It Is the Worst of Times....

Depending on how you look at the situation, our national (and, to an extent, our state and local) economy is either in free-fall towards recession or, at best, is flat as a board. Either way, this spells potential bad news for working people and their families. In a recent edition of the AFL-CIO publication, America at Work, the staff laid out the stark facts. Whatever one’s political views, these depressing economic figures, unfortunately, speak for themselves.

• Net number of U.S. jobs lost between January, 2001 and January, 2003: 1.6 million (source: U.S. Bureau of Labor Statistics—BLS)

• Manufacturing jobs lost during the same period: 1.85 million (BLS)

• Private-sector jobs lost during the same period: almost 2.3 million (BLS)

• Long-term unemployed Americans without work for 27 weeks as of January, 2003: 1.7 million, up from 1.2 million without work for 27 weeks as of January, 2002 (BLS).

• Number of Americans who want jobs now, but cannot find them: 10 million (source: Economic Policy Institute—EPI)

• U.S. consumer confidence level in February, 2003: 66%, the lowest in more than nine years (source: The Conference Board—TCB)

• Number of states reporting budget gaps midway through fiscal year 2003: 36—led, of course, by California, with an approximate $38 billion budget shortfall (source: National Conference of State Legislatures—NCSL)

• Real average hourly earnings increase for U.S. workers between January, 2002 and January, 2003: six cents! (BLS)

• Number of Americans without health coverage in 2001: 41.2 million (source: U.S. Census Bureau—USCB)

• Number of working-family Americans without health coverage in 2001: almost 33 million (USCB)

• Number of American children without health coverage in 2001: 8.5 million (USCB)

• Number of Americans in working families who lost health insurance in 2001: 1.66 million (BLS)

• Portion of people without health insurance in 2001 who were Latino: 45% (source: The Commonwealth fund—TCF)

• Portion of workers, in 2001, without health care coverage, whose income was less than $20,000: 49% (TCF)

• The 2000 federal budget surplus: $236 billion (source: Office of Management and Budget—OMB)

• The 2003 federal budget deficit: $400 billion (source: U.S. House Budget Committee—HBC)

• U.S. 10-year budget-deficit projection, excluding war costs and Social Security Trust Fund resources: $1.2 trillion (source: Congressional Budget Office—CBO)

• Amount of 401(k) savings lost in 2001: $175 billion (source: Institute for America’s Future—IAF)

• Stock market value loss between March, 2000 and February, 2003: around $6.6 trillion (CBO)

• Percentage of elderly Americans whose sole income in 2000 was Social Security: 18% (source: U.S. Social Security Administration)

• Personal bankruptcies in fiscal year 2002: 1.5 million (source: American Bankruptcy Institute—ABI)

• Increase in personal bankruptcies from fiscal year 2001: 7.7% (ABI)

• Increase in average personal debt since 2000: 4.9% (ABI)

• Potential revenue loss for states over the next 10 years if proposed tax cuts are enacted: $64 billion (source: Center on Budget and Policy Priorities—CBPP)

• Range of total 10-year funding loss to state and local governments if proposed tax policies make revenue bonds less attractive to investors: $75-$155 billion (source: California State Treasurer’s Office)

• Percentage of Americans who approve of unions; from a February, 2003 national survey of 1,602 people: 66% (source: Peter Hart Research Associates)

These discouraging figures (and others) transcend political partisanship. The economy is broken, and millions and millions of hard-working Americans are suffering for it while the wealthiest among us not only continue to do well, but are getting additional and unneeded tax breaks. People’s “safety nets”—financial and medical—are being shredded faster than records at a corporate headquarters under indictment.

Both governmental and spending priorities are cockeyed. The grossly unfair proposed tax cuts (skewed heavily to the rich, at the expense of working people) could be much better spent on people. Even if the tax cuts are lowered, the hundreds of billions of dollars going to the wealthy and corporate America should be spent instead on Medicare drug benefits, repair and renovation of schools, pre-school facilities, a meaningful working-family tax rebate, our crumbling national infrastructure (roads, cities, facilities, building, etc.)—just to name some worthwhile priorities.

Until we allocate funds more wisely, until the economy really improves for everyone, we can count ourselves very fortunate to have our good jobs, along with the security they provide for our families and future.

Martin Ludlow Wins Council Seat
In 10th District with Major Labor Backing

On Tuesday, May 20, organized labor, led by the Los Angeles County Federation of Labor, won yet another important local election. The labor-endorsed candidate for the City Council (10th District), Martin Ludlow, won handily over his opponent, who represented a continuation of old, discredited inner-city politics. The final tally was Ludlow, 56%, Deron Williams, 44%.

Brother Ludlow, a former staffer on the County Fed and in the office of strong labor ally (and new Los Angeles City Councilmember) Antonio Villaraigosa, will bring fresh ideas and vision to the deliberations and decision-making process at City Hall.

The County Fed’s all-out push for Ludlow put him over the top in the 10th District. Organized labor turned out its muscle in a big way, contributing resources for various campaign activities and sending some 650 union members to knock on doors in the district in the final few days and on election day. The Fed ran three outreach campaigns: one geared to African-American voters, one targeting Latinos, and another aimed at union members and households.

It worked—big time. Congratulations to Brother Miguel Contreras, the Fed’s Secretary-Treasurer, and every union volunteer who got involved and put Martin Ludlow over the top! Our Community Colleges are Hurting,
And So are Important Educational Opportunities

California’s Community College system is one of the most important blocks in the state’s higher-education structure. For hundreds of thousands of students, young and old, these two-year schools provide a first step on the ladder of higher education, or introductory/refresher courses for mid-life education. For tens of thousands of working, minority and lower-income families, the community colleges provide the only way to an education or training beyond the high school level.

Quite literally, community colleges are the door to higher education and professional careers. They are an invaluable stepping stone between high school and the four-year colleges which may be beyond one’s financial or academic reach after high school.

The administration in Sacramento originally proposed cuts of some $140 million (down from more than the double amount that was first suggested!) in the community college budget. While the state’s budget crisis is very real and very serious, cutting community college funding so deeply is both short sighted and just plain wrong. Fortunately, in the governor’s revised budget proposal of early May, he has rescinded the planned cuts for community colleges and, in fact, has restored funding for this very good cause.

The governor has acted wisely. Hopefully, the legislature, as it bargains for a new state budget, will keep all or most of this proposed funding. Community colleges are a proven successful investment in our future. They reinforce the notion that any student, irrespective of financial capability, race or ethnic background, can succeed if he or she wants to. Crippling our community colleges by slashing their funds is ultimately self-defeating, and should a last resort, with the least-possible amount of money taken out.

In unity,

BRIAN D’ARCY, Business Manager