Shared Sacrifice

by Jerry Kremer

Hats off to five Long Island school district teacher unions who have decided to freeze their raises for the coming year.In some cases the unions have also agreed to hold back on their annual step increases which results in a further saving of tax dollars.

For countless years the school community on Long Island has been one of the state's most aggressive regions in asking for more state aid. The Long Island members of the state legislature in turn, have demanded and gotten continuing increases in school aid, even in years when there were few dollars available.

Between now and Memorial Day two things are needed to help the state wipe out its $9 billion budget deficit. Unions throughout the state should be willing to forego their salary increases for the next two years. This shared sacrifice shouldn't come from teacher unions alone. It should come from state employee unions who have to pitch in at a time when their cooperation is needed the most.

If the various unions that rely on taxpayer funding agree to freeze their raises the state legislature will have at least $2 billion (and possibly more) worth of savings as they attempt to eliminate the current budget gap. These savings along with some serious cuts in state expenses might be the formula for a balanced budget in 2010-2011.

If the legislature can count on freezes on employee compensation, it has every right to consider borrowing some moneys to make up the yawning gap between revenues and expenses. But there is a catch. The study by Lt. Governor Richard  Ravitch condones additional borrowing but it also calls for some type of financial controls to prevent future deficits from growing even bigger.

Borrowing more moneys without any restraints on future spending is the equivalent of the state taking out a taxpayer funded home equity loan. It isn't fair and it isn't good budgeting. Sooner or later the rating agencies will call the legislature's bluff and downgrade state borrowings at an added cost to the taxpayers.

A handful of local unions have had the courage to fire a shot that should be heard around the state. If all of the unions do the same they deserve a standing ovation. If the unions are willing to give up immediate gain the legislature should be willing to give up some of its cherished power to get the state back on solid financial footing.