Brown Should Look to Virginia, Not Unions, to Solve Budget Shortfall

California's governor is facing a dire budgetary situation and has proposed a 10 percent pay cut for all nonunion public employees in the state. This drastic move is needed, claims Governor Jerry Brown (D), in order to keep the state financially solvent and whittle away at the projected $25.4 billion shortfall. In addition to cutting pay of non-union state employees, Brown has proposed cuts to the state's social programs and proposed extending tax hikes for an additional five years. The reaction to Governor's plan has been lukewarm among legislators, many of whom realize the need to balance the state's budget yet are wary of deep cuts. Like California, the Commonwealth of Virginia also finds itself with a budget deficit, albeit not nearly as large. Virginia's Governor, Bob McDonnell (R), has proposed a series of measures to close a budgetary shortfall, including privatizing the state's liquor stores and shifting mandatory pension contributions to individual state employees. If state employees are forced to contribute to the state's pension plan, they would see a 2 percent pay reduction. Governor Brown's proposal to cut state employee pay is likely long overdue, as the average salary of a state employee in California is $57,563. Yet Brown's failure to extend pay cuts to unionized employees reeks of cronyism. California's unions spent nearly $25 million to get Brown elected, and if his plan is approved, it appears to be money well-spent. True reform would include the renegotiation of union contracts to levels more inline with their private and nonunion counterparts. Unlike California, Virginia's proposal is equitable and extends to all state employees regardless of their union status, and will therefore be more likely accepted by state legislators and the public.