Going, Going Gone--Power Plants for $1 – The Valentine’s Day Sweetheart Deal
Posted: Sunday, February 27, 2011
by Sam Martin
U.S. Supreme Court ruled in January 2010 (Citizens United v Federal Election Commission) to allow unlimited corporate and union spending in federal campaigns and opened a can of worms. On the surface it would appear what’s happening in the State of Wisconsin is simply an attempt to defeat the Unions, but If we don’t pay attention, this can of worms has far reaching tentacles with the potential of putting one political party, Republicans, in control of the entire country.
During the 2010 election cycle Koch Industries Inc Political Action Committee (KOCHPAC) donated $43,000.00 to the Scott Walker campaign as follows: $15,000.00 on July 9, 2010 and $28,000.00 on September 27, 2011, according the Center for Responsive Politics website based on information from FEC dated released on February 3, 2011.
Personal donations from David H. and Julia F. Koch to Republican candidates were $201,550 in 2010, with his brother Charles G. and Elizabeth Buzzi donating $210,600 to Republican candidates in 2010. The breakdown of these donations may also be viewed on the Center for Responsive Politics website.
When it comes to total donations for 2009-2010 Koch Industries came in first in the oil and gas industry with total campaign donations of $1,911,212, to Federal candidates, Parties and outside groups, with only a very small sliver (6%) going to Democrats, while(93%) went to Republican candidates. Due to the Supreme Court ruling it’s virtually impossible to account for all contributions that may have gone directly or indirectly to Scott Walker from Koch Industries, during the 2010 election.
Scott Walker did win the election on November 2, 2010 beating Democratic candidate Tom Barrett 52% to 46%. Walker took the oath of office on January 3, 2011 and by the end of January, Walker pushed the state legislature into passing three bills providing additional tax cuts for business. These tax cuts simply add to the projected $3.6 billion dollar budget shortage through 2013.
Walker announced, in February, he wished to adjust public employee contracts in an attempt to help balance the budget. He wanted state employees to pay 5.8% of their salaries toward their pension costs and pay 12.6% of health care premiums, while giving up collective bargaining rights. These are huge cuts for Wisconsin public employees. They currently do not contribute to their pension costs and Wisconsin is one of only four states that had fully funded pensions at the end of 2008.
These employees currently pay approximately half of what Walker is suggesting towards health care premiums, so between the 5.8 increase in pension costs and another 6% increase in health care costs, this Governor is asking public employees in Wisconsin to give up approximately 12% of their paycheck.
In addition, Walkers adjustment to public employee contracts would not allow employers to collect union dues in paychecks.
The Republican controlled Wisconsin State Senate is split 19-14 and requires a quorum of 20 to proceed with any votes. When the Democrats walked out of the Senate and left the State of Wisconsin, it put a real damper in Walker’s union-busting plan because no legislation can be voted on with less than 20 Senators present.
Is this simply about busting unions or does it go deeper than that?
On February 14, 2011 Senate Bill 11 was introduced by Committee on Senate Organization, by Request of Governor Scott Walker. Referred to Joint Committee on Finance. Senate Bill 11 contains the following provision:
“16.896 Sale or contractual operation of state-owned heating, cooling, and power plants. (1) Notwithstanding ss. 13.48 (14) (am) and 16.705 (1), the department may sell any state-owned heating, cooling, and power plant or may contract with a private entity for the operation of any such plant, with or without solicitation of bids, for any amount that the department determines to be in the best interest of the state. Notwithstanding ss. 196.49 and 196.80, no approval or certification of the public service commission is necessary for a public utility to purchase, or contract for the operation of, such a plant, and any such purchase is considered to be in the public interest and to comply with the criteria for certification of a project under s. 196.49 (3) (b)."
What the above paragraph basically says is, once this legislation is passed, the State of Wisconsin may sell any state owned heating, cooling or power plant without open bidding. In other words, Koch Industries whose primary interest is energy could very well pick up all state owned heating, cooling and power plants, for little or nothing.
If Walker can get his legislation passed it will do two things, it will decrease the amount of money going to public employees by at least 12%, and it will eliminate the ability of employers to collect union dues.
Historically, unions have supported Democrats over Republicans. If you reduce the amount of money individual union workers are receiving, you have that much less going into the union treasury to be spent on political candidates. If you eliminate the ability of employers to collect Union dues, you are slowing the flow of funds from union members to the various unions and finally to political candidates/parties.
Koch Industries has been ranked among the top 10 U.S. polluters by Greenpeace. Can this country really afford to have Koch Industries in charge of heating, cooling or power plants?
Sam Martin has recently retired and is living in the Midwest.
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