‘Gloom and doom’
Determined to find a leverage point, Walker began to lay out what he viewed as the county’s desperate financial picture.
Through attrition, layoffs and mass retirements, the employee base was down more than 1,000, or 15%. Even law enforcement ranks were down 10%.
But retirement and health care obligations were still rising, threatening to force deeper service cutbacks.
Walker saw government through a business lens.
He did not want to pass on huge legacy costs to his customers — the taxpayers.
Yet Milwaukee’s business establishment was at odds with some of Walker’s proposals.
The Metropolitan Milwaukee Association of Commerce had no problem with reining in pay and benefits. But it wanted better public transit to bring workers to jobs, and more county funding to sustain cultural institutions.
“You can’t cut your way to prosperity,” MMAC head Tim Sheehy said at the time.
Business leaders thought Walker should consider a new tax. But Walker blocked an advisory referendum sought by the County Board on a new sales tax for parks, transit and law enforcement.
The county could do more with less, he insisted.
He’d point to parks director Sue Black, who’d won national praise for restoring life to many attractions with help from private donations and sheer force of will.
On Black’s watch, Bradford Beach was rejuvenated, the county built new swimming attractions, the Washington Park bandshell reopened and the Hoyt Park pool was restored.
Walker went ahead with his plan to highlight the county’s deep problems. It was risky, because it undermined his narrative of making progress.
Abelson called it a “Gloom and Doom Tour.” Walker acknowledged using a worst-case scenario.
In late 2006, after the County Board rejected a privatization plan, Walker moved to hire private contractors anyway, and released a videotape of a custodian sleeping during a shift. AFSCME sued.
The strategy restarted negotiations.
Three days after Christmas 2006, union and county negotiators agreed on a deal covering 2005-’08.
The deal included limits on pension payouts for newly hired workers, but not existing ones.
That partially fulfilled Walker’s campaign promise.
The concession came with a price. The county acquiesced to protections against layoffs and privatization, and awarded raises.
Walker didn’t think the deal went nearly far enough, but he swallowed it.
Abelson called it a “successful contract.” AFSCME members backed it 80% to 20%.