March 2, 2011

Changes to Ohio's collective bargaining needed for fiscal stability

Eileen Norcross

Senior Research Fellow

The Ohio state government is considering changes to workers' collective bargaining rights, and by taking steps to make changes in its pension system, Ohio is the right track to securing fiscal stability for future workers.

Making these changes will give the state more flexibility in the future.  The state has to consider the benefits it has promised, and these changes will give Ohio more control over future costs.

While the proposed changes will alter payments to public-sector workers, the state government has an obligation to all taxpayers.

Is it fair to ask the taxpayers to bear the consequences and costs of poorly managed plans?  Bad math has given these plans a sense of overfunding, and now taxpayers, who were not party to these agreements, nor were they given any indication of the costs of these agreements, have no choice but to pay the bill.