56 percent of local officials say unions are a liability to fiscal health

Aug 29, 2011

56 percent of local officials in jurisdictions that have unions believe the unions have been a liability to their jurisdictions' fiscal health, according to a survey released by the University of Michigan (43% reported "somewhat of a liability," and 13% reported "a significant liability").

The survey was conducted the Center for Local, State and Urban Policy from April 18 to June 10, 2011.

The Center says only 27 percent of Michigan's local governments have unions, but the vast majority of the state's population (98 percent) live in areas where their local governments have unionized employees.

The perception that these unions hurt a government's bottom line doesn't necessarily fall along party lines, according to the report:

Compared to Republican and Independent local leaders, Democratic officials are somewhat more positive about the fiscal impact of employee unions. But a surprisingly high 48 percent of the Democrats say unions have been a liability to their jurisdictions' fiscal health.

Thomas Ivacko told the Associated Press:

"It's a complex picture coming out from the local level," center administrator Thomas Ivacko told the AP. "Local leaders tend to say that having a union is hurting their fiscal health. . . . (But) the picture isn't all negative."

Despite the bad perception on overall fiscal health, the report says the respondents rated their relationship with the unions as generally positive:

60 percent of the local officials say the relationship between their localities and employee unions has been either good or excellent over the past 12 months, according to the statewide poll. Only 5 percent say the relationship was poor.