Are Public Employee Unions To Blame For States’ Budget Crises?
A disturbing number of people are blaming public sector unions for states’ current budget crises (also here, hereand here). Their basic argument is that unions have seriously exacerbated budget shortfalls because a significant proportion of state spending is tied up in employee compensation, and unions, via collective bargaining, increase salaries and benefits. As a result, so the line goes, unions have created unsustainable expenses for state governments in a time of declining or still-recovering revenues.
Needless to say, the relationship between unions and state revenue/spending is complex. The claim that unions are responsible for state budget gaps (or at least for larger gaps) is therefore extremely difficult to examine, especially during a fiscal crisis. Nevertheless, we can take a quick, modestly rigorous look.
