This entry by AFSCME Secretary-Treasurer Lee A. Saunders is cross-posted from Huffington Post and Firedoglake.

Last week, the U.S. Securities and Exchange Commission did something it has never done before. It charged the state of New Jersey with fraudulently misleading investors about the health of the state’s pension plan. From 2001 to 2007, the SEC charged, the state gave out false information about the state’s retirement funds. They cooked the books. Now investors, taxpayers and retirees are left to clean up the mess.

Robert Khuzami, Director of the SEC’s Division of Enforcement, said: “The State of New Jersey didn’t give its municipal investors a fair shake, withholding and misrepresenting pertinent information about its financial situation.

It is not just investors who are not getting a fair shake. Taxpayers and retirees are being abused as well. While the state failed to adequately invest in their retirement funds and misled investors, New Jersey’s public employees faithfully made their payments into the funds. Public employees in the Garden State contribute 5.5 percent of their compensation to their retirement fund, and earn an average annual benefit of $20,349.

Now the state’s policy of underfunding the retirement security of state employees has been exposed. As The Wall Street Journal noted this week: “The problems go back nearly 15 years, to when the then-relatively healthy state decided to borrow $2.8 billion and stick it in its pension funds in lieu of making contributions from tax revenues.”

The state compounded the problem by using accounting gimmicks, giving investors the false impression that everything was fine. And governors from both parties failed to make required payments into the funds. Earlier this year, for example, Governor Chris Christie failed to make the state’s required $3.1 billion payment.

No one should be surprised that New Jersey’s fraud against investors, retirees and taxpayers began with tax giveaways for the rich. Lost revenue from income tax cuts enacted from 1994 through 1996 – under GOP Governor Christine Todd Whitman – totaled $14 billion, and sales tax cuts totaled $10 billion. That’s more than enough to fill the hole in the state’s pension funds.

We have every right to be angry with irresponsible public officials in New Jersey. If anything, they got off the hook easy, with the SEC failing to name names or fine the officials who conducted the fraud. Sadly, other states have been just as irresponsible. Many have lost revenue by passing unwise tax cuts, then underfunded their pension plans and used accounting gimmicks to hide their inadequate investments. Investors, taxpayers and retirees all benefit when there is accountability and transparency in pension funds.

According to a CNN poll released last week, 60% of Americans support legislation recently passed by Congress to save hundreds of thousands of jobs that were on the chopping block. And they favored protecting public jobs even without knowing that the legislation wouldn’t add a dime to the deficit.

AFSCME members also know how important that legislation was, which is why they led the fight. They generated more than 60,000 phone calls, letters and e-mails to Congress. In addition, AFSCME ran television, radio and online ads, and built a broad-based campaign for its passage.

Now that this vital legislation for protecting jobs has passed, AFSCME is working to let the country know that Democrats in Congress came through for our jobs and our states.

AFSCME launched radio ads last week as part of an aggressive $2.5 million mobilization and advertising campaign during the August congressional recess. AFSCME’s campaign highlights the differences between members of Congress who saved jobs and those who voted to lay off nearly one million Americans and tried to wreck the economy for political gain.

On launching the campaign, Pres. McEntee said:

“America’s working families need to know that key members of Congress stood up for them by voting for legislation to save hundreds of thousands of jobs. The American people will remember who stood up to save our struggling economy, and who chose to play politics with our lives and jobs.”

AFSCME Kentucky members speak out against furloughs.

AFSCME Council 62 has filed for an injunction to stop Kentucky Gov. Steven Beshear’s (D) plan to furlough state employees for six days this fiscal year, asserting that the plan would cause “irreparable harm” to the workers and to the security and well-being of the commonwealth’s citizens. The first furlough day is scheduled to occur on the Friday before Labor Day.

Council 62 represents nearly 9,000 state workers in two units: corrections and probation,  parole and law enforcement employees, and social service and employment workers.

The suit, filed in Franklin County Circuit Court on August 6, seeks to show that 24-hour corrections facilities would have to be staffed at mandated levels regardless of furloughs in order to avoid compromising the security of the facilities and nearby communities, resulting in extensive overtime costs that would be greater than any proposed savings.

Council 62’s filing also points out that social service employees provide vital services around the clock to Kentucky communities, that they’re already understaffed, and that furloughs would needlessly endanger the lives of children needing protection and families in crisis requiring immediate assistance.

Six AFSCME members signed-on to the lawsuit as plaintiffs.

Governor Beshear’s ability to order furloughs was given a legislative push as part of a compromise budget this year. Legislators called furloughs a “last resort tool” to make up $131 million in budget cuts required of the governor. Before any other major cuts were announced, and without documentation, Beshear announced a furlough plan that he claimed would save Kentucky $24 million.

Council 62 has questioned that savings claim, noting that states around the country – including California,  Ohio, Nebraska and Washington – are beginning to realize that unexamined costs from furloughs, including additional overtime and missed services, are actually eating up projected savings. The end result of furlough plans like Kentucky’s is undue harm to state employees and their families, to prison security and to families in need.

An initial hearing for the injunction has been set for August 16.

In the meantime, after working eight years under the previous administration without an executive order for representation, both AFSCME Kentucky units this week ratified negotiated agreements with the commonwealth of Kentucky establishing new and stronger rights for employees.

Statement of AFSCME President Gerald W. McEntee on House passage of the Jobs Bill:

“America’s working people have won a tremendous victory in the United States Congress today – a victory that is going to save hundreds of thousands of jobs. The House of Representatives joined the Senate to pass a bill that will provide vital federal aid to state and local governments and school districts to help with budget shortfalls and save jobs.

“Everyone agrees that we aren’t creating jobs fast enough. The last thing we needed was even more layoffs. AFSCME led the fight to pass this bill to save thousands of jobs that were on the chopping block without adding a penny to the deficit.

“The American people will remember that Democrats stood up to save our struggling economy, while Republicans – with a few courageous exceptions – chose to play politics with our lives and jobs.”

The job numbers released last week made it clear that the economic recovery is slowing down, and the increase in state and municipal worker layoffs is one of the chief factors. Not counting losses from temporary census workers, public sector job losses rose to 48,000 in July as many states began a new fiscal year facing huge budget shortfalls.

Economist Robert Brusca tells CNNMoney.com that this crisis was foreseeable — and action is needed to prevent even more losses:

“All of us knew that the municipal government funding is a ticking time bomb. There’s more pressure on municipalities rather than less. Putting a Band-Aid on the municipal economy makes sense.”

That Band-Aid will come in the form of H.R. 1586, a jobs bill being voted on by the U.S. House during an emergency session this week. The bill will provide $26 billion in federal aid to state and local governments and school districts at a time when some estimates put nationwide state budget shortfalls as high as $140 billion.

Without action, the economy could lose as many as 900,000 jobs in both the public and private sectors.

Read the full article at CNNMoney.com, then call your representative and urge them to vote yes on the jobs bill to get this critical aid to states.

This message comes from AFSCME President Gerald W. McEntee and Secretary-Treasurer Lee A. Saunders.

Click here for a state-by-state breakdown of the impact this funding will have during the 2011 fiscal year.
(Courtesy FFIS Federal Funds Information for States)

Today, the U.S. Senate took a bold step forward in the effort to protect jobs and bolster America’s economic recovery. The Senate, by a 61 to 38 margin, overcame the filibuster opposing H.R. 1586, which provides significant aid to states and school districts.

This is an enormous step in the right direction for AFSCME members fighting to protect our jobs. And at the end of the day, all Democratic senators voted to protect those very jobs. And with two courageous exceptions, Olympia Snowe and Susan Collins of Maine, Republican senators voted to lay off thousands of public employees.

Over the last several months, AFSCME members like you have called, e-mailed, and faxed your senators — and recruited your friends and co-workers around the country to secure this victory.  You urged the Senate to do the right thing and avoid prolonging the economic crisis that confronts public service workers in every community in this country. And your voice — along with thousands of other AFSCME members — was heard in Washington, DC.

Because of your ongoing actions we were able to move this critically important bill forward. Under the leadership of Sen. Harry Reid and with the persistence of Senate Democrats and you, the Senate has thrown a lifeline to millions of Americans who are being hit hard by the worst economy since the Great Depression.

The Republican filibuster was our biggest obstacle. But, we still face a vote in the House and we will need your help to ensure victory there. As we look to the elections, Americans have a clear choice: Democrats who will do what it takes to save and create jobs and get our economy moving, or Republicans who are all too willing to watch the economy stall for their political gain.

Thanks again for all that you’ve done to help pass this critical bill and save more than 900,000 public and private sector jobs. We’ll be sure to keep you updated on what’s next.

This entry by AFSCME President Gerald W. McEntee is cross-posted from Huffington Post and Firedoglake.

Earlier this year, Democrats in the Senate tried three times to pass legislation that would help states deal with growing Medicaid rolls, the joint federal-state health care program for the poor. Each effort has failed in the face of united Republican obstructionism. Earlier this month, The Washington Post explained clearly why this legislation should pass:

“States are staggering under the impact of the economic slump, with revenue down and demand for social services up. Some 30 states were counting on the Medicaid money to balance their budgets, as required by law. The other cuts they would be forced to make if the Medicaid funds are not forthcoming would further slow the economic recovery. Passing this package is the right thing to do, and fiscally prudent too.”

The failure to pass this help for states, experts agree, will cause as many as a million additional job losses in both the private and the public sectors. Yet Senate Republicans continue to block passage.

Now, thanks to the leadership of Senator Harry Reid (D-NV), the Senate has one more chance to do the right thing and protect nearly a million more jobs from going down the drain. Later today, the U.S. Senate has scheduled a cloture vote on a bill – H.R. 1586 – that will provide $26 billion in funding to help states deal with their budget shortfalls, bolster Medicaid and fund education jobs. But it’s up to us to win it. The Republican congressional leadership has made their strategy clear – they will say no at all costs.

This funding is fully paid for, so it is simply false for opponents to say that passage would increase the deficit. However I would be remiss if I didn’t note that a part of the funding comes from a cut in future Supplemental Nutrition Assistance Program (formerly food stamp) benefits. However, it does not take effect until 2015, which gives us plenty of time to mobilize to make sure the cut never happens.

Yet, Republican opposition to the help for the states and the education money – even if it’s paid for – intensifies as we inch closer toward November. Quite frankly, it looks clear to many that Republican leaders are doing everything they can to bring down the economy for political gain.

They think they will benefit on Election Day if more Americans lose their jobs and unemployment grows. It’s in keeping with their leader Rush Limbaugh’s professed goal in the early days of the Obama administration: “I want him to fail.” Far too many GOP legislators are taking their cues from extremists on the right, and not listening to the message that voters are sending – it’s time to end the partisanship and look out for the interest of the American people.

By a margin of more than 2 to 1, Americans believe that saving and creating jobs is more important than reducing the federal deficit to move our economy forward. Considering how tone-deaf Washington has become on jobs, it’s no wonder Americans are gloomy about the nation’s economic recovery. Republican senators need to make a choice: Are they going to continue to obstruct, or will they stand with American families who want our economy to grow and want to put people back to work?

If we fail to break the Republicans legislative lockdown today, there should be no doubt that there will be more pain for working families, more debt and a prolonged recession. Every senator needs to know that it’s time to stop the obstruction. It’s time to protect American jobs.

If you care about the future of our economy and the jobs of nearly a million Americans, call your senators immediately and tell them to vote yes on cloture.

You can click on this link to make the call. Let me know that you’ve done it. It’s time to get our economy and our country working again.

Years after George W. Bush’s failed attempts to privatize Social Security, his cohorts are renewing calls for privatization. This time they’re using deficit reduction as an excuse. Recently, House Minority Leader John Boehner (R-OH) proposed raising the retirement age to 70.

Is this for real?

Equally disturbing is the focus of a new fiscal commission that’s supposed to recommend ways to bring down the deficit by looking at all areas of the federal budget, including taxes and military and education spending. Unfortunately, the commission seems to be concentrating more on benefit programs, like Social Security and Medicare.

No surprise there since many of the commission’s members are conservatives and deficit hawks. While these folks oppose tax increases – even for the wealthiest Americans – they apparently believe it’s fine to balance the budget on the backs of vulnerable Americans. Along with privatization, they’re looking at cutting Social Security by changing the way benefits are calculated, raising the retirement age, and reducing annual cost-of-living-adjustments.

The truth is that Social Security has a surplus of $2.6 trillion, and doesn’t add a penny to the deficit. So the program shouldn’t even be part of the debate.

The real issue is all the spending over the last decade on tax cuts for the rich, two wars, and the bank bailouts. None of it paid for. All the money borrowed. Much of it from Social Security. Now that money needs to be paid back, so workers and retirees receive the full benefits they’ve earned.

The American people want to keep Social Security strong. Polls show that eight in ten reject cutting benefits to reduce the deficit.

AFSCME agrees and we have a simple message for the National Commission on Fiscal Responsibility and Reform: Don’t turn Social Security into the scapegoat for the deficit. Keep your hands off!

For more, see AFSCME Pres. Gerald W. McEntee’s remarks from Thursday’s news conference to launch Strengthen Social Security, a coalition of 60 groups dedicated to fighting cuts to Social Security:

This full-page ad is running in the Louisville Courier-Journal.

This week, the National Conference of State Legislators is holding a legislative summit in Louisville, KY, to discuss issues important to state legislatures in the midst of record budget shortfalls across the country.

Scheduled to address the conference today is none other than Sen. Mitch McConnell (R-KY), the Republican leader in the U.S. Senate and the chief architect of a strategy to block critically needed federal aid for states, putting the national economic recovery at risk by forcing layoffs of thousands of teachers, police officers and firefighters.

We couldn’t resist the opportunity to hold McConnell accountable.

AFSCME is running a full-page ad in today’s Louisville Courier-Journal highlighting editorials from around the country calling on Congress to approve badly-needed federal aid for cash-strapped states.

We’re also projecting a giant video on buildings in downtown Louisville near the NCSL meeting to call out McConnell for his efforts to block the aid, force layoffs and stall the national economy for political gain. Politico’s Mike Allen called it the “ad of the day” in today’s Playbook, and CNN’s Political Ticker notes the ad targets McConnell on his “home turf”.

See the larger-than-life message to McConnell and the Republicans here:

By a 64-30 margin, Americans think reducing unemployment is more important than deficit reduction according to a Quinnipiac poll released on Thursday. While the Senate was finally able to pass the long-delayed extension of unemployment benefits this week, that is just the first step in keeping our economic recovery going — and much more needs to be done.

AFSCME Pres. Gerald W. McEntee urged President Obama and Congress to “heed the lessons of this poll,” and pass a real jobs bill that includes crucial federal aid to state and local governments to prevent the potentially devastating loss of up to 1 million additional public and private sector jobs.

“This poll confirms that Republican rhetoric in Washington is out of sync with average Americans. By a margin of more than 2 to 1, Americans believe that saving and creating jobs is more important than reducing the federal deficit to move our economy forward. Considering how tone-deaf Washington has become on jobs, it’s no wonder Americans are gloomy about the nation’s economic recovery.

Read the full statement.