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Senate Defeats $10 Billion States Bailout 51-46

Moore: A Case Study in Teacher Bailouts

By STEPHEN MOORE

Milwaukee

The Obama administration is pressuring Congress to spend $23 billion to rehire the more than 100,000 teachers who have been laid off across the country. Before Congress succumbs, it should know about the unfolding fiasco in Milwaukee. Wisconsin is a microcosm of the union intransigence that’s fueling the school funding crisis in so many cities and states and leading to so many pink slips. It also shows why a federal bailout is a mistake.

Because of declining tax collections and falling enrollment, Milwaukee’s school board announced in June that 428 teachers were losing their jobs—including Megan Sampson, who was just awarded a teacher-of-the-year prize. Yet the teachers union, the Milwaukee Teachers Education Association, had it within its power to avert almost all of the layoffs.

The average pay for a Milwaukee school teacher is $56,000, which is hardly excessive. Benefits are another matter. According to a new study by the MacIver Institute, a state think tank, the cost of health and pension benefits now exceeds $40,000 a year per teacher—bringing total compensation to $100,500.

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House Passes $10 Billion States Bailout 215 to 210

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