Gov. Scott Walker today cited a Moody’s article to blast the potential fiscal impacts of a Dane County Circuit Court Judge’s ruling on Wisconsin Act 10.
Referencing an article titled “Wisconsin’s Act 10 Ruled Unconstitutional; Credit Negative for Local Governments,” Walker said the statement underscores the importance of receiving a stay on the decision.
“Our budget reforms not only balanced Wisconsin’s $3.6 billion budget deficit, but they also gave local units of government and school boards the ability to effectively manage their budgets,” Walker said in a press release. “Moodys’ statement about the recent court ruling underscores the importance of receiving a stay on the decision.
“Moody’s recognizes the importance and positive impact of the reforms contained in Act 10. Hopefully local units of government in Wisconsin will not have to take on unnecessary debt obligation costs, which would likely fall on the next generation.”
In a ruling that will likely be repealed, Dane County Circuit Court Judge Juan Colas last week ruled unconstitutional certain provisions of Act 10, which stripped public employees of collective bargaining powers granted by the state. Under the ruling, which impacts municipal employees, public workers would regain bargaining powers for wages, which were limited to inflation unless approved in local referendums.
Attorney General J.B. Van Hollen has asked for a stay of the ruling, which did not change requirements that public employees contribute toward their health care and pension benefits.
Unions have generally praised the ruling, citing their belief that Walker overreached. Judge Colas was asked to rule on the constitutionality of the reforms by the Madison teachers union.
Meanwhile, Walker released an excerpt of the Moody’s article that read as follows:
“Ultimate repeal of these Act 10 provisions would be a credit negative for Wisconsin (Aa2 stable) local governments because it would materially restrict their budgetary flexibility at a time when budgetary challenges show no signs of letting up.”
