Americans for Prosperity-Nebraska has hosted town halls on government spending across Nebraska. A key component to reigning in government spending is reforming the Commission of Industrial Relations (CIR), read the Grand Island Independent's editorial on CIR reform:

Nebraska’s municipalities and governments are hopeful that the Legislature can correct the outdated and illogical language regulating the Nebraska Commission on Industrial Relations. This is the group that oversees all labor negotiations involving public entities. Members are appointed by the governor and approved by the Legislature.

Grand Island and many other Nebraska communities have been caught in a spiraling escalation of public wages paid to city employees after the CIR has been involved. The result is wage increases that exceed the private sector in many cases and erodes the ability of the city to pay.

State Sen. Tony Fulton of Lincoln has introduced three bills to create a fairer way for the CIR to impact communities and their employees. Fulton addressed a group of local government officials and business leaders Friday and explained his proposals.

The most frustrating segment of the CIR process is the use of "comparability" studies to survey similar jobs in cities across the state and in neighboring states. Fulton has introduced LB1042 that would require a CIR ruling to be based on the local government’s "economic dissimilarities" instead of only surveying other cities similar in geography, demographics and size. While the array of cities may be similar in those aspects, there may be marked differences in economic nuances from another regional city to a Nebraska community. The last decade was a perfect example where Nebraska cities were impacted by taxing limitations, drought, economic disparities and a depressed business climate. Cities in neighboring states, while similar in population did not have to contend with those realities and often had higher public wage scales. As a result of applying the comparability factors, the Nebraska community often had to pay employees more than the city had the ability to pay.

Fulton is asking for the CIR to apply rulings based on "reasonableness" rather relying solely on comparability. He suggests that by applying a more common-sense method for resolving labor issues, it would create a better economic landscape for the state and not create the current economic havoc facing communities.

In addition, Fulton is seeking a change that would allow the CIR to compare wages of the private sector when considering the local government’s employee scale, not just public employees. Where similar jobs are being done in the public sector and in private business, Fulton suggests that those jobs be compared in wages and benefits. That would create a more level landscape for all.

Hall County Attorney Mark Young took it one step further in a move that makes imminent sense. He suggests that the reasonable and ability to pay standards take in to account the taxing lids for public bodies, especially county governments which are increasingly hamstrung by state statute in their ability to levy tax.

Perhaps the most insightful comment also came from Young when he said, "(The unions) know the CIR’s broken and we know its broken — it’s just time to have that dialogue.

City and county entities are fighting to keep taxes down and still make proper wage adjustments for their employees. But when the CIR gets involved and pushes the comparability factor of the negotiations, the ability of government to pay the newly mandated level often strips the government of its ability to pay.

Taxpayers should know that the city council and county board is often not responsible for many of these recent hefty pay increases to employees, but rather the CIR is pushing these escalating wage increases on the backs of taxpayers. By a reasonable application of the survey, including looking at Nebraska communities first, and also including the private sector wage scale for similar jobs, the entire process of adjusting public employee wages becomes a fairer negotiation.

Hopefully the legislature will understand the crisis facing local city and county officials.

Source: http://theindependent.com/articles/2010/02/19/opinions/editorials/doc4b7d69d342a69935264252.txt