury Department announced that it was placing the Fannie Mae and Freddie Mac under government conservatorship due to growing mortgage losses. These two corporations help to fund about half the country’s mortgages.

In addition there are growing state and local government budget deficits. Most states are having budget problems as the recession cuts into tax revenues even as demand for government services rises. Here in California, Republican legislators have blocked passage of a state budget for over two months. Short of money due to a $15 billion shortfall in tax revenues, the state has begun to cut off payments to nursing homes and board and care facilities for MediCal patients (MediCal is California’s health care program for low-income people that is half funded by the federal Medicaid program), childcare centers, mental health programs and state aid for college students.

In the last recession in 2001, the Federal Reserve Bank was able to slash its key interest rate to get households to borrow and spend more, leading to a burst of consumer spending that helped to lift the economy out of a recession. Car companies were able to offer zero interest loans, boosting car sales. Banks were able to lower interest rates on mortgages, leading to more home sales and housing construction.

Over the last year the Federal Reserve cut its key interest rate, the Federal Funds rate, from 5.25% to only 2%. But banks and mortgage companies, reeling from the mortgage crisis and downturn in home sales and prices, have not been able to lower mortgage interest rates, with the standard 30-year, fixed interest rate mortgage having the same interest rate as a year ago. At the same time, car-makers, caught between declining sales due to higher gas prices and a credit crunch stemming from the mortgage mess, have not been able to stimulate car sales.

With the Federal Reserve’s monetary (interest rate) policy unable to revive the economy, Congress voted for $100 billion of tax rebates sent to households and $50 billion more in tax breaks for businesses. Household income and spending did take a big jump in May, and held up in June, only to sag in July as the tax rebates ran out (the business tax cuts are more longer term). Higher prices wore down purchases as the purchasing power of workers’ wages fell by more than 3% from a year earlier as inflation outran paychecks in the month of July.

The Democrats are arguing for a second stimulus package which would include $65 billion more tax rebates and $50 billion for government infrastructure and to help out state and local governments with growing budget crisis. While the tax rebates are likely to only have a temporary impact on the underlying economic crisis (if $100 billion only boosted the economy for two months, how long will $65 billion last), the aid to state and local governments could help to prevent big cuts in health and education spending.

Even worse, the McCain campaign is questioning the need for more spending by the government for individuals, local governments and infrastructure. They want to further cut business taxes and make Bush’s tax cuts for the wealthy permanent. At the same time the McCain campaign promises to balance the budget, which can only mean massive cuts in Medicare and Social Security as military spending (the other large federal program) can only grow with McCain’s foreign policy views. McCain also wants to virtually eliminate employer health care and instead have people buy private insurance with government subsidies, which would lead to even more profits for health insurance corporations while leaving more with less or no health insurance. The McCain campaign promises to strengthen the U.S. dollar (without saying how), which they claim will solve the country’s economic woes. This view echoes former President Herbert Hoover who tried to fight the great depression by trying to increase business confidence. McCain and the Republicans want to 'stay the course' with the Bush administration’s economic policies that have led the economy and the lives of working people in particular to the current mess.

The defeat of McCain and the Republican right has to be priority number one to defend the standard of living of working people in the United States. But a new Democratic administration is likely to follow a pro-business course given its backing by sectors of Wall Street and billionaires, much like Franklin Delano Roosevelt’s policies during his first two years in office at the depth of the Great Depression. In the 1930s it was the organization and militancy of working people that led to reforms such as Social Security and unemployment insurance in 1935 (which McCain wants to 'reform' or privatize). Only by a growing militant fight back in the workplace and community and on campus, can working people put the burden of the crisis on the rich and defend our livelihoods homes and education.

#SanJoseCA #Analysis #Unemployment #BudgetCrisis #capitalistCrisis #bankBailout

Poor and working class communities, already hit hard by layoffs and shorter work hours from the recession, are about feel more pain as state and local governments cut health care, education, and other social services that our families need.

The recession has caused a large fall in state tax revenues. In April, taxes paid to state governments fell more than 20% from a year earlier. In addition, the falling stock market has forced some state and local governments to chip in more money to their employees' retirement funds. This drop in tax monies has led state governments to cut social programs and raise some taxes. Here in California, the projected budget deficit for the 2002-03 fiscal year is $25 billion, out of a total budget of $100 billion!

Currently, 43 states are experiencing budget shortfalls. The National Governors' Association estimates that state budget deficits will come in between $40 and $50 billion for fiscal year 2002. All this adds up to the deepest set of state budget crises in 20 years.

States are also in a bind because of the federal government policy of making them more responsible for the safety-net in terms of health care and welfare. During a recession, demand for these services increases (for example, there has been an increase in the welfare rolls for the first time in years), but states are faced with less tax revenues. Because states (unlike the federal government) must balance their budgets, it means cutting back on programs just when the need is greatest.

Some states, including Missouri and Massachusetts, have found their budget situation so bad that they have resorted to delaying payments for state tax refunds in order to conserve cash. The Oregon state legislature has made major cuts to their schools' budgets. California's “New Democrat” Governor Gray Davis is proposing to close the state budget gap by cutting health care for the poor, laying off state workers, shifting social service programs to county government and by borrowing monies from school districts and the tobacco lawsuit funds.

Minnesota has responded to its budget crisis by attacking social services and by Enron-type accounting practices – which means that a larger budget crisis will develop later this year. Illinois plans to attack public employees. The response of state governments to the budget shortfalls is simple. Politicians try to balance the budget on the backs of poor and working people. In this process, the hardest hit are the oppressed nationality communities.

The state budget crisis also threatens city and county governments, which receive much of their funding from the state. During the last recession in 1991, California balanced its budget mainly by cutting funds to counties, who are the providers of most social services. These local governments, as well as many non-profit social service agencies, are feeling a double whammy as their tax revenues and donations decline, even as demand for services increases.

Of course, if politicians were not in the pockets of big business, the budget deficits could be closed while continuing to fund, or even expand, needed social services. Here in California, consumer, community, and labor organizations, along with some local politicians, fought for an increase in taxes on high-income households. However, opposition from the democratic governor and republican legislators stopped this effort. Instead, the governor is supporting a small increase in sales taxes, as well as taxes on cigarettes and gasoline – both of which would not single those who can best afford to pay: the rich.

President Bush's “war on terrorism” and his big military build-up mean that the federal government budget skimps on spending for education and health care. This adds to the pressure on state and local budgets, which pay for almost all schooling. The feds could help by transferring funds to state and local governments. It would be best if the federal government cancelled last year's tax cut for the wealthy, cut back on the huge military build-up, or both. But even without asking this of politicians, the federal government could borrow more money and transfer the funds to state and local governments, since the federal government does not have a balanced budget requirement.

Right now, many politicians are trying to use the states' budget problems to position themselves for the upcoming elections in November. Here in California, the governor is threatening to stop welfare checks and funds for social services if republican legislators won't agree to his budget – hoping to blame them, and help his reelection campaign. City and county officials will also be faced with more cuts after state budgets are revised or passed this summer. Community organizations and labor unions need to get organized now to fight the program cuts that are coming down.

#UnitedStates #Analysis #BudgetCuts #BudgetCrisis #crisisOfCapitalism #welfare #healthCare #safetyNet #warOnTerror #militarySpending

As reported by Fight Back News Service on March 20, workers in the Patient Access department at UIC were locked out of their workplace for wearing t-shirts that opposed a recent decision to nearly double their workloads.

On Tuesday, March 24, an email was sent to the employees in the department informing them that they would be paid for the time they were locked out.

SEIU Local 73 will still go forward with plans to file an Unfair Labor Practice charge against the employer for denying the workers’ right to wear their union t-shirts.

Here is a video of workers and the UIC-ABC (United In Campaign Against Budget Cuts) picketing outside the department on March 20.

#UIC #ChicagoIL #News #SEIULocal73 #BudgetCrisis #Lockout #speedup

The department manager, Paula LaGioia, met them as they were taking off their coats. Those that had already swiped in were told to swipe out, while those that hadn’t were told they couldn’t work until they had removed the offending shirts.

The workers were being locked out.

‘Reg Rate’ Doubled

The message on the shirts was a statement against management having nearly doubled the work load three weeks earlier. The ‘reg rate’ had been an average of five patient registrations confirmed and insurance verified every hour of every work day. Without warning, management increased it to 8.

“What they are doing is setting us up so they can get more work done with fewer people, regardless of the consequences to quality or safety,” explained Leti Rios, a worker in the department.

Regina Russell, a union steward in the department, explained, “The workers decided on the t-shirt day on casual Friday. Wearing union messages is a protected activity and we never imagined that management would react this way.” The color of the shirt was chosen because purple is the recognized color of SEIU, their union.

After the workers’ union representative, Jeff Dexter of SEIU Local 73, reached Steve Cox, the director of Labor and Employee Relations, management realized that locking out workers was a big mistake. At 8:30 am, the decision was reversed and the workers who were stuck outside the door of the building were told they could work, but only if they covered their union shirts or turned them inside-out.

Dexter noted, “This is a partial victory, but management is still denying our members’ right to act in a concerted fashion.”

Workers Fighting Mad

If UIC thought that the workers would be intimidated, they guessed wrong. At lunch time the sidewalk in front of the building was the scene of a lively picket line, called as an emergency response to the lock out. The workers came out of the building, proudly showing their matching shirts and some workers that had not been part of the campaign joined them, donning shirts at the rally. The workers were joined by the Graduate Employees Organization, as well as other activists from the campus coalition against budget cuts.

The lunchtime protest ended with a march to the lawn outside Paula LaGioia’s office, where workers chanted, “Hey Paula, you know, you locked us out, we still won’t go!”

UIC Balances Budget on Backs of Workers, Students, Community

The budget crisis at UIC has brought a number of attacks around the campus. Earlier in March, a coalition of affected groups came together. Calling itself UIC-ABC (United In Campaign Against Budget Cuts), and spearheaded by the GEO, they launched a round of protests, including several rallies with students and employees criticizing the administration about how the cutbacks have affected them.

At a teach-in held on Feb. 25, Sarita Heer of GEO explained, “We have lost 150 graduate employees since last semester, who were not rehired for the new spring semester because of the cuts.”

And at the speak-out held on Mar. 18, Tawanda Vaughn, a Building Service Worker (BSW) and a leader in Local 73, said, “Thirty Building Service Workers have been cut – one in ten of all BSWs.” These workers were ‘900 hour’ employees, a temporary position, but working side by side with the permanent employees. According to Vaughn, “Every remaining worker has to work harder to cover their areas.“

At the same event, Lindsey Martin, a first year medical student, spoke passionately about the Family Medicine and Women’s Health clinic run by UIC in the Latino neighborhood of Pilsen, and now slated for closure in June. The coalition, including the Movimiento Estudiantils de Aztlan (MEsA), LUCHA and the Pilsen Alliance, an organization from the heavily immigrant community, rallied on Mar. 4 to save the clinic from the chopping block. “Without the accessible preventive care provided to the low income patients, I fear someone among those patients will die,” warned Martin.

The next step for the coalition will be putting pressure on the state legislators in the budget process. Lobby days and visits to legislators’ offices will continue the fight started in the protests on campus and on the streets around UIC. The coalition has an answer to the budget crisis. According to Amber Cooper of GEO, “Not only do the administrators who earn more than $100,000 need to take a 10% pay cut immediately, but also legislators need to go back to properly funding UIC like they did years ago and return UIC to truly being a ‘public’ university.”

#UIC #ChicagoIL #News #SEIULocal73 #BudgetCrisis #speedup

St. Paul, MN – Chanting, “Hey Pawlenty here’s the fix: Tax the rich, tax the rich,” more than 50 people rallied in front of the Governor’s Mansion here, June 30 to slam Governor Pawlenty’s plan to cut hundreds of millions from health care, education, local government aid and human services. The protest was organized by the Welfare Rights Committee and backed by the Minnesota Coalition for a People’s Bailout.

Starting July 1, Pawlenty stated that he will ‘unallot’ money from the state budget. Many observers believe this move is illegal. Deb Konechne of the Welfare Rights Committee stated, “Pawlenty has declared himself dictator. He is abusing a process that was intended for emergencies, not for a politician’s political gain. While Pawlenty has his eyes on national ambitions, he intends to leave a destroyed Minnesota in his wake. Pawlenty is butchering programs that working people and poor families need now more than ever because the recession. Then he lets the rich get by without so much as a scratch!”

Tasha Jackson, a member of the Welfare Rights Committee stated, “It is clear that Governor Pawlenty has declared a war on the people of Minnesota. While he slashes billions from poor and working people, the rich are not paying one dime for the state budget crisis.”

#StPaulMN #SaintPaulMN #CapitalismAndEconomy #PoorPeoplesMovements #News #WelfareRightsCommittee #MinnesotaCoalitionForAPeoplesBailout #BudgetCrisis #capitalistCrisis